21 January 2024
I have received RSUs from my company during the calendar years 2021 and 2023, but due to ignorance I failed to update schedule FA of ITR-2. How can I go about fixing this, will I be able to update the previous 2 ITRs using ITR-U?
09 July 2024
To rectify the omission of reporting RSUs (Restricted Stock Units) in your previous ITRs (Income Tax Returns), you can follow these steps:
1. **Collect Necessary Information**: Gather details of the RSUs received during 2021 and 2023, including the date of vesting, fair market value at the time of vesting, and any taxes paid, if applicable.
2. **Prepare Revised ITRs**: You'll need to prepare revised ITRs for the relevant assessment years (AY). Since you mentioned using ITR-2, ensure you have the correct forms for the respective years (ITR-2 for AY 2022-23 and AY 2024-25).
3. **Update Schedule FA**: In the revised ITRs, update Schedule FA (Schedule of Foreign Assets and Income) to reflect the details of RSUs received. RSUs are treated as foreign assets if they were granted by a foreign company or its subsidiary, depending on specific circumstances.
4. **Submission Process**: Fill out the revised ITR forms accurately, making sure to include all relevant details about the RSUs under the appropriate sections. Ensure that all other information in the ITRs remains consistent with the originally filed returns.
**Submission Method**: You can submit revised ITRs using the Income Tax Department's e-filing portal. Choose the option to file a revised return and upload the corrected XML file generated from the updated ITR form.
**Verification**: Once submitted, verify the revised returns using your Aadhaar OTP or through other verification methods specified by the Income Tax Department.
**ITR-V Acknowledgment**: After successful submission, download the ITR-V acknowledgment. Print, sign, and send it to the CPC Bangalore address within 120 days of e-filing for verification, unless you have e-verified the return.
Regarding the use of ITR-U (Utility for ITR Filing): ITR-U is the Excel utility provided by the Income Tax Department to manually fill in and generate XML files for ITR submission. You can use this utility to prepare your revised ITR forms if you find it more convenient than the online filing process.
Ensure to consult with a tax advisor or CA if you need assistance in correctly updating and filing your revised ITRs to avoid any further issues or penalties related to non-disclosure of income.
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