India opens foreign asset disclosure window for small taxpayers

Two limits apply. The aggregate value of the undisclosed asset, measured as of March 31, 2026, and the undisclosed foreign income together must not exceed ₹1 crore. The total value of all assets located outside India must not exceed ₹5 crore. Taxpayers above either ceiling cannot file.

The 30% tax and the equal payment

The bill works out to 30% of the declared value plus an amount equal to the tax, making the effective charge 60%. For a foreign bank account worth ₹60 lakh with undisclosed foreign income of ₹20 lakh, the total payable is ₹48 lakh. The account portion is ₹36 lakh and the income portion is ₹12 lakh.

Payment follows a set sequence. The department issues an assessment order within one month of receiving the declaration. The taxpayer then has two months to pay, and can get a further two months' extension. Simple interest accrues at 1% for every month or part of a month of delay.

Declared income and assets get immunity from further tax and penalty, and from prosecution under the Black Money Act, 2015. The declared amounts stay out of total income under the Income-tax Act, 1961 and the Black Money Act.

Targeted taxpayers are students, young professionals, tech employees and relocated NRIs, the groups named in the budget speech. The ₹5 crore ceiling keeps it to modest holdings rather than large offshore structures. For tax advisors, the scheme sets a defined workflow: value the assets as of March 31, 2026, compute the 30% base, file before Dec. 31, 2026, then meet the two-month payment window after the order. Missing the deadline leaves a taxpayer under the Black Money Act's regular provisions.