{"id":29795,"date":"2025-09-03T17:24:56","date_gmt":"2025-09-03T11:54:56","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29795"},"modified":"2025-12-30T19:23:22","modified_gmt":"2025-12-30T13:53:22","slug":"undisclosed-foreign-assets","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/","title":{"rendered":"CBDT Raised exemption limit for undisclosed foreign assets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e859175d38e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e859175d38e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#Central_Board_of_Direct_Taxes_have_indeed_raised_the_exemption_threshold_for_undisclosed_foreign_assets\" title=\"Central Board of Direct Taxes have indeed raised the exemption threshold for undisclosed foreign assets\">Central Board of Direct Taxes have indeed raised the exemption threshold for undisclosed foreign assets<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#Amendment_via_Finance_No_2_Act_2024\" title=\"Amendment via Finance (No. 2) Act, 2024:\">Amendment via Finance (No. 2) Act, 2024:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#Practical_Impact_on_Taxpayers\" title=\"Practical Impact on Taxpayers \">Practical Impact on Taxpayers <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#What_does_this_mean_for_taxpayers\" title=\"What does this mean for taxpayers?\">What does this mean for taxpayers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#In_Summary\" title=\"In Summary:\">In Summary:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/undisclosed-foreign-assets\/#Comparison_Pre_vs_Post_Amendment\" title=\"Comparison: Pre vs Post Amendment\">Comparison: Pre vs Post Amendment<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-28885\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/FA-income-.jpg\" alt=\"30k Cr taxpayers Revised their ITR &amp;b Disclosed Foreign Assets, Income\" width=\"845\" height=\"448\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/FA-income-.jpg 747w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/FA-income--300x159.jpg 300w\" sizes=\"(max-width: 845px) 100vw, 845px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Central_Board_of_Direct_Taxes_have_indeed_raised_the_exemption_threshold_for_undisclosed_foreign_assets\"><\/span><span style=\"color: #000080;\">Central Board of Direct Taxes have indeed raised the exemption threshold for undisclosed foreign assets<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following this legislative change, the Central Board of Direct Taxes has amended its internal instruction (dated August 18, 2025) to align prosecution thresholds with the revised penalty limits. Now, prosecution u\/s 49 and 50 will not be initiated where penalties u\/s 42 or 43 are not warranted\u2014specifically for undisclosed foreign assets (excluding immovable property) valued up to INR 20 lakh during the relevant year<\/p>\n<p><strong><span style=\"color: #000080;\">What is earlier Position (15.03.2022 Instruction):<\/span> <\/strong>Prosecution u\/s 49 and 50 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was not initiated if the undisclosed foreign asset(s) (other than immovable property) had an aggregate value up to INR 5 lakh during the previous year.<\/p>\n<p>As per recent media reports, the Finance (No. 2) Act, 2024 increased the exemption limit u\/s \u00a042 &amp; 43 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA) from INR 5 lakh to INR 20 lakh, applicable to all types of foreign assets except immovable property. This change took effect from October 1, 2024.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Amendment_via_Finance_No_2_Act_2024\"><\/span><span style=\"color: #000080;\"><strong>Amendment via Finance (No. 2) Act, 2024:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29796\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-41.jpg\" alt=\"foreign assets 1\" width=\"736\" height=\"996\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-41.jpg 620w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-41-222x300.jpg 222w\" sizes=\"(max-width: 736px) 100vw, 736px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29797\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-44.jpg\" alt=\"foreign assets 2\" width=\"766\" height=\"958\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-44.jpg 602w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/09\/photo_2025-09-03_16-41-44-240x300.jpg 240w\" sizes=\"(max-width: 766px) 100vw, 766px\" \/><\/p>\n<p>W.e.f. 01.10.2024, the proviso to Sections 42 and 43 of the the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was amended. &amp; New limit: INR 20 lakh (aggregate value of foreign asset(s), other than immovable property). This comes into effect from 01.10.2024, when the Finance (No. 2) Act, 2024 amended Sections 42 and 43.<\/p>\n<p>Prosecution u\/s 49 and 50 will not be initiated if the penalty u\/s 42\/43 is not leviable. This relief applies where the aggregate value of foreign assets (excluding immovable property) does not exceed INR 20 lakh at any time during the relevant year.The basic objective of this CBDT Instruction (18.08.2025 for taxpayers holding small-value foreign assets\/accounts, which might be missed due to oversight or ignorance.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Practical_Impact_on_Taxpayers\"><\/span><span style=\"color: #000080;\"><strong>Practical Impact on Taxpayers <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Threshold Raised: From INR 5 lakh to INR 20 lakh, which covered all foreign assets (bank accounts, shares, etc.) except immovable property. So impactful is the relief available for taxpayers that there is no penalty or prosecution for non-disclosure of such small-value assets. This disclosure is still mandatory in ITR, and this exemption is only from penalty\/prosecution, not from reporting obligations.