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India's Foreign Asset Disclosure: Rules Explained
16 Aug
Summary
- New rules allow disclosure of undeclared foreign assets until December 2026.
- Disclosure costs range from ₹1 lakh to 60% of the asset's value.
- The scheme distinguishes between undisclosed income and previously taxed foreign assets.
India has opened a disclosure window for taxpayers with undeclared foreign assets and income, effective from August 16, 2026, with a deadline of December 31, 2026. The scheme distinguishes between undisclosed foreign income and assets acquired from income already taxed in India or earned while the taxpayer was a non-resident.
For eligible assets valued up to ₹5 crore, a minimal fee of ₹1 lakh may apply. This route is for assets acquired from income earned abroad while non-resident, or from income already taxed in India, but not subsequently disclosed. However, undisclosed foreign assets or income, with an aggregate value not exceeding ₹1 crore, will incur a payment of 60% of their combined value.
The valuation date for these assets is set as March 31, 2026. The process is entirely electronic, requiring taxpayers to establish asset values, confirm eligibility, and submit declarations. This initiative provides a formal mechanism for taxpayers to rectify past foreign asset reporting omissions.
