Key facts
- India's tax amnesty scheme for small taxpayers to declare undeclared foreign assets opens August 16, 2026, and runs until December 31, 2026.
- Taxpayers with undisclosed foreign income up to 10 million rupees must pay 30% tax and a 30% penalty.
- Taxpayers with foreign assets valued up to 50 million rupees, which were already taxed but not reported, can declare them by paying a flat fee of 100,000 rupees.
- The valuation date for these assets is March 31, 2026.
- The scheme targets small taxpayers, including students and non-resident Indians.
India's government has introduced a voluntary disclosure scheme, the Foreign Assets of Small Taxpayers—Disclosure Scheme, to allow small taxpayers to declare undeclared foreign assets and income. The scheme, announced in the February budget and notified by the Central Board of Direct Taxes (CBDT), aims to bring individuals, including students and non-resident Indians, into the tax net for their offshore holdings.
The scheme will be available from August 16, 2026, until December 31, 2026. For undisclosed foreign income up to 10 million rupees, taxpayers must pay a 30% tax and an equal amount as a penalty, totaling 60% of the declared income. For foreign assets valued up to 50 million rupees that were acquired while the taxpayer was a non-resident or were already taxed but not reported, a flat fee of 100,000 rupees is required. The market value of these assets will be determined as of March 31, 2026.
This one-time opportunity allows eligible taxpayers to regularize their tax position without facing penalties or prosecution, provided they meet the specified thresholds and conditions. The entire process will be conducted online.