The FLA Return (Foreign Liabilities and Assets Return) is an annual return that every Indian resident entity holding outstanding foreign direct investment (FDI) or overseas direct investment (ODI) must file with the Reserve Bank of India under the Foreign Exchange Management Act, 1999. Notified by A.P. (DIR Series) Circular No. 45 dated 15 March 2011, the entity reports its outstanding foreign assets and liabilities as of 31 March each year on the RBI’s FLAIR portal.
Definition
The FLA Return, formerly known as the Annual Return on Foreign Liabilities and Assets, is the instrument the RBI uses under FEMA, 1999, to gauge India’s stock of cross-border investments. It is a position-based return: it records the closing balances of inward investment (foreign liabilities) and outward investment (foreign assets) as they appear on the entity’s balance sheet as at 31 March, not the individual transactions that took place during the year.
Governing Provision
The Reserve Bank of India administers the FLA Return under the Foreign Exchange Management Act, 1999. The reporting obligation was first notified through A.P. (DIR Series) Circular No. 45 dated 15 March 2011 and is now consolidated in the RBI Master Direction – Reporting under FEMA, 1999. Late filing attracts a Late Submission Fee under A.P. (DIR Series) Circular No. 16 dated 30 September 2022, and non-filing is a contravention under Section 13 of FEMA, 1999.
Key Features
A handful of features separate the FLA Return from the transaction-based filings under FEMA. The entity files itself, once a year, rather than routing it through an Authorised Dealer bank, and it captures balances rather than flows. The points below set out what the return covers, who carries the obligation, and the timeline and fee that govern it, each resting on the FEMA 1999 reporting framework administered by the RBI.
| No | Key Feature | Description |
|---|---|---|
| 1 | Position-based, not transactional | The FLA Return reports outstanding foreign assets and liabilities as of 31 March, unlike the transaction-level FC-GPR and FC-TRS. |
| 2 | Entities affected by FDI/ODI | The FLA Return is filed by Indian companies, LLPs, partnership firms and SEBI-registered AIFs that hold any outstanding FDI or ODI, with no turnover threshold. |
| 3 | Online Filing | Submitted online on the RBI’s FLAIR portal, directly with the RBI; offline and email filing are discontinued, except that the Excel route is retained for AIFs. |
| 4 | Due Date | Due by 15 July for the year ended 31 March, with the audited revised return permitted up to 30 September where provisional figures were filed. |
| 5 | Late Filing | Late filing carries a flat Late Submission Fee of ₹7,500 per return; continued default constitutes a FEMA contravention and attracts heavier penalties. |
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Related Terms
- FLAIR Portal: the RBI system on which the return is filed.
- Foreign Direct Investment (FDI)
- Overseas Direct Investment (ODI)
- Late Submission Fee (FEMA): the ₹7,500 delayed-reporting fee.
Frequently Asked Questions
Is the FLA Return the same as FC-GPR or FC-TRS?
Which entities must file the FLA Return?
Must I file if there were no transactions during the year?
References
- Foreign Exchange Management Act, 1999
- A.P. (DIR Series) Circular No. 45 dated 15 March 2011.
- Master Direction – Reporting under FEMA, 1999 (RBI).
- A.P. (DIR Series) Circular No. 16 dated 30 September 2022 (RBI/2022-23/122).
- Section 13, Foreign Exchange Management Act, 1999
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Author Bio
Meet Sanjeev Kumar, a distinguished advocate before the Supreme Court of India, High Courts, and National Tribunals. Founding Partner of Juriskps Law Offices, a premier law firm, he specializes in commercial, corporate, tax, arbitration, and IPR matters. His incisive legal insights enrich Setindiabiz’s blog with expert commentary.
