Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026

Last updated: 18 August 2026

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The Ministry of Finance has introduced the Foreign Assets of Small Taxpayers- Disclosure Scheme Rules, 2026, effective from 16th August 2026. These rules, enacted under the Finance Act, 2026, outline the procedures for disclosing foreign assets held by small taxpayers. Key definitions are provided, including 'indexed cost of acquisition' and 'valuation date' (31st March 2026). The last date for compliance under this scheme is 31st December 2026.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 14th August, 2026
INCOME-TAX

G.S.R. 732(E).— In exercise of the powers conferred by section 143 of the Finance Act, 2026 (4 of 2026), the Central Government hereby makes the following rules, namely:―

1. Short title and commencement.– (1) These rules may be called the Foreign Assets of Small Taxpayers- Disclosure Scheme Rules, 2026.
(2) They shall come into force on the 16th day of August, 2026.

2. Definitions.– (1) In these rules, unless the context otherwise requires,–
(a) “Act” means the Finance Act, 2026 (4 of 2026);
(b) “Indexed cost of acquisition” shall have the same meaning as assigned to it in section 48 of the Income-tax
Act, 1961 (43 of 1961);
(c) "Form" means a Form appended to these rules;
(d) “section” means a section of the Finance Act, 2026 (4 of 2026) in Chapter IV; and
(e) “valuation date” means the 31st day of March, 2026.

(2) Words and expressions used in these rules and not defined but defined in the Act or the Income-tax Act, 1961 (43 of 1961) or the Income-tax Act, 2025 (30 of 2025) or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015) shall have the meanings respectively assigned to them in those Acts.
(3) For the purposes of the Act and these rules, “income-tax authority” shall mean the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be.
(4) For the purposes of the Act and these rules, “last date” shall mean the 31st day of December, 2026.

FAQ :

These rules come into force on the 16th day of August, 2026.

The 'valuation date' is defined as the 31st day of March, 2026.

The 'last date' for compliance under these rules is the 31st day of December, 2026.

The Central Government makes these rules in exercise of the powers conferred by section 143 of the Finance Act, 2026 (4 of 2026).

For the purposes of the Act and these rules, 'income-tax authority' means the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be.