New Delhi, 16 August 2026: Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS) Rules, 2026, giving eligible taxpayers a one-time opportunity to declare certain undisclosed foreign assets, foreign income and undeclared overseas assets.
The scheme comes into force on August 14, 2026, and taxpayers can file declarations until December 31, 2026. No declaration will be accepted after the deadline.
FAST-DS 2026 has been introduced under Chapter IV of the Finance Act, 2026 and is intended to provide a voluntary compliance route for small taxpayers who may have failed to disclose certain foreign holdings or income in their income-tax returns.
The scheme could be relevant to taxpayers who hold or previously held overseas bank accounts, foreign investments, ESOPs or other foreign assets that were not properly disclosed, subject to the eligibility conditions and limits prescribed under the scheme.
Who can benefit?
Scheme covers specified categories of undisclosed foreign assets and income. The CBDT's explanatory material has highlighted situations involving foreign ESOPs/RSUs, dormant or low-value overseas bank accounts, foreign savings or insurance policies and assets held by people who were working or studying abroad, among other cases.
For certain undisclosed foreign assets or foreign income that was not offered to tax, the aggregate value eligible under the scheme is capped at ₹1 crore. The applicable payment in this category is 30% tax plus an additional amount equal to the tax, effectively amounting to 60% of the value covered by the declaration.
A separate category covers certain foreign assets that were acquired from income that had already been taxed or during a period when the taxpayer was a non-resident but were not declared in the relevant return. This category has a higher value threshold and a prescribed fee, subject to the detailed conditions of the rules.
Also Read | Foreign Assets of Small Taxpayers: FAST-DS 2026 Explained
Deadline December 31
Taxpayers who believe they may have an eligible foreign asset or foreign income that was not properly disclosed are required to examine their individual circumstances and the scheme's conditions before filing a declaration. The December 31, 2026 deadline is final, according to the CBDT's announcement.
The Income Tax Department has also provided FAQs and guidance on the scheme to help taxpayers understand eligibility, valuation and the applicable payment requirements.
Keywords
Foreign Assets of Small Taxpayers, FAST-DS 2026, CBDT FAST-DS, Undisclosed foreign assets, Foreign asset disclosure scheme, Small taxpayers' foreign assets, Citizen News Puttur