The Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 is in Chapter IV of the Finance Act, 2026. Its rules (Notification No. 114/2026, G.S.R. 732(E), dated 14 August 2026) came into force on 16 August 2026 and set 31 December 2026 as the last date for declarations.
Who may find it relevant
It is aimed at smaller cases: for example, residents who hold shares under an overseas employer's stock plan, or a bank account from years spent working abroad, and who did not report them in the foreign assets schedule of their return. It is also open to people who are now non-resident, if they were resident in India when the income arose or the asset was acquired.
| Category | Limit | Amount payable |
|---|---|---|
| Undisclosed foreign income or assets | Aggregate value up to ₹1 crore | 30% tax plus an equal amount as penalty (60% in effect) |
| Foreign assets bought from income already taxed, or earned while non-resident, but not reported | Value up to ₹5 crore | Flat fee of ₹1 lakh |
Above these limits the category cannot be used. 31 December 2026 is the last date to declare; the amount payable is paid after the Department's order, within the time the order allows.
What to do
- List every foreign account, security, property and income source, with the year acquired and whether it was reported in earlier returns.
- Check which category of the scheme, if any, applies, and the amount payable under it, against the notification.
- Decide before the window closes on 31 December 2026, as the scheme is one-time.