Foreign asset disclosure scheme 2026: How to calculate market value of different overseas holdings — check rules

The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, is a one-time voluntary scheme that allows eligible taxpayers to disclose specified foreign assets and income that were not previously reported.

The scheme opened on 16 August, with 31 December 2026 as the deadline for making a declaration.

One of the key steps is determining the market value of these foreign assets for reporting under the scheme.

What is the basic rule for valuing foreign assets?

Taxpayers have to look at two values:

• The price they paid when they bought the asset.
• The price the asset could get if sold in the market on 31 March 2026. It should be supported by a report from a recognised valuer in the country where the asset is located.

The higher of the two is taken as the fair market value (FMV). For example, if a taxpayer bought jewellery for ₹20 lakh, but it was worth ₹28 lakh on 31 March, the value to be declared will be ₹28 lakh.

If no such valuation is done, the indexed cost of acquisition is treated as the FMV.

The rules cover a range of foreign assets, including bank accounts, shares, overseas property, bullion, jewellery and precious stones, paintings, artwork, and interests in foreign partnerships, AOPs and LLPs.

How will foreign shares be valued?

• Quoted shares: Take the highest and lowest prices at which the share was quoted on 31 March and calculate their average. Compare this with the purchase cost. The higher of the two values is considered for reporting.
  
  If the share was not traded on 31 March, use the highest and lowest prices from the nearest earlier day on which it was traded.
• Unquoted equity shares: Since there is no market price, a prescribed calculation is used. It looks at the company's assets and liabilities and the value of items such as property, jewellery, shares and securities held by it.
  This value is then compared with the purchase cost, and the higher amount is considered.

How will a foreign bank account be valued?

A foreign bank account is treated differently. Taxpayers cannot simply use the balance in the account on 31 March 2026. Instead, they need to add up the eligible deposits made into the account from the date it was opened up to 31 March.

However, the same money should not be counted twice. If money is withdrawn from the account and that same money is later deposited back into the account, the later deposit is ignored.

Suppose a taxpayer opened a foreign bank account in 2010 and made these transactions:

The CBDT example assumes that the earlier withdrawals were later put back into the account. So, from the $500 deposited in 2013, $200 is treated as money coming from the earlier $700 withdrawal. Only the remaining $300 is counted as a fresh deposit.

Similarly, from the $1,000 deposited in 2021, $400 is treated as the money withdrawn in 2020. Therefore, only $600 is counted.

After these adjustments, the total eligible deposits are $4,900. The amount is then converted into Indian rupees using the applicable exchange rate on 31 March 2026.

How will business interests be valued?

For an interest in a foreign partnership, AOP or LLP, first calculate the entity's net assets as on 31 March. The value is then divided among partners based on their capital contribution, and for the remaining amount, according to the agreement or profit-sharing ratio.

What happens if money is moved from one asset to another?

The same money cannot be counted twice.

For example, if a foreign property is sold and the money is deposited into a bank account, the sale proceeds should not be counted again as a separate fresh deposit.

How will foreign currency be converted into rupees?

For currencies covered by the RBI's specified list, the RBI reference rate as of 31 March 2026 needs to be used.

For other currencies, the amount should first be converted into US dollars at the relevant local central bank or regulated bank rate and then converted into rupees using the RBI reference rate.

Disclaimer: This is meant for informational purposes only. Please refer to the official website or consult a qualified tax professional.