Budget 2026: Retrospective Relief Under Black Money Act for Foreign Assets Below ₹20 Lakh [Read Finance Bill 2026]

The Union Budget for the Financial Year 2026–27 was presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today (Sunday, 1 February 2026).

The Budget proposes to provide retrospective relief under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, by extending immunity from prosecution in cases involving non-disclosure of small foreign assets.

Under the proposal, taxpayers will not face prosecution for non-disclosure of non-immovable foreign assets where the aggregate value is less than Rs. 20 lakh. The relief will apply retrospectively from 1 October 2024.

Currently, while no penalty is levied for non-disclosure of such small-value foreign assets, the law still allows for prosecution under the Black Money Act. Budget 2026 seeks to align the prosecution provisions with the penalty framework by extending immunity in these cases.

The relief is limited to non-immovable assets and does not apply to undisclosed foreign immovable property or cases involving higher-value assets. The government clarified that the proposal does not dilute the overall framework of the Black Money Act, which continues to apply to serious violations.

By giving the change retrospective effect from October 1, 2024, the government aims to provide certainty and legal relief to taxpayers facing prosecution for small-value foreign asset disclosure defaults during this period.

The proposal forms part of the broader set of direct tax reforms in Budget 2026 focused on easing compliance, reducing litigation, and promoting a more proportionate enforcement approach.

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