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_this_mean_for_taxpayers\"><\/span><span style=\"color: #000080;\"><strong>What does this mean for taxpayers?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 534px;\" width=\"832\">\n<thead>\n<tr>\n<td><span style=\"color: #000080;\"><strong>Scenario<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>Pre-Amendment (Before Oct 1, 2024)<\/strong><\/span><\/td>\n<td><span style=\"color: #000080;\"><strong>Post-Amendment (Effective Oct 1, 2024)<\/strong><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Foreign assets \u2264 INR 5 lakh<\/td>\n<td>Protected from penalties under Sections 42\/43; internal Central Board of Direct Taxes \u00a0instruction also protected from prosecution<\/td>\n<td>Still protected\u2014but threshold raised<\/td>\n<\/tr>\n<tr>\n<td>Foreign assets between INR 5\u2014INR 20 lakh<\/td>\n<td>Previously exposed to penalties and prosecution<\/td>\n<td>Now protected from both penalties and prosecution (if other conditions met)<\/td>\n<\/tr>\n<tr>\n<td>Foreign immovable property (e.g. real estate abroad)<\/td>\n<td>Always excluded from this exemption<\/td>\n<td>Still excluded<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So effectively, individuals with small-value foreign assets (up to INR 20 lakh), excluding property, are now shielded from both penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for non-disclosure\u2014provided the assets are disclosed in the ITR and no other irregularities exist<\/p>\n<p><span style=\"color: #000080;\"><strong>Important caveats<\/strong><\/span><\/p>\n<ul>\n<li>Disclosure is still mandatory. Even though the protection threshold has been expanded, all foreign assets must still be declared in the Income Tax Return\u2014this is not a waiver<\/li>\n<li>Immovable property is excluded. Any immovable foreign asset, such as land or property, continues to fall outside the exemption.<\/li>\n<li>Aggregate value matters. The INR 20 lakh limit is based on the total combined value of all eligible foreign assets, not assessed separately<\/li>\n<li>Deliberate concealment is still punishable. The relief applies only to unintentional non-disclosures. Intentional attempts to evade tax, artificial splitting of assets, or manipulation of values remain subject to penalties and prosecution<\/li>\n<li><span style=\"color: #000080;\">You may also review the following blogs:<\/span>\n<ul>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdt-extends-due-date-for-tax-audit-itr-filing-ay-2025-26\/\" data-cke-saved-href=\"https:\/\/www.caindelhiindia.com\/blog\/cbdt-extends-due-date-for-tax-audit-itr-filing-ay-2025-26\/\">CBDT Extends Due Date for Tax Audit &amp; ITR Filing -AY 2025-26<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/key-changes-introduced-by-cbdt-in-tax-audit-report\/\" data-cke-saved-href=\"https:\/\/www.caindelhiindia.com\/blog\/key-changes-introduced-by-cbdt-in-tax-audit-report\/\">Key Changes Introduced by CBDT in Tax Audit Report<\/a><\/span><\/li>\n<li><span style=\"color: #000080;\"><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/learn\/cbdt-issued-faqs-on-income-tax-bill-2025-with-key-highlights-and.html\">Income Tax Bill 2025\u00a0<\/a><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"In_Summary\"><\/span><span style=\"color: #000080;\"><strong>In Summary:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>CBDT has raised the exemption limit for undisclosed foreign assets (excluding immovable property) from INR 5 lakh to INR 20 lakh, aligning prosecution relief with the revised penalty threshold. This brings much-needed clarity and relief to taxpayers with minor foreign holdings, while ensuring strict enforcement for serious cases. Enforcement will now target\u00a0significant or deliberate cases\u00a0of black money rather than minor omissions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Comparison_Pre_vs_Post_Amendment\"><\/span><span style=\"color: #000080;\"><strong>Comparison: Pre vs Post Amendment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 169px;\" width=\"822\">\n<thead>\n<tr>\n<td><strong>Scenario<\/strong><\/td>\n<td><strong>Before Oct 1, 2024<\/strong><\/td>\n<td><strong>After Oct 1, 2024<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Foreign assets \u2264 INR 5 lakh<\/td>\n<td>No penalty or prosecution<\/td>\n<td>Still exempt<\/td>\n<\/tr>\n<tr>\n<td>Foreign assets between INR 5\u201320 lakh<\/td>\n<td>Penalty and prosecution applicable<\/td>\n<td>Now exempt<\/td>\n<\/tr>\n<tr>\n<td>Foreign immovable property<\/td>\n<td>Always excluded<\/td>\n<td>Still excluded<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Central Board of Direct Taxes have indeed raised the exemption threshold for undisclosed foreign assets Following this legislative change, the Central Board of Direct Taxes has amended its internal instruction (dated August 18, 2025) to align prosecution thresholds with the revised penalty limits. Now, prosecution u\/s 49 and 50 will not be initiated where penalties &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29795"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29795"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29795\/revisions"}],"predecessor-version":[{"id":30851,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29795\/revisions\/30851"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}