FLA Return and its Purpose

FLA Return - Foreign Liabilities and Assets (FLA) is an annual filing requirement in India that aims to gather information about the foreign financial assets and liabilities of Indian entities. Its purpose is to:

• FLA Return helps authorities monitor India's external position by capturing data on foreign assets and liabilities held by Indian entities.

• The data collected through FLA Returns contributes to the compilation of India's balance of payments (BoP) and the country's international investment position.

• The information obtained from FLA Returns assists policymakers in formulating effective economic and financial policies.

• FLA Return promotes compliance and transparency among Indian entities engaged in international transactions.