Foreign Assets of Small Taxpayers Disclosure Scheme: rules and forms notified; last date is 31 December 2026
The Scheme’s rules, notified on 14 August 2026 and in force from 16 August, fix 31 March 2026 as the valuation date, set out how each foreign asset is valued, and prescribe Forms 1 to 4 for the declaration, the order, the payment and the final certificate.
Key facts
- Published
- 14 August 2026
- Section
- Income Tax
- What it is
- New facility
- In force
- Declare by 31 December 2026
- Who it affects
- Taxpayers with undisclosed foreign assets or foreign income within the Scheme’s limits
In 30 seconds
- Rules made under section 143 of the Finance Act, 2026; G.S.R. 732(E) dated 14 August 2026.
- Valuation date: 31 March 2026. Last date: 31 December 2026.
- Declaration in Form 1, filed electronically; ceilings of ₹1 crore (Table Sl. No. 1) and ₹5 crore (Table Sl. No. 2) of section 133.
- Payment within two months from the end of the month of the order; after that, interest at 1% a month, for at most a further period that ends four months from the end of that month.
हिंदी में सार
छोटे करदाताओं की विदेशी संपत्ति के खुलासे की स्कीम के नियम 14 अगस्त 2026 को अधिसूचित हुए और 16 अगस्त से लागू हैं। मूल्यांकन की तारीख 31 मार्च 2026 है और स्कीम की आख़िरी तारीख 31 दिसंबर 2026। घोषणा Form 1 में ऑनलाइन होगी; सीमा ₹1 करोड़ (आय + संपत्ति) और ₹5 करोड़ (संपत्ति) है। आदेश के महीने के अंत से दो महीने में भुगतान करना है, उसके बाद 1% प्रति माह ब्याज लगेगा।
What has been notified
The Central Government has made the Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026 under section 143 of the Finance Act, 2026. They came into force on 16 August 2026. The declaration goes to the Principal Director General or Director General of Income-tax (Systems).
The limits for a declaration
| Section 133 Table | What is declared | Aggregate must not exceed |
|---|---|---|
| Sl. No. 1 | Undisclosed income and undisclosed assets | ₹1 crore |
| Sl. No. 2 | Undisclosed assets | ₹5 crore |
The rules give illustrations: a foreign bank account worth ₹55 lakh on 31 March 2026 plus foreign income of ₹25 lakh, ₹80 lakh in all, is eligible; a foreign property of ₹90 lakh plus foreign income of ₹30 lakh, ₹1.20 crore in all, is not.
How assets are valued
- Bullion, jewellery, artistic work and immovable property: the higher of cost of acquisition and the open-market price on the valuation date, for which a report may be obtained from a valuer recognised by the government of the foreign country. Where that valuation is not carried out, the indexed cost of acquisition is taken.
- Quoted shares and securities: the higher of cost of acquisition and the average of the lowest and highest price quoted on an established securities market on the valuation date. Unquoted equity shares follow a book-value formula given in the rules.
- Bank account: the sum of all deposits made since the account was opened. A deposit made out of an earlier withdrawal from the same account is not counted again.
- The value is converted into rupees at the exchange rate of 31 March 2026.
The four forms and the payment clock
- Form 1 — the declaration, made electronically.
- Form 2 — the income-tax authority’s order stating the amount payable.
- Form 3 — intimation of payment, with proof.
- Form 4 — order certifying the declaration and the payment, within one month from the end of the month in which the intimation is submitted.
The rules’ own illustration: for an undisclosed foreign bank account valued at ₹80 lakh, the amount payable under Table Sl. No. 1 is ₹48 lakh. If the order is passed on 22 September 2026, payment by 30 November 2026 carries no interest. Later payment carries interest of 1% for each month or part of a month. The additional period ends on 31 January 2027; a payment after that does not get the benefit of the Scheme.
A safeguard on valuation
If the fair market value of an asset other than a bank account, as declared, differs from the value later determined by the Assessing Officer, the declaration is not treated as invalid on that ground alone, provided the difference does not exceed 20% of the declared value.
How it got here
- Rules notified
- Rules come into force
- Last date under the Scheme
Questions and answers
What is the valuation date?
31 March 2026. Values in foreign currency are converted into rupees at the exchange rate of that date.
How is a foreign bank account valued?
By adding all deposits made in the account since it was opened. A deposit made from an amount earlier withdrawn from the same account is not counted again.
What if the payment is late?
Payment is due within two months from the end of the month of the order. After that, interest of 1% for every month or part of a month applies. In the rules’ illustration an order of September 2026 can be paid with interest up to 31 January 2027; beyond that the benefit of the Scheme is not available.
Published 14 August 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.