Income Tax Department wants you to disclose your foreign assets. Here are key rules you should know to calculate their FMV

For this, the department has prescribed that foreign assets must be valued at their fair market value (FMV) in accordance with the asset-specific valuation rules. This article explains how taxpayers can determine the FMV of foreign assets for the purpose of this scheme.

According to a report by RSM India, a tax and consultancy firm, the fair market value is generally the higher of the cost of acquisition and the price the asset would fetch in the open market on the valuation date, supported by a valuer recognised by the government of the country where the asset is located. Where no such valuation is carried out, the indexed cost of acquisition can be deemed to be the FMV.

The FAST-DS scheme prescribes specific valuation methodologies for various classes of foreign assets, including bullion, jewellery and precious stones, quoted and unquoted securities, immovable property and foreign bank accounts.

Here are the important valuation provisions

For foreign bank accounts, the value is not the balance on the valuation date but the sum of all deposits made into the account from the date it was opened up to March 31, 2026, with certain exclusions. Deposits made from withdrawals of the same account are excluded to avoid double counting.

"The value is based on the aggregate deposits made from the date of opening up to 31 March 2026, excluding deposits attributable to withdrawals from the same account to avoid double counting," RSM India said.

FMV determined in foreign currency is converted into Indian Rupees using the prescribed RBI reference rate as on 31 March 2026, with separate rules for non-permitted currencies.

For assets other than bank accounts, a variance not exceeding 20% of the declared FMV will not, by itself, render the declaration invalid.

"For assets other than bank accounts, a valuation difference of up to 20% of the FMV declared will not, by itself, invalidate the declaration on grounds of misrepresentation, suppression or false particulars," RSM India said.

Key action points for taxpayers

"Considering the consequences of non-disclosure of foreign income and assets under the Black Money Act, 2015, taxpayers with historical foreign assets or foreign-sourced income should review their past tax filings and foreign asset disclosures to assess their eligibility and the applicability of FAST-DS 2026," the report said.

Taxpayers should consider the following:

• Check the applicable ₹1 crore or ₹5 crore aggregate threshold rather than testing assets individually.

• Identify the residential status and relevant previous year for every asset/income item.

• Determine FMV as on 31 March 2026 using the prescribed asset-specific valuation rules.

• Compile documentary evidence for acquisition of assets or earning of foreign income.

• Consider valuation reports where relevant, particularly for property, jewellery, artistic work and unquoted securities.

Declarations under FAST-DS can be filed online up to December 31, 2026.