India opens tax amnesty for foreign assets up to 50 million rupees Sunday

India has opened a one-time compliance window for small taxpayers to regularize certain unreported foreign assets and income, with the scheme taking effect on August 16 and remaining available until December 31, 2026. The measure, first announced by Finance Minister Nirmala Sitharaman in her February 1 budget speech, applies to eligible foreign assets worth up to 50 million rupees and undisclosed foreign income of up to 10 million rupees. Taxpayers who bought foreign assets using income earned while non-resident, or with funds already taxed in India, can settle omitted disclosures for a flat 100,000 rupees. Those declaring undisclosed foreign income or assets that were never reported must pay 30% tax plus an equal penalty, for a total levy of 60% of the disclosed amount or value. Asset values will be determined as of March 31, 2026. The government has presented the program as a one-time chance to come into compliance without prosecution under the Black Money Act, which has governed offshore tax violations since 2015 and carries far steeper penalties. The scheme is aimed at small taxpayers, including students and non-resident Indians, while assets above the 50 million-rupee threshold remain subject to standard enforcement.

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