Indian Governments Foreign Asset Disclosure Scheme Receives Strong Response
The Indian governments foreign asset disclosure scheme has seen significant participation, with over 1,100 taxpayers declaring their assets.
New Delhi, October 26 (Daily Kiran) : The Indian government’s initiative, the “Foreign Asset Disclosure Scheme for Small Taxpayers, 2026,” has garnered a substantial response, with approximately 1,100 taxpayers reporting their foreign assets so far. This information was shared by sources on Monday.
The scheme provides taxpayers with a one-time opportunity to disclose previously unreported foreign assets and income. To facilitate this process, the tax department has launched a feature on its e-filing portal. This allows taxpayers to view information related to their foreign assets linked to their PAN, which has been reported under the Automatic Exchange of Information (AEOI) framework, commonly known as CRS/FATCA. Taxpayers can log in to the e-filing portal to download this information for the years 2022 to 2024.
Sources indicated that the portal displays only the information received from AEOI signatories under the CRS/FATCA framework. The department also receives data through other multilateral frameworks, but this information may not be shown on the portal due to various risk factors or confidentiality commitments.
Additionally, the department gathers information and intelligence from other sources. In a high-level meeting on October 23, 2026, it was decided that this information could be shared with relevant taxpayers wherever feasible, allowing them to take advantage of the scheme.
Recently, the government has reached out to select taxpayers who have invested in residential or commercial properties in the United Arab Emirates (UAE). To raise awareness among taxpayers, employers, educational institutions, professional bodies, and industry associations, outreach programs have been developed. Furthermore, the Central Board of Direct Taxes (CBDT) has established a committee under the Principal Chief Commissioner to assist taxpayers with their concerns and queries.
This scheme establishes a clear timeline for eligible disclosures. Under its provisions, a tax of 30% on the fair market value (FMV) and an equivalent penalty must be paid. A key feature of this scheme is that it is entirely online, based on trust, and requires self-declaration.
By making a valid declaration, taxpayers can avoid further scrutiny, penalties, and legal action under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Taxpayers can benefit from this scheme until December 31, 2026.
