FLA Revised Return 2026: File by 30 September or Face FEMA Penalties
If you filed your FLA Return for FY 2025-26 with provisional figures by 31 July, you must now file a revised return with audited figures by 30 September 2026. Companies that missed the July deadline face Late Submission Fees and FEMA penalties under Section 13. Here's what you need to do.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Section 6(5), FEMA 1999; Section 13 and Section 15, FEMA 1999; Foreign Exchange (Compounding Proceedings) Rules 2024 — Effective: Rules 2024 notified 12 September 2024. Source: RBI Master Direction — Reporting under FEMA 1999. Last reviewed by CA Harun Raaj: August 2026.
The Annual Return on Foreign Liabilities and Assets (FLA Return) for FY 2025-26 had its deadline on 31 July 2026. But if you filed with provisional figures — or missed the deadline altogether — your compliance obligation continues right now.
Two Situations, Two Urgent Actions
Your position depends on whether you filed by 31 July and what data you used.
Situation 1: You Filed Provisionally by 31 July
If your statutory audit was not complete when the deadline fell, you correctly filed with estimated or provisional balance-sheet data. The FLAIR portal accepts this, and your filing counts as timely — but it is not final.
Your obligation: File a revised FLA Return by 30 September 2026 with audited figures.
Once your statutory audit is complete, log in to flair.rbi.org.in and:
- Raise a permission request for a revised return
- Await RBI portal approval (typically within a few business days)
- File the revised return with final audited balance-sheet data as of 31 March 2026
30 September 2026 is your hard deadline. This is the standard RBI convention for revised FLA filings. No extension has been announced for FY 2025-26.
Situation 2: You Missed the 31 July Deadline Entirely
Companies that did not file by July 31 — provisional or final — are in a delayed-filing position. The return can still be submitted, but it will attract a Late Submission Fee (LSF) based on the amount of FDI/ODI involved and the period of delay.
Under Section 13, FEMA 1999, delayed filings also expose you to:
- Penalty: up to 3× the amount of the foreign liability or asset involved
- If amount is unquantifiable: up to ₹2 lakh
- Continuing violation: ₹5,000 per day
The Foreign Exchange (Compounding Proceedings) Rules 2024 allow voluntary disclosure and compounding under Section 15, FEMA 1999. Delays under three years typically use the LSF route via FLAIR. Longer delays may require formal compounding. Do not delay further — each additional day increases your exposure.
Who Must File the FLA Return
Every Indian company or LLP that has:
- Received Foreign Direct Investment (FDI) in any prior financial year, OR
- Made Overseas Direct Investment (ODI) in any prior financial year
…and holds outstanding foreign liabilities or assets as on 31 March 2026.
A critical misconception: "We received FDI in 2021 but have had no new foreign investment since — so we don't need to file this year."
Incorrect. If the FDI investment remains on your balance sheet, you must file FLA every year, regardless of new activity. Each missed year is a separate FEMA contravention.
Exception: Section 8 companies and non-profits receiving foreign grants under the FCRA do not file FLA. They use FC-4 under the FCRA framework.
Filing Status Matrix
How to File on FLAIR
- Go to flair.rbi.org.in
- Log in with your company's CIN and authorised signatory credentials
- Select Annual Return on FLA (FY 2025-26)
- For revised return: Raise a permission request first, then file the revised return after portal approval
- For late filing: Select the late submission option, compute and pay LSF, and file with audited balance-sheet data
- Submit audited balance-sheet data as of 31 March 2026
Email queries: All FLAIR-related requests now go to flareturn@rbi.org.in. The address surveyfla@rbi.org.in has been discontinued.
Key point: File your revised FLA Return with audited figures by 30 September 2026 if you filed provisionally; missed filings attract penalties up to 3× the foreign amount under Section 13, FEMA 1999.
Why This Matters Now
FEMA compliance is not optional, and the RBI has moved to digital enforcement via FLAIR. The 2024 Compounding Rules introduced a ₹2 lakh cap for pure reporting delays — a meaningful relief — but only for voluntary disclosures. Companies that wait for an RBI notice or investigation do not benefit from this cap.
If you are in Situation 1, act within the next few weeks. Your audit will likely be complete by late August or early September, leaving you time to request revised-return permission and file.
If you are in Situation 2, the compounding route via Section 15, FEMA 1999 is still open, but delay makes it worse. Every additional day of non-filing is a separate contravention attracting ₹5,000 per day.
I'm CA Harun Raaj, Visakhapatnam. If your company holds FDI or ODI and is unsure of your filing status, reach out — we can review your position and file or revise your FLA Return immediately.
---
See Also
Frequently Asked Questions
Do I need to file a revised FLA Return if I filed provisional figures by 31 July 2026?+
Yes. Under RBI convention, companies that file with provisional or unaudited figures must file a revised return with audited balance-sheet figures by 30 September 2026 via the FLAIR portal. Request revised-return permission first; the RBI typically approves within a few business days. No fee applies to the revision itself.
What is the penalty if I miss the 30 September revised-return deadline?+
Under Section 13, FEMA 1999, the penalty is up to 3× the amount of the foreign liability or asset involved. If the amount is unquantifiable, the penalty is up to ₹2 lakh, plus ₹5,000 per day for continued violation. The Foreign Exchange (Compounding Proceedings) Rules 2024 allow voluntary disclosure and compounding at capped amounts, but delays increase exposure.
Our company received FDI in 2022 but has not filed FLA since then. What is our exposure now?+
You have four years of missed filings (FY 2022-23, 2023-24, 2024-25, 2025-26). Penalty exposure is up to 3× the FDI amount for each year. Regularise immediately via the compounding route under Section 15, FEMA 1999. Voluntary disclosure typically attracts lower penalties than post-investigation compounding. Consult a CA to assess your position and file the returns.
Is FDI received by our startup from an NRI subject to FLA filing?+
Yes, if the investment was made in non-repatriable instruments, it is FDI and must be reported on FLA annually. Most startup seed rounds involve FDI. If the investment was allotted more than 30 days ago and FC-GPR was not filed, you have two contraventions: FC-GPR non-filing and FLA non-filing. File both immediately and consider the compounding route.
Can I file the FLA Return without a CA's involvement?+
The FLAIR portal requires the company's authorised signatory (typically a Director or CFO) to authenticate and submit the filing. A Chartered Accountant typically prepares the FLA data, reconciles it to the audited balance sheet, and coordinates the submission. Professional guidance is essential to ensure accuracy and avoid FEMA penalties.
Where do I send FLA-related queries now?+
All FLA queries must now be sent to flareturn@rbi.org.in. The previous email address surveyfla@rbi.org.in has been discontinued. Include your company's CIN and a clear description of your query.
Do Section 8 (non-profit) companies file FLA?+
No. Section 8 companies and non-profits receiving foreign grants under the FCRA do not file FLA. They use FC-4 under the FCRA framework instead. Check the nature of your foreign funding to confirm which return applies.
What if I filed late but the RBI has not yet sent a notice?+
File or revise your return immediately and consider voluntary disclosure under Section 15, FEMA 1999 and the Foreign Exchange (Compounding Proceedings) Rules 2024. Voluntary compounding is capped at ₹2 lakh per contravention for pure reporting delays. Waiting for an RBI notice does not benefit your case; it worsens exposure. Act now.
Go deeper with our hub guides
Statute-cited, section-by-section guides covering the same ground this article does.
Need help with this?
Our team handles the paperwork. You focus on your business.