Forgot Foreign Assets in ITR? ₹10L Penalty Waived Till Dec

CBDT is giving taxpayers a one-time window until December 31 to declare missed foreign assets — like overseas bank accounts or ESOPs — and avoid Black Money Act penalties. But you still have to pay tax and interest.

Here's what happened: CBDT has announced a limited-period relief window until 31 December 2025 for taxpayers who missed disclosing foreign assets — including bank accounts, ESOPs, and property — in their ITR.. The Black Money (Undisclosed Foreign Income and Assets) Act normally imposes a minimum penalty of ₹10 lakh per undisclosed asset, plus possible criminal prosecution — this window suspends that for eligible filers.. Relief is targeted at small taxpayers, returning NRIs, and salaried employees with employer-granted foreign stock options, not high-value asset hiders — full tax and interest on the assets still apply..

What you should do: Check your ITR Schedule FA (Foreign Assets) — if you hold or held any overseas bank account, shares, ESOPs, RSUs, or property and left it blank, file a revised or updated ITR before 31 December 2025.. Calculate and pay the full tax plus applicable interest on any income linked to the foreign asset before filing — the penalty waiver only holds if the tax due is settled, not just declared.. If you received ESOPs from a foreign-listed employer, ask your company's HR or stock plan administrator for a full vesting and sale history so you can accurately fill Schedule FA and Schedule FSI in your ITR..

Even a zero-balance foreign bank account you forgot to close must be declared under Schedule FA — CBDT treats non-disclosure of the account itself as a violation, regardless of the balance.

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