GUWAHATI: The Central Board of Direct Taxes (CBDT) has opened a one‑time disclosure window under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, allowing eligible taxpayers to declare certain undisclosed foreign assets or foreign income and obtain immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, subject to the scheme’s conditions. The scheme came into force on August 16, 2026, and declarations may be filed until December 31, 2026.
Under the scheme’s first category (covered by Section 133), taxpayers declaring an undisclosed asset located outside India or undisclosed foreign income must pay tax at 30% of the declared value plus an additional amount equal to the tax, effectively making the total payable 60% of the declared value. The combined value of such undisclosed foreign assets as on March 31, 2026, and undisclosed foreign income must not exceed ₹1 crore to qualify under this category.
To illustrate, an undisclosed foreign bank balance of ₹60 lakh would attract ₹18 lakh in tax and another ₹18 lakh as the additional amount, bringing the total to ₹36 lakh. Undisclosed foreign income of ₹20 lakh would attract ₹6 lakh plus an additional ₹6 lakh, totaling ₹12 lakh. If both are declared together (combined value ₹80 lakh), tax would be ₹24 lakh and the additional amount another ₹24 lakh, making the total payment ₹48 lakh.
The scheme also covers certain foreign assets acquired from income on which tax has already been paid, including assets acquired while the taxpayer was a non‑resident or a resident but not ordinarily resident, provided these assets were not disclosed in prescribed return schedules. For this second category the value of the foreign asset must not exceed ₹5 crore and a prescribed flat payment of ₹1 lakh applies.
Declarations must be filed electronically using Form 1, accompanied by supporting documents and valuation reports where applicable; March 31, 2026, is the valuation date for assets under the scheme. After verification, the income‑tax authority will communicate the amount payable through Form 2. Taxpayers typically have two months to pay, with an additional grace period of up to two months available subject to simple interest of 1% for each month or part of a month of delay.
The scheme is presented as a one‑time opportunity for eligible taxpayers to voluntarily regularise specified undisclosed foreign assets and income that were not reported in tax returns; eligibility, prescribed disclosures and the benefits granted will depend on compliance with the scheme’s conditions and the amount determined by tax authorities.
Original Source: https://www.guwahatiplus.com/india/cbdt-opens-one-time-window-for-small-taxpayers-to-disclose-undisclosed-foreign-assets-1
Category: India
Tags:
Publish Date: 2026-08-16 13:43:00
