Key takeaways
- The Foreign Assets of Small Taxpayers – Disclosure Scheme 2026 has been open since 16 August 2026. The last date to file a declaration is 31 December 2026.
- It covers two categories of foreign assets or income that were not fully reported in India, up to Rs 1 crore and up to Rs 5 crore.
- A valid declaration with payment gives protection from further tax, penalty and prosecution under the Black Money Act for the declared amount.
- Foreign assets are valued as at 31 March 2026. Assets worth more than Rs 5 crore cannot use the scheme.
Many Indians who moved abroad, and many NRIs who have returned, hold small overseas bank accounts, shares or property that were never fully reported in India. The Foreign Assets of Small Taxpayers – Disclosure Scheme 2026 is a time-limited route to come clean. It sits in the Finance Act 2026, and the rules were notified as Notification No. 114/2026.
Foreign assets disclosure scheme: the key dates
| Item | Date |
|---|---|
| Scheme effective | 16 August 2026 |
| Last date to file a declaration | 31 December 2026 |
| Valuation date for foreign assets | 31 March 2026 |
The two categories
| Category | What it covers | Ceiling | Cost |
|---|---|---|---|
| Category 1 | Foreign assets or foreign income never disclosed or taxed in India | Up to Rs 1 crore | Tax at 30% plus an equal amount, about 60% in total |
| Category 2 | Assets bought from income earned while a non-resident, or from income already taxed in India but not reported in a return | Up to Rs 5 crore | A flat fee. Published summaries put it at Rs 1 lakh; confirm the figure in the CBDT rules and FAQs |
If your foreign assets are worth more than Rs 5 crore in total, the scheme is not available to you.
Why this matters for NRIs and returning Indians
- Category 2 specifically covers assets acquired from income earned while you were a non-resident. That is common for people who worked abroad and later returned.
- Residential status matters. Whether the scheme applies depends on your status in India in the relevant year and when the asset was acquired, so work this out before filing.
- Valuation is generally the higher of the acquisition cost and the open-market value on 31 March 2026, and a valuer’s report may be used.
- Once you pay, the declared amount is not added to your total income, and you are protected under the Black Money Act for that amount.
How the process works
- 1Work out which assets and income were not fully reported, and value them as at 31 March 2026.
- 2File the declaration electronically, which published summaries describe as Form 1, on or before 31 December 2026.
- 3The department issues a notice of the amount payable after verifying the declaration.
- 4Pay within the time allowed. Published summaries describe two months, extendable on payment of interest. Missing the final limit loses the benefit.
Not sure you qualify?
We review your overseas assets, your residential status and the right category before you file.
General information only, not advice for your situation. Rules, fees and deadlines change; we confirm what applies at your consultation.
Frequently asked questions
What is the Foreign Assets of Small Taxpayers Disclosure Scheme 2026?
What is the deadline?
Can NRIs use this scheme?
What if my foreign assets are above Rs 5 crore?
How are foreign assets valued?
Will I be prosecuted after a valid declaration?
Official sources
- Income Tax Department — latest news (Notification 114/2026)
- EY India — Foreign assets disclosure scheme operationalized
- Free Press Journal — Foreign Assets Disclosure Scheme 2026: who can declare, rates and deadlines
General information only, current at the date shown. It is not immigration advice for your circumstances. Information on this site is general guidance only and not legal, migration or investment advice. Rules, fees and occupation lists change frequently — always confirm current requirements with the relevant government authority before acting.
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Who will assist you
Sumit Kumar
Chartered Accountant & Australian Registered Migration Agent · MARN 1803385
I migrated from India to Melbourne as a skilled migrant in 2005 and became an Australian citizen in 2010, so I know first-hand what it takes to rebuild a career and a life in a new country — the paperwork and the waiting, and also the job search, the loneliness and the pressure of starting over far from home. Since 2013 I have advised individuals, families and businesses on migration and cross-border moves, combining migration casework with a Chartered Accountant's view of tax, funds and business structure.
