Those eligible taxpayers, who failed to declare a certain undisclosed foreign income or asset have got another chance from the government.

In order to make it a speedy process, 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.

It pertains to assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee.

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.

Those eligible to declare their foreign scheme under this scheme are resident in India, (as per section 6 of the Income-tax Act, 1961), in the relevant previous year; 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.

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.

As per the rule, 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).