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Budget Introduces 6-Month Window to Declare Foreign Assets, Settle Tax Disputes
The government has provided a six-month window for declaring foreign assets, during which they can be legalized with tax and penalties. Now, updated returns can be filed even if an investigation is underway. TDS will be levied on contractors of construction workers. The new Income Tax Code will come into effect on April 1st, which will result in changes to the ITR form and set new deadlines.
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“Budget Introduces 6-Month Window to Declare Foreign Assets, Settle Tax Disputes”
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en.sangritimes.com
2 Feb 2026
Several provisions have been made in the budget to reduce income tax-related disputes. The government is introducing a six-month period in which people holding assets abroad can disclose and legalize them by paying taxes.
However, now even if a departmental inquiry has commenced with regard to an individual’s ITR, that individual can file an updated return. Only those individuals can file an updated return whose departmental investigation has not commenced.
According to the budget, if someone has property or income worth Rs 1 crore located abroad and has not disclosed it to the Income Tax Department, they can be exempted from all legal action by paying 30 percent of the property's market value as tax and 30 percent as a penalty.
