Foreign Trust: Schedule FA + Form 3520
Foreign family trust disclosure — Schedule FA peak balance, US Form 3520, grantor trust rules, BMA risk.
The 60-second version
Returning NRIs with foreign family trusts must file Schedule FA in India ITR and may need US Form 3520 — omission triggers 6-year statute and Section 6677 penalties.
Trust reporting is parallel US + India — not pick one
Schedule FA captures foreign trust interest and peak balance.
US persons report transfers/distributions on Form 3520.
Deep dive: offshore trust parent estate article for dynasty structures.
Forms matrix
| Form | Country | Trigger |
|---|---|---|
| Schedule FA | India | ROR + foreign trust |
| Form 3520 | US | Transfer/distribution |
| FBAR | US | Foreign account |
| Form 8938 | US | Specified asset |
Trust compliance
Identify interest
Beneficiary %
Peak balance
FY max
Schedule FA Part
ITR-2/3
US 3520
If US person
CA sign-off
Both jurisdictions
Flow
Trust kit
- Trust deed.
- K-1/accounts.
- Peak stmt.
- 3520 ack.
- FA JSON.
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Black Money Act
Undisclosed foreign trust triggers BMA penalties — proactive FA beats notice.
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Turn this guide into a decision file
0 of 4 checked
Discretionary trust?
Still report beneficiary interest if ascertainable.
RNOR skip FA?
No — FA applies when resident; RNOR is resident.
Inherited trust?
Report from inheritance date.
HUF vs trust?
HUF is India structure — different guide.
Nil balance?
May still report if interest exists.
US grantor trust?
Schedule FA + US 3520-A.
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