2 weeks ago
India opens one-time disclosure window for undisclosed foreign assets
The Government of India has made a new rule to help people who forgot to tell the tax department about money or things they have in other countries.
It is called the Foreign Assets of Small Taxpayers Disclosure Scheme, or FAST-DS for short.
It is like a special chance to come forward and say sorry for forgetting, without being punished too harshly.
People can declare bank accounts, houses, land, jewellery, art, shares, or other assets located outside India.
The window opens on August 16 and the last day to declare is December 31.
If the undisclosed assets and income are worth up to Rs 1 crore, the taxpayer pays 30% tax plus another 30% in place of a penalty, so about 60% of the value.
If the assets are worth up to Rs 5 crore and were bought with money earned while living abroad or from income already taxed, the taxpayer just pays a flat fee of Rs 1 lakh.
After paying, taxpayers get immunity, meaning no extra tax, penalty, or prosecution for those declared items.
However, the scheme does not apply to money from crime or to cases already closed under the Black Money Act.
The government notified FAST-DS, a one-time voluntary disclosure scheme, effective August 16 with a December 31 last declaration date.
It covers undisclosed foreign income and assets outside India up to Rs 1 crore, and assets up to Rs 5 crore acquired during non-residency or from already-taxed income left out of return schedules.
Under the Rs 1 crore category, taxpayers pay 30% tax plus an equal additional amount in lieu of penalty — effectively 60% of the value — and get immunity from prosecution.
Under the Rs 5 crore category, a flat fee of Rs 1 lakh (or nil for smaller disclosures) grants immunity from both penalty and prosecution.
Declarations are filed electronically in Form 1 with a March 31, 2026 valuation date; payment is due within two months of the Form 2 order, extendable by two months at 1% monthly interest.
- Who
- The Central Board of Direct Taxes (CBDT), which notified the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026; Union Finance Minister Nirmala Sitharaman, who announced the scheme in the Budget speech in February; and eligible taxpayers such as students, young professionals, tech employees, and relocated NRIs.
- What
- FAST-DS, a one-time voluntary disclosure scheme letting taxpayers declare undisclosed foreign bank accounts, immovable property, jewellery, artistic work, shares, securities, or other assets and income, in exchange for immunity from tax, penalty, and prosecution.
- Where
- India; the scheme covers assets and income located outside India.
- When
- Effective August 16, 2026, with December 31, 2026 as the last declaration date; announced in the February Budget speech.
- Why
- To address practical difficulties small taxpayers face in disclosing foreign income or assets and to give them a chance to comply without tax, penalty, or prosecution.
Key facts
- Scheme name
- Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS)
- Effective date
- August 16, 2026
- Last declaration date
- December 31, 2026
- Valuation date
- March 31, 2026; foreign currency converted at RBI reference rate
- Category 1 charge
- 30% tax plus additional 30% in lieu of penalty (effectively 60% of declared value)
- Category 2 charge
- Flat fee of Rs 1 lakh, or nil for smaller disclosures
- Payment terms
- Within two months of the Form 2 order; additional two months with 1% monthly interest
- Exclusions
- Proceeds of crime under the Prevention of Money-laundering Act, 2002; income or assets already assessed under the Black Money Act, 2015
Quotes
Central Board of Direct Taxes (CBDT) Notification
Indian tax authority issuing the disclosure scheme
“The maximum additional period allowed is four months from the end of the month in which the original payment order (Form 2) was passed. If payment is not made within this outer limit, the benefit of the Scheme ceases to be available for that declaration.”
indianexpress.com
“The aggregate value of the undisclosed asset located outside India (as on 31st March, 2026) and the undisclosed foreign income must not exceed ₹1 crore.”
livemint.