India has opened a tax amnesty scheme allowing small taxpayers to declare certain previously undisclosed foreign income and assets, giving eligible individuals until December 31 to come forward under a one-time disclosure programme announced by the government.
The scheme, which opened on Sunday, applies to foreign assets worth up to 50 million rupees ($523,889) in certain circumstances. It is aimed at small taxpayers, including students and non-resident Indians, and was announced by India’s finance minister in the February 1 budget.
The programme distinguishes between foreign income that has not previously been disclosed and foreign assets that were acquired using income on which tax had already been paid but were subsequently omitted from tax returns.
Taxpayers with undisclosed foreign income of up to 10 million rupees ($104,778) can use the scheme until December 31, 2026. To regularise such income, they must pay tax at a rate of 30% together with an equal amount as a penalty.
The scheme also covers taxpayers who acquired foreign assets worth up to 50 million rupees but failed to report them in their tax returns, provided the income used to acquire those assets had already been taxed. In such cases, eligible taxpayers can make use of the one-time scheme by paying 100,000 rupees ($1,048).
The government has set March 31, 2026 as the date for calculating the market value of the assets covered by the disclosure programme.
The scheme provides a limited window for taxpayers with qualifying foreign income or assets to bring their tax affairs into compliance. Its focus on smaller taxpayers and relatively modest asset thresholds distinguishes it from a broader tax regularisation programme, while the fixed deadline places a clear time limit on disclosures.
For taxpayers whose circumstances fall within the specified categories, the programme offers a route to declare foreign holdings or income that had previously been omitted from tax filings. The government has set December 31 as the final date for using the scheme.
