Budget 2026: No Prosecution For Non-Disclosure Of Foreign Assets Up To ₹20 Lakh Under Black Money Law

The Union Government has proposed easing prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in cases involving non-disclosure of foreign assets, other than immovable property, with an aggregate value of up to ₹20 lakh.

Clause 144 of the Finance Bill, 2026, proposes amendments to the provisos of Sections 49 and 50 of the Black Money Act to provide further that the prosecution provisions “shall not apply in respect of an asset or assets (other than immovable property), where the aggregate value of such asset or assets does not exceed twenty lakh rupees”

As per the proposed amendment, a proviso is to be inserted in Section 49 to state that the provision shall not apply in respect of foreign assets, other than immovable property, where the aggregate value does not exceed ₹20 lakh. A similar proviso is proposed to be inserted in Section 50, exempting such cases from prosecution.

Under the existing law, Section 49 of the Act provides for prosecution where a person wilfully fails to furnish a return of income in respect of foreign income and assets, while Section 50 prescribes punishment where a resident wilfully fails to disclose information relating to foreign assets or foreign income in the return. Both provisions attract rigorous imprisonment ranging from six months to seven years, along with a fine.

The explanatory memorandum to the Finance Bill states that the amendment is intended to align the prosecution provisions with the penalty framework under the Act and to address instances of minor or inadvertent non-disclosures.