Earn amnesty by disclosing assets abroad

In a major relief to taxpayers holding foreign assets, Budget 2026 has proposed a onetime six-month window for taxpayers to voluntarily declare any undisclosed foreign assets or foreign-sourced income and obtain amnesty from prosecution under the Black Money Act (BMA).

- Shipra Singh

Under tax laws, all foreign assets must be disclosed annually in the FA Schedule of ITR-2 or ITR-3, even if they generate no income. Failure to report, even though there is no evasion of tax, can attract a ₹10 lakh annual penalty and even imprisonment of up to seven years under BMA.