NEW DELHI: As part of efforts to get non-resident students and professionals, or those who have relocated to India, to come clean on undisclosed overseas assets and income, govt Saturday notified a new voluntary disclosure scheme for small taxpayers, who can pay an effective tax of 60% and avoid penalties and prosecution.In a notification, govt, which had announced the Foreign Assets of Small Taxpayers-Disclosure Scheme in the last budget, said the scheme will open on Sunday and is due to close on Dec 31. The income tax department has fixed March 31, 2026 as the “valuation date” to compute the market value of assets that are proposed to be declared.The Central Board of Direct Taxes (CBDT) said that the aggregate value of undisclosed foreign asset or foreign income must not exceed Rs 1 crore in case it was not previously offered to tax. Foreign assets that were already offered to tax or acquired when the taxpayer was a non-resident, but were not reported in the tax-return schedule, the threshold for declarations has been fixed at Rs 5 crore, along with a fee of Rs 1 lakh. The idea is to get someone who was a student and forgot to disclose his or her bank account details while overseas to come clean, an official said.The undisclosed asset, including financial interest, has to be in the name of the taxpayer, including where he or she is a beneficial owner. Proceeds of crime or cases where assessment proceedings have been completed under the Black Money Act, 2015 are ineligible. Those availing of the scheme will have two months to pay the tax after receiving the order from authorities.“This scheme allows taxpayers with non-disclosure of foreign income and assets, up to specified thresholds to regularise their position through a simple, one-time process. But taxpayers must note that there is a narrow window for this facility, declarations can only be filed between Aug 16, 2026 and Dec 31, 2026, with no declarations accepted thereafter. Taxpayers should evaluate eligibility and act promptly,” said Richa Sawhney, tax partner at Grant Thornton Bharat, a consulting firm.