Income Tax Department launches disclosure scheme starting August 16, 2026
The Income Tax Department just launched a new disclosure scheme (starting August 16, 2026) for eligible small taxpayers with undisclosed foreign assets or income.
If you have undisclosed overseas assets up to ₹5 crore or undisclosed foreign income, with the aggregate value of the undisclosed asset located outside India as of March 31, 2026, and the aggregate value of the undisclosed asset located outside India as of March 31, 2026, and the undisclosed foreign income must not exceed ₹1 crore, you can come clean without further tax or penalty, and from prosecution under the Black Money Act, 2015, in respect of the income or asset so declared.
Pay 30% tax plus matching penalty
Aimed at students, young professionals, relocated NRIs, and others with smaller undeclared foreign holdings, the scheme takes effect from Sunday, August 16, 2026, and declarations can be made till December 31, 2026.
If you declare now, you'll pay a 30% tax plus a matching penalty on what you disclose, for example, if an undisclosed foreign bank account is valued at ₹60 lakh and undisclosed foreign income is ₹20 lakh, total payable would be ₹48 lakh.
The big plus: if you use this window, you're safe from prosecution under the Black Money Act, 2015, and from any further tax or penalty, in respect of the income or asset so declared.