Foreign Assets Disclosure Scheme 2026: ₹1 Cr/₹5 Cr Limits & Forms
Last reviewed: 11 September 2026.
Answer first: The Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 gives eligible taxpayers a one-time route to disclose specified foreign assets or foreign income. CBDT Notification No. 114/2026 dated 14 August 2026 notified the rules, effective 16 August 2026. The declaration deadline is 31 December 2026 and the valuation date is 31 March 2026.
Scheme at a glance
| Item | Current rule |
|---|---|
| Legal basis | Chapter IV, sections 130–144, Finance Act 2026 |
| Rules | Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 |
| Notification | 114/2026 dated 14 August 2026 |
| Effective | 16 August 2026 |
| Last date for declaration | 31 December 2026 |
| Valuation date | 31 March 2026 |
| Forms | Form 1, Form 2, Form 3 and Form 4 |
Two broad disclosure categories
The scheme separates cases according to the nature and source of the foreign asset or income. This distinction is critical because the financial consequence is very different.
| Category | Broad limit | Amount payable |
|---|---|---|
| Undisclosed foreign asset / foreign income covered by the first category | Combined FMV not exceeding ₹1 crore | 30% tax plus an amount equal to 100% of that tax — effectively 60% of the covered value |
| Specified foreign asset acquired from foreign income while non-resident, or from income already offered to tax but omitted from the relevant return schedule | Combined FMV not exceeding ₹5 crore | Fixed fee of ₹1 lakh where applicable under the scheme |
Do not choose a category merely because an overseas account appears in AIS. Establish residential status, source of funds, acquisition year, tax history and return-reporting history first.
What can be reported in Form 1?
The prescribed form covers categories including foreign bank accounts, immovable property, jewellery, artistic work, shares and securities, other assets and foreign income. Supporting documents may be required to establish acquisition, source and valuation.
Forms 1 to 4: workflow
- Form 1: the taxpayer files the electronic declaration with asset/income details, valuation and verification.
- Form 2: the income-tax authority determines the amount payable.
- Form 3: the declarant intimates payment and provides proof.
- Form 4: the authority certifies validity of the declaration and payment.
Payment timeline
The prescribed Form 3 records an initial due date of two months from the end of the month in which Form 2 is received. The rules also contemplate a limited additional period, with interest at 1% for every month or part thereof for the delayed period, subject to the scheme conditions. Payments may be made in parts, but the statutory outer timeline should not be missed.
How foreign assets are valued
Rule 3 contains asset-specific valuation rules. The valuation date is 31 March 2026. For some assets, valuation can require comparison of acquisition cost and market value supported by appropriate evidence. Where valuation is not carried out in circumstances covered by the rule, the prescribed form notes that indexed cost of acquisition may be deemed to be fair market value. Bank accounts have their own computation approach.
Practical document checklist
- PAN and passport details where relevant
- Residential-status history for each relevant year
- Foreign bank statements
- Purchase/acquisition documents
- Evidence of source of funds
- Past Indian income-tax returns and foreign-asset schedules
- Proof that income was already offered to tax, where that category is claimed
- Valuation working and supporting report where required
- AIS foreign-asset information as a reconciliation input, not as the sole legal conclusion
What immunity does a valid declaration provide?
Subject to satisfying the scheme, a valid declaration and payment can provide the prescribed immunity in respect of the declared asset/income under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The exact protection depends on the statutory conditions, so taxpayers with investigations, proceedings or other exclusions should obtain case-specific advice before filing.
Frequently asked questions
What is the last date for the 2026 foreign-assets disclosure scheme?
The declaration deadline is 31 December 2026.
What is the valuation date?
The rules specify 31 March 2026.
What forms are used?
Forms 1 to 4 cover declaration, determination, payment intimation and final certification.
Is every foreign asset eligible?
No. Eligibility depends on the statutory category, value limits, source, residential status and exclusions. Review the Finance Act and rules before filing.
Does AIS showing a foreign account automatically mean I should file under the scheme?
No. AIS is a reconciliation input. First determine whether the asset/income was taxable or reportable and whether the scheme conditions apply.
Official source
Income Tax Department e-Filing Portal — Notification No. 114/2026 and scheme updates
This article is a compliance explainer, not a substitute for reviewing the taxpayer's facts, Finance Act 2026 and the notified rules.
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