Foreign Assets Disclosure Scheme 2026: Eligibility, Tax, Last Date, & How to Apply

If you have a foreign account, property, shares, investments, or any other eligible overseas assets with you that you didn’t properly disclose in India, the Foreign Assets Disclosure Scheme 2026 is an Important news for you to know. 

The scheme is a one-time disclosure window for eligible taxpayers. It came into force on 16 August 2026, and the last date for filing the declaration is 31 December 2026. Depending on what is being disclosed, the applicable payment can be either tax plus an additional amount or a fixed fee.

But a lot of other questions are: What exactly is this scheme, are you eligible for the scheme, and how much will you have to pay to the Govt after the scheme. For NRIs in particular, the eligibility can depend on your residential status during the relevant period and the nature of the foreign asset or income. 

Let’s begin our blog and guide you through everything one by one. 

Quick Overview to Foreign Assets Disclosure Scheme 2026

The ₹1 crore and ₹5 crore limits apply to different types of declarations, so they should not be treated as one combined threshold.

What Is the Foreign Assets Disclosure Scheme 2026?

The Foreign Assets Disclosure Scheme 2026 is a one-time opportunity for eligible taxpayers to voluntarily disclose certain foreign assets or income that were not properly reported to the Indian tax authorities earlier.

Suppose, you have a foreign bank account, any property, investment, or other eligible foreign asset that you believe was supposed to be disclosed in India but still it is not, this scheme now gives you an opportunity to eligible taxpayers to come forward, make your required declaration and pay the applicable tax amount to the government. 

The rules became effective from 16 August 2026, with 31 December 2026 prescribed as the last date for filing a declaration.

How is it different from Schedule FA?

Simply understand the difference between both.

Schedule FA is part of your regular ITR, while the Foreign Assets Disclosure Scheme 2026 is a separate one-time disclosure mechanism.

Schedule FA is a section in your regular ITR where applicable taxpayers report details of certain foreign assets and foreign income.

Whereas this Asset disclosure scheme is meant for eligible taxpayers who want to voluntarily disclose certain previously undisclosed foreign assets or income under the special scheme and meet its specific conditions.

Simply put:

• Schedule FA = “I’m reporting my foreign assets in my ITR.”
• Foreign Assets Disclosure Scheme 2026 = “I didn’t report certain foreign assets earlier, and I now want to disclose them under this special scheme.”

What Benefits Do You Get After Disclosure?

The biggest reason taxpayers may consider this scheme is the immunity attached to a valid declaration and payment.

The key benefits are:

• No further tax on the income/assets covered by a valid declaration, as per the scheme.
• No penalty under the Black Money Act for the disclosed amount.
• No prosecution under the Black Money Act for the disclosed amount.
• It gives you a formal way to regularise eligible past non-disclosure instead of leaving the issue unresolved.

In simple terms: You disclose what was missed, pay what the scheme requires, and if your declaration is valid, you get the protection offered by the scheme from further tax, penalty and prosecution. 

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Who Is Eligible for Foreign Assets Disclosure Scheme 2026?

Eligibility depends on more than just your current residential status.

Who falls under this scheme:

• Resident individuals with eligible undisclosed foreign assets or income.
• Certain NRIs who are currently non-resident but were resident in India during the relevant period.
• NRORs who meet the scheme’s eligibility conditions.
• Taxpayers with certain undisclosed foreign assets acquired from income that was already taxed in India, subject to the applicable conditions.
• Taxpayers with eligible foreign assets/income that fall within the scheme’s prescribed value and other eligibility limits.

The official FAQ specifically says that a person who is currently non-resident or not ordinarily resident may make a declaration if they were resident in India during the relevant period specified by the scheme.

What Foreign Assets Can Be Disclosed?

The scheme covers specified categories of foreign assets and income. Depending on the case, this can include:

• Foreign bank accounts
• Foreign immovable property
• Foreign shares and securities
• Financial interests in overseas entities
• Certain insurance or financial assets
• ESOPs/RSUs and other foreign investments, where covered
• Other specified foreign assets
• Undisclosed foreign income

Examples of assets that may fall under the scheme

Old foreign bank account:
You had an overseas account that was not properly disclosed during a period when you were resident in India.

Foreign shares:
You hold overseas shares that were not reported as required.

Foreign property:
You own an overseas property and the case satisfies the scheme’s conditions.

Returning NRI’s foreign savings:
You earned or accumulated foreign savings while non-resident and later became resident, but the relevant foreign asset was not reported as required.

ESOPs or RSUs:
You received foreign-company shares through employment and did not properly report the foreign holding.

These are examples of situations that may need examination under the scheme. They should not be treated as automatic eligibility.

You May Also Read: How can NRIs save TDS on sale of property in India?

How Much Tax or Fee Will You Have to Pay?

This is one of the biggest questions taxpayers have.

The scheme broadly creates two different payment situations.

The first category is based on the aggregate value of specified undisclosed foreign assets and income, while the second category deals with specified foreign assets that fall within the separate conditions.

Example 1: Foreign asset worth ₹80 lakh

If the entire ₹80 lakh falls under the first category:

• Tax at 30% = ₹24 lakh
• Additional amount equal to tax = ₹24 lakh
• Total = ₹48 lakh

The prescribed ₹1 crore limit is still relevant here, assuming all other conditions are satisfied.

Example 2: Certain asset worth ₹4 crore

Suppose a foreign asset falls under the second category—for example, an asset acquired from income earned while the taxpayer was non-resident or from income already offered to tax—and all other conditions are satisfied.

If its value is within the ₹5 crore limit, the applicable amount is the prescribed ₹1 lakh fee.

This is why identifying the correct category before calculating the amount is important.

How to Apply for Foreign Assets Disclosure Scheme 2026?

The process is electronic and follows a sequence of forms.

Step 1: Prepare your foreign asset or income details

Before opening Form 1, collect the information you will need, such as:

• PAN
• Passport details, where applicable
• Type of foreign asset or income
• Country/location
• Relevant financial year
• Residential status during the relevant year
• Acquisition details
• Supporting documents
• Applicable valuation information

Don’t start with the form and then search for documents one by one. It is much easier to prepare the information first.

Step 2: File Form 1

Form 1 is the declaration.

You provide your basic details and specify what you are declaring.

The form asks for the relevant previous year, residential status during the year of acquisition or earning, nature of the asset/income and supporting documentation.

Step 3: Receive Form 2

After the declaration is processed, the income-tax authority issues an order in Form 2 determining the amount payable.

This is where the applicable tax, fee or other amount is formally determined.

Step 4: Make the required payment

The amount determined in Form 2 has to be paid electronically.

The initial payment deadline is generally two months from the end of the month in which Form 2 is received.

Step 5: Submit Form 3

After making the payment, you need to provide the payment intimation and proof electronically through Form 3.

Form 3 also captures details such as the amount paid, outstanding amount, delayed payment and applicable interest, where relevant.

Step 6: Receive Form 4

Once the declaration and payment satisfy the scheme requirements, the final certification is issued through Form 4.

In simple terms:

Form 1 → Declaration

Form 2 → Amount determined

Payment → Pay the amount

Form 3 → Payment intimation

Form 4 → Certification of validity and payment

What Is the Last Date for Foreign Assets Disclosure Scheme in 2026?

The basic timeline for the Foreign Assets Disclosure Scheme is:

16 August 2026 → Scheme becomes effective

31 December 2026 → Last date for filing declaration

But don’t confuse the declaration deadline with the payment timeline.

Once the income-tax authority issues the applicable order in Form 2, the payment is generally required within two months from the end of the month in which the order is received. If payment is delayed, interest at 1% per month or part thereof can apply within the additional period prescribed by the rules.

If the required amount is not paid within the permitted timeline, the declaration can become void.

Who Cannot Use the Foreign Assets Disclosure Scheme?

The scheme is not meant to cover every foreign-asset dispute.

Important exclusions include:

• Cases involving income or assets representing proceeds of crime where the specified proceedings under the Prevention of Money-laundering Act are involved
• Certain cases where assessment proceedings under the Black Money Act have already been completed
• Assets or income that do not satisfy the prescribed monetary limits
• Declarations that do not meet the scheme’s conditions
• False declarations or material misrepresentation

The scheme specifically excludes certain proceeds-of-crime cases and situations where assessment proceedings under the Black Money Act have already been completed.

A declaration containing material misrepresentation or suppression of facts can also become invalid.

So this is not a mechanism to simply report an asset and assume that every past issue disappears.

Can NRIs Use Foreign Assets Disclosure Scheme 2026?

Yes, certain NRIs can use the Foreign Assets Disclosure Scheme 2026 but not every NRI automatically qualifies.

Your current NRI status is not the deciding factor. Under the scheme, a person who is currently a non-resident or RNOR can still make a declaration if they were resident in India during the relevant period—for example, when the foreign income arose or when the foreign asset was acquired.

So, if you are an NRI today but had a foreign asset or foreign income from a period when you were resident in India, the scheme may be relevant to you.

In simple terms, an NRI may qualify if:

• You are currently an NRI or RNOR.
• You were resident in India during the relevant period.
• The foreign income or asset falls within the scheme.
• You satisfy the applicable value and other conditions.
• Your case does not fall under any of the scheme’s exclusions.

What About CRS, FATCA and AIS?

There is another reason foreign-asset reporting is getting more attention.

In July 2026, the Income Tax Department announced that taxpayers could view certain Foreign Asset Information received through CRS/FATCA in AIS on the e-filing portal.

That means taxpayers may see foreign financial information in AIS that they were not previously expecting.

What does this mean for you?

It does not mean that every foreign asset will automatically appear in AIS.

But foreign financial information can be exchanged through international reporting frameworks such as CRS and FATCA, and the Income Tax Department has now enabled a facility to view certain foreign asset information through AIS.

So if you have an old foreign bank account, investment or other reportable financial asset that was never properly considered in your Indian tax compliance, this is a good time to review the position rather than assume that the information is invisible.

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What Should You Check Before Filing for the Foreign Assets Disclosure Scheme?

Before making a declaration, keep these points ready:

• Your residential status for the relevant year
• Year in which the foreign asset was acquired
• Year in which foreign income was earned
• Nature of the foreign asset
• Country where the asset is located
• Fair market value as required under the scheme
• Source of funds
• Whether the income was already offered to tax
• Whether the asset was reported in earlier ITRs
• Relevant bank, investment, property or employment documents
• Whether any investigation or assessment is already pending
• Whether any exclusion applies

The rules prescribe 31 March 2026 as the valuation date and provide specific valuation methods depending on the type of asset.

Final Word

The Foreign Assets Disclosure Scheme 2026 is particularly relevant for taxpayers who have an old foreign-asset reporting issue that they have been carrying for years.

For NRIs and returning NRIs, the biggest mistake would be to look only at today’s residential status. The year in which the foreign income arose or the asset was acquired can matter just as much.

And before you do anything, separate three questions:

What is the asset?

When and how was it acquired?

What was your residential status and reporting position at that time?

Once those points are clear, it becomes much easier to determine whether the 2026 disclosure scheme is relevant, which category may apply and what payment could be involved.

Because the scheme is new and the rules are detailed, the declaration should be prepared against the latest notified rules and your actual documents—not just a generic online calculation.