New Delhi, July 21 -- The rapid growth of investment opportunities in Gujarat International Finance Tec-City (GIFT City) has opened new avenues for Indian residents to access global markets. Through GIFT City funds and other IFSC-based investment vehicles, investors can gain international diversification while investing through structures established within India.

This blend of an Indian location and global exposure has also raised an important tax reporting question: should investments in GIFT City funds be disclosed as foreign assets in Schedule FA of the income-tax return when the underlying investments are located overseas?

The issue has attracted significant attention because Schedule FA forms part of India's foreign asset disclosu...