RBI

RBI Extends FLA Return Due Date to 31 July 2026: Key Updates and Filing Guide 

The RBI has given some extra time to companies that were preparing to file their FLA returns by July 15, 2026. The Reserve Bank of India (RBI) has extended the last date for filing FLA returns for FY 2025–26 from July 15, 2026 to July 31, 2026. So, businesses have 16 more days to complete this important FEMA compliance filing.  

However, it is not advisable to leave this time until the last minute. This extra time should be used as an opportunity to reconcile the foreign assets and liabilities, correct errors, and file the return correctly. 

FLA returns are to be filed through RBI’s FLAIR (Foreign Liabilities and Assets Information Reporting) portal. The foreign assets and liabilities as of March 31, 2026, must be reported in the return for FY 2025–26. 

The email address of the RBI FLA helpdesk has also been changed. Instead of the previous surveyfla@rbi.org.in, flareturn@rbi.org.in should now be used. In case of technical issues with the FLAIR portal, companies should report their issues to this updated email without waiting until the last minute. 

What is an FLA Return and Why is it Important? 

An FLA Return is an annual regulatory filing. Here, the information about foreign assets and foreign liabilities of an Indian entity is reported to the RBI. This information is provided based on the financial position as of 31 March every year.The return must be submitted online through RBI’s FLAIR portal. 

Many people think that if there is no new foreign investment during the year, then an FLA Return is not required. There may be filing requirements if the entity has previous foreign investment, overseas investment, or any other reportable foreign asset or liability on its balance sheet. 

Importance of the FLA Return 

• Foreign investment monitoring: Information on foreign investment in Indian companies reaches the RBI. 
• Overseas investment information: Information on Indian entities having subsidiaries, joint ventures, or any other investment abroad is available. 
• Understanding foreign liabilities: Information on foreign loans, guarantees, and other financial liabilities can be reported. 
• Viewing external financial exposure: RBI gets a clear idea of the total financial exposure of Indian businesses to foreign countries. 

So, FLA Return is not just a calculation of the transactions. The position of the entity’s foreign assets and liabilities as of 31 March 2026 must also be reported.  

Who Needs to file the FLA Return? 

The requirement for filing an FLA Return depends on the foreign assets and liabilities of the entity. In general, the following types of entities may have filing requirements. 

Indian entities with FDI 

Indian companies or eligible entities that have received Foreign Direct Investment (FDI) from non-resident investors and have outstanding foreign investments may have to file an FLA Return. 

Entities with ODI 

If an Indian entity has made an Overseas Direct Investment (ODI) in a subsidiary, joint venture, or any other permitted entity abroad, then the information about that overseas investment may also be important for the FLA Return. 

Entities with foreign liabilities 

In addition to foreign equity, a filing requirement may arise when an entity has a foreign loan, guarantee, or other reportable foreign liability. 

Filing may be required even if there is no new investment 

Even if there is no new foreign investment in FY 2025–26, an FLA Return may be required to be filed when there is any previous foreign investment or overseas asset outstanding as of 31 March 2026. 

FLA Return vs Other FEMA Filings 

Companies with foreign investment or overseas investment often confuse different FEMA filings together. So, it is important to understand the difference between FLA returns and other filings. 

Filing	Purpose
FLA Return	Reports an entity’s foreign assets and liabilities as on 31 March every year.
Form FC-GPR	Reports the issue or allotment of capital instruments to a non-resident investor.
Form FC-TRS	Reports certain transfers of securities between residents and non-residents.
APR	Used for annual reporting related to certain overseas direct investment operations.

RBI’s new extension applies only to the deadline for the FLA return for FY 2025–26. So, the deadline for FC-GPR, FC-TRS, APR, or any other FEMA filing will not be extended automatically. 

What to do before 31 July 2026? 

It is better to start working step by step rather than waiting until the last week. Following the steps below can make the filing process much easier. 

Step 1: Check if an FLA Return is required 

First, review the company’s foreign shareholders, overseas investments, foreign loans, guarantees, and other foreign balances. 

Step 2: Gather the necessary financial information 

Have the financial data as of 31 March 2025 and 31 March 2026 ready. Keeping the balance sheet, trial balance, investment records, and foreign investment-related documents together will make the work much easier. 

Step 3: Match all the numbers 

Check the FLA return information with the accounting records. Also check the foreign investment details, ODI records, and previous RBI filings. 

Check out the details of foreign investors and overseas entities. Check if there is any mismatch in the share capital, share premium, foreign loans, and foreign currency balances. 

Step 4: Check FLAIR portal access 

Check if the entity’s FLAIR portal access is active. The Class 3 Digital Signature Certificate (DSC) of the authorized signatory should also be active. 

In case of any technical problem on the portal, do not wait for the last day; contact RBI’s updated helpdesk email flareturn@rbi.org.in. 

Step 5: File as soon as possible 

If the audited financial statements are not ready yet, eligible entities may consider filing the return using provisional figures. Later, the return can be revised by 30 September 2026, where applicable, when audited figures are available. 

What Happens if the 31 July 2026 Deadline is Missed? 

Failure to submit the FLA return by 31 July 2026 should not be ignored. Late filing may result in a late submission fee or other regulatory consequences as per the applicable RBI and FEMA framework. 

The potential risks are: 

• Late Submission Fee: Late filing may result in a late submission fee or other financial consequences. 
• FEMA non-compliance: Failure to file for a long period may result in regulatory non-compliance under FEMA. 
• Additional scrutiny: In case of serious or prolonged default, there may be a risk of additional scrutiny or action by the regulatory authority. 
• Issues in future transactions: Questions may arise regarding past compliance defaults during future foreign investment, remittance, or other FEMA-related transactions. 

However, the exact consequence may depend on the nature, duration, and applicable RBI/FEMA rules of the delay. So, if the deadline is missed, one should try to regularize the matter quickly without delay. 

How Can Enterslice Help with FLA Return Filing?  

FLA Return filing may seem simple, but it can be quite complicated. Especially when the company has multiple foreign investors, overseas subsidiaries, or joint ventures. 

Even if there are foreign loans, guarantees, and various financial and regulatory records, it can be time-consuming to reconcile the data. Reconciliation between provisional figures and later audited figures is required, but extra caution is needed. 

Our Services: 

• Help to understand the applicability of FLA return filing. 
• Help prepare the necessary financial and foreign investment information. 
• Review foreign assets and liabilities. 
• Help identify mismatches between accounting records and regulatory information. 
• Provide practical support in the filing process through the FLAIR portal. 

However, every entity’s situation is different. So, it is important to verify the information according to your own facts and applicable regulatory requirements before filing. 

Conclusion 

The RBI’s extension is a relief for many businesses. The deadline for filing the FLA return for FY 2025–26 has been extended from 15 July 2026 to 31 July 2026. Companies have 16 more days to prepare and report their foreign assets and liabilities. 

This additional time should be used to reconcile data, finalise financial information, and complete filing through the FLAIR portal. However, the extension applies only to the filing deadline, not to the filing obligation.So, businesses should check the applicability and file the return as soon as possible.  

Enterslice helps with FLA return preparation and the complete filing process. Companies can consider us their professional compliance support provider. So, contact us today for any kind of help with FLA returns. 

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