Income Tax Department organises Outreach Programme on Foreign Assets of Small Taxpayers Disclosure Scheme 2026 in City

Kolkata, November 5, 2026

The Income Tax Department, Government of India, organised an outreach programme on the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, in Kolkata today to create awareness among taxpayers and tax professionals about the provisions of the scheme, eligibility criteria and procedures for voluntary disclosure of undisclosed foreign assets and income.
The programme was attended by chartered accountants, tax practitioners, advocates and taxpayers. The session included an interactive session to address queries on the scheme and its compliance requirements.
Addressing the participants, Shri Alok Singh, Chief Commissioner of Income Tax-2, Kolkata, explained that, the scheme provides an opportunity for eligible taxpayers to voluntarily disclose certain undisclosed foreign assets and foreign income, including immovable property and overseas bank accounts. He also clarified that persons who are currently non-residents may be eligible in specified circumstances, including where they were residents of India in the relevant year of earning the undisclosed income or acquisition of the foreign asset.
Shri Singh stated that non-disclosure of foreign assets and income may attract penalties and other serious legal consequences. The scheme has been introduced to facilitate voluntary compliance by small taxpayers and provide an opportunity to make disclosures subject to the prescribed tax or fee. He noted that awareness and outreach efforts are contributing to an increase in disclosures. He also thanked the organisers for providing a platform for direct interaction with taxpayers and tax professionals and indicated that similar awareness programmes may be organised in future.
Key Provisions of the Scheme:
The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, is a one-time 2voluntary disclosure facility under Chapter IV, Sections 130 to 144 of the Finance Act, 2026. The scheme came into force on August 16, 2026, and declarations can be filed up to December 31, 2026. The entire declaration process is online.
The scheme provides for two categories of disclosure:
* Undisclosed foreign assets or foreign income not previously offered to tax: The aggregate value of the undisclosed foreign asset and foreign income must not exceed ₹1 crore. The amount payable comprises tax at 30 per cent of the value of the asset or income declared, along with an additional amount equal to the tax payable.

* Foreign assets already offered to tax or acquired during a period of non-residence but not disclosed in the relevant return schedule: The aggregate value of such assets must not exceed ₹5 crore. A flat fee of ₹1 lakh is payable.
The valuation date for assets under the scheme is March 31, 2026. The fair market value is to be determined in accordance with the prescribed valuation rules. Eligible declarants include residents of India and certain non-residents or residents but not ordinarily resident (RNOR) persons who meet the specified residential conditions.
Declarations are required to be filed electronically in Form 1, along with supporting documents and valuation reports, wherever applicable. Following verification, the income-tax authority communicates the amount payable through an order in Form 2. Payment is ordinarily required within two months from the end of the month in which the order is received. A further period of up to two months is permitted with simple interest at one per cent for every month or part of a month of delay. The payment is intimated electronically in Form 3, following which the authority issues confirmation in Form 4.
A valid declaration followed by payment provides immunity from further tax or penalty and prosecution under the Black Money Act, 2015, in respect of the income or asset declared, subject to the conditions of the scheme. The scheme does not cover assets or income representing proceeds of crime under the Prevention of Money-laundering Act, 2002, or cases where assessment proceedings under the Black Money Act, 2015, have already been completed.
The outreach programme sought to improve awareness of the scheme and facilitate informed compliance through direct engagement with taxpayers and professionals.
 

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SSS/S Saha/Kol/05.11.2026……