Budget 2026 Brings Relief for Taxpayers with Undisclosed Foreign Income and Assets:

Budget 2026 Brings Relief for Taxpayers with Undisclosed Foreign Income and Assets In Budget 2026, the finance minister Nirmala Sitharaman proposed a disclosure scheme to help small taxpayers rectify past non-disclosures of foreign income or foreign assets in a simplified way and obtain limited immunity from penalties and prosecution under the Black Money law. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, was introduced to make sure that all foreign income and assets were properly reported and taxed.

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Budget 2026: Single TDS Declaration to Depository for All Your Investments Starting April 2027

In 2015, the government gave a special one-time opportunity from July 1, 2015, to September 30, 2015, for people to voluntarily disclose any such hidden foreign assets they owned before March 31, 2015, by paying the required tax and penalty. Many small taxpayers have not followed the rules properly, mainly because they were unaware or forgot to report some of their foreign assets. This includes holdings arising from foreign employers (ESOPs or RSUs), old or low-balance foreign bank accounts from when they studied abroad, savings or insurance policies taken while living overseas, and assets held during foreign work assignments. In addition, data shared under the Automatic Exchange of Information system shows that many PAN holders have also failed to report their foreign financial assets.

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Union Budget 2026: FM Sitharaman Revises Tax Exemption Rules for Armed Forces Disability Pensions

FM proposed to introduce a time-bound scheme to help small taxpayers declare their foreign assets and income earned from abroad. If taxpayers pay the required tax or fee within the given time, they will get limited protection from penalties and legal action under the Black Money Act for what they declare. However, cases that involve serious crimes or ongoing prosecution will not be covered under this scheme. This scheme will come into effect from the date announced by the Central Government.