The Central Board of Direct Taxes (CBDT) notified the Foreign Assets of Small Taxpayers—Disclosure Scheme Rules, 2026 via a notification (No. 114/2026) and this will come into effect from August 16, 2026.
For those who don’t know, the Foreign Assets of Small Taxpayers—Disclosure Scheme is a one-time voluntary disclosure scheme contained in Chapter IV (sections 130 to 144) of the Finance Act, 2026. It enables eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee.
So this voluntary declaration which you can make under the Foreign Assets of Small Taxpayers—Disclosure Scheme needs to happen by December 31, 2026 as no declaration can be filed after this date. The entire process will be done online.
Also for the purpose of valuation of these undisclosed foreign assets, you need to consider the valuation date is March 31, 2026. This means whatever is the fair market value of assets which are proposed to be declared by you must be the value as of March 31, 2026.
Here are some FAQs to help you understand:
Who can use it by December 31, 2026
The eligible category of “assessee” who can use this scheme is:
(i) who is resident in India, (as per section 6 of the Income-tax Act, 1961), in the relevant previous year; or
(ii) who is 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, but was resident in India either-
(A) in the previous year to which the undisclosed foreign income under section 4 of the Black Money Act, 2015 relates, or
(B) in the previous year in which the undisclosed asset located outside India was acquired.
Moreover, a person who is a non-resident but was resident in India either (i) in the year to which the undisclosed income relates; or (ii) in the year in which the undisclosed asset was acquired can make a declaration under this scheme.
What is the amount payable for a declaration under Section 133 – (Table: Sl. No. 1)?
The total amount payable would be the aggregate of - (i) tax of 30% of the value of the undisclosed asset located outside India or 30% of the undisclosed foreign income declared; and (ii) amount equal to the tax paid in (i)
For example: Where an undisclosed foreign bank account is valued at Rs 60 lakh and undisclosed foreign income is Rs 20 lakh, the aggregate payable is Rs 48 Lakh as given below:
