What is Foreign Asset Reporting? | FATCA, FBAR & Global Compliance Explained

Foreign Asset Reporting refers to the mandatory disclosure of overseas financial assets and accounts by individuals, NRIs, and businesses to tax authorities. This compliance requirement is designed to prevent tax evasion and ensure transparency in global financial transactions. In India, residents are required to report foreign assets under the Income Tax Act, while in the US, reporting obligations fall under FATCA and FBAR rules. Failure to report correctly may lead to heavy penalties, legal consequences, and loss of credibility with tax agencies. Understanding foreign asset reporting helps you stay compliant, protect your wealth, and avoid unnecessary legal risks when holding assets abroad.