A lot of Indians who went abroad for studies, work or business had to set up a local bank account in that country. However, due to changing situations, these accounts might end up with no money and become dormant. If that's the case, you have to report this dormant foreign bank account in your income tax return (ITR) for AY 2026-2027. If you don't, you risk a tax notice for defective ITR or even scrutiny in extreme cases.
For example: If Mr. A is a Resident and Ordinarily Resident (ROR) in India during the relevant previous year, the dormant foreign bank account has to be disclosed in Schedule FA, even though no transaction took place during the year and the account had nil balance.
