Have overseas assets? Check these new tax rules

The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, introduced by the Indian government on August 16, 2026, is a one-time voluntary disclosure scheme aimed at eligible taxpayers. This scheme allows taxpayers to voluntarily disclose undisclosed foreign assets and income, subject to specified monetary limits. The scheme remains open until December 31, 2026, and covers foreign assets and income with monetary values up to ₹1 crore or ₹5 crore, respectively.

Eligible taxpayers under the scheme are those who are residents of India, as per the Income-tax Act, 1961, or non-residents and resident but not ordinarily residents (RNOR) who meet certain residency conditions. A declaration can be made for any previous year if the undeclared foreign income or asset fails to appear in the returns filed, if the taxpayer has failed to disclose the asset or income in a return filed before the scheme commenced, or if the asset or income has escaped assessment under section 147 of the Income-tax Act, 1961.

The scheme recognizes two categories of declarations: undisclosed assets located outside India or undisclosed foreign income that was not offered to tax, and assets located outside India that were already offered to tax but not declared. The valuation date for the scheme is March 31, 2026, and the fair market value of the assets proposed to be declared must be computed as of this date.

The income-tax authority administering declarations under the scheme is the Principal Director General of Income-tax or the Director General of Income-tax, as applicable. The entire process, including filing and payment, will be conducted online.