New Delhi, Feb. 1 -- In a major relief to taxpayers holding foreign assets, Budget 2026 has proposed a one-time 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).

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 Rs.10 lakh annual penalty and even imprisonment of up to seven years under BMA.

The budget has introduced a one‑time, six-month Foreign Assets of Small Taxpayers-Disclosure Scheme, 2026 (FAST-DS) that allows taxpayers to disclose foreign asse...