Declare Foreign Assets: New Indian Govt Scheme Opens Aug 16, 2026

Hey, if you’ve ever wondered about those foreign assets or income you might have, the Indian government is giving you a fresh start. They’ve just introduced a new, one-time voluntary disclosure scheme for previously undisclosed foreign income or assets, kicking off on August 16, 2026.

A Fresh Start for Foreign Holdings

This new initiative is officially called the Foreign Assets of Small Taxpayers—Disclosure Scheme Rules, 2026. It’s a special opportunity for you to come clean about any foreign financial interests you haven’t declared before.

The scheme is outlined in Chapter IV (sections 130 to 144) of the Finance Act, 2026. It covers undisclosed foreign assets, undisclosed foreign income, or even undeclared foreign assets.

Who is Eligible to Disclose?

This isn’t just for everyone; specific rules apply to who can participate in this scheme. You’ll need to check your residency status carefully based on tax laws.

The government has clearly defined the eligibility criteria for this disclosure opportunity. It aims to cover various taxpayer situations.

• You are a resident in India as per section 6 of the Income-tax Act, 1961, in the relevant previous year.
• You are a non-resident or resident but not ordinarily resident (RNOR) as per section 6(6) of the Income-tax Act, 1961, in the relevant previous year, provided you were resident in India in specific past years.

The non-resident/RNOR condition applies if you were resident in the previous year related to the undisclosed foreign income under section 4 of the Black Money Act, 2015. It also applies if you were resident in the previous year when the undisclosed asset located outside India was acquired.

Understanding the Payment Structure

When you decide to declare under this scheme, there’s a specific amount you’ll need to pay. It’s a combination of tax and an additional fee, designed to bring your foreign holdings into compliance.

The total amount you’ll be required to pay under this scheme is an aggregate of two components. It’s crucial to understand both parts.

• A 30% tax on the value of the undisclosed asset located outside India or the undisclosed foreign income you declare.
• An additional amount that is equal to the tax paid.

This means your total payment will effectively be double the 30% tax on the declared value.

This scheme offers a structured way to regularize your foreign financial interests. If this applies to you, marking August 16, 2026, on your calendar is a smart move to ensure compliance with tax regulations.