Economic Offences Update No. 6

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The Update covers the recently operationalized Foreign Assets of Small Taxpayers Disclosure Scheme. The Foreign Assets of Small Taxpayers Disclosure Scheme Rules, 2026 lay down the valuation framework, declaration process, prescribed forms and other procedural requirements for implementation of the Scheme.

Elaborately discussing the key highlights of the Rules, this Update by the LKS Economic Offences Team, also provides their relevant comments. Among other comments, the Team highlights that before making a declaration, taxpayers should carefully evaluate the implications under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (‘BMA’), Prevention of Money Laundering Act, 2002 (‘PMLA’), and Foreign Exchange Management Act, 1999 (‘FEMA’).