Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS), 2026, giving eligible taxpayers a one-time opportunity to disclose certain foreign assets or income that were not properly reported earlier.
The scheme came into force on August 16, 2026, and taxpayers can file declarations until December 31, 2026. The valuation date for assets under the scheme is March 31, 2026. But what exactly does FAST-DS mean, who can use it and how much will a taxpayer have to pay?
What is FAST-DS?
FAST-DS is a one-time voluntary disclosure scheme. In simple terms, it gives eligible taxpayers a limited window to come forward and disclose certain undisclosed foreign assets, Undisclosed foreign income, Foreign assets that were not reported in the relevant income-tax return. The scheme is meant to address specific cases of non-disclosure and is subject to eligibility conditions and monetary limits.
Who can use the scheme?
A person who was resident in India in the relevant year can be eligible. Interestingly, a person who is currently a non-resident or Resident but Not Ordinarily Resident (RNOR) may also qualify if they were resident in India in the year to which the undisclosed foreign income relates or in the year the foreign asset was acquired.
A declaration can also be made where a taxpayer did not file an income-tax return, Filed a return but did not disclose the relevant foreign asset or income; or Has foreign income or an asset that escaped assessment.
What can be declared?
There are two broad categories.
1. Undisclosed foreign asset or income
This covers a foreign asset or foreign income that was not offered to tax in India. The combined value of the undisclosed foreign asset and foreign income must not exceed ₹1 crore.
2. Foreign asset not reported in the return
This category covers a foreign asset that was already acquired from income offered to tax, or was acquired while the taxpayer was a non-resident, but was not reported in the relevant foreign-assets schedule of the tax return. The aggregate value of such assets must not exceed ₹5 crore.
How much will taxpayers have to pay?
This is one of the most important differences between the two categories. For an undisclosed foreign asset or foreign income, the taxpayer has to pay: 30% tax + another amount equal to the tax. That effectively means 60% of the declared value/income.
For example, if a taxpayer has an undisclosed foreign bank account worth ₹60 lakh and undisclosed foreign income of ₹20 lakh:
- 30% of ₹60 lakh = ₹18 lakh
- 30% of ₹20 lakh = ₹6 lakh
- Total tax = ₹24 lakh
- Additional amount equal to tax = ₹24 lakh
- Total payable = ₹48 lakh
For the second category—where the asset was already taxed or acquired while the taxpayer was a non-resident but was not reported—the prescribed fee is ₹1 lakh, provided the total asset value does not exceed ₹5 crore.
When is the deadline?
The FAST-DS window opened on August 16, 2026.
The last date to file a declaration is December 31, 2026.
No declaration can be filed under the scheme after this date.
What is the valuation date?
The valuation date is March 31, 2026. The value of the foreign asset has to be determined according to the valuation rules prescribed under FAST-DS. Different methods apply to assets such as overseas property, shares, securities, jewellery and foreign bank accounts.
How do I apply?
The declaration has to be filed online in Form 1 with the prescribed income-tax authority.
Taxpayers have to provide documents supporting the acquisition of the asset or earning of the foreign income. Where applicable, valuation reports also have to be uploaded.
After verification, the Income Tax Department communicates the amount payable. The taxpayer then has to make the payment within the prescribed time and submit proof of payment electronically.
What benefit does the taxpayer get?
Once a declaration is accepted and the required payment is made, the scheme provides specified immunity from further tax, penalty and prosecution under the Black Money Act, 2015, in relation to the income or asset covered by the valid declaration. However, this protection is subject to the conditions of the scheme.
Who cannot use FAST-DS?
FAST-DS is not a blanket amnesty for every undisclosed foreign asset. The scheme does not cover income or assets that directly or indirectly represent proceeds of crime where proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002.
It also does not apply to an assessment year for which assessment proceedings under the Black Money Act, 2015, have already been completed.
What taxpayers should remember
FAST-DS gives eligible taxpayers a limited opportunity to correct certain foreign-asset or foreign-income disclosure issues, but it does not automatically cover every case. Taxpayers should first check their residential status, the source and value of the foreign asset or income, previous tax returns and any existing assessment proceedings before filing a declaration. Where the circumstances are complicated, taking advice from a qualified tax professional would be advisable.
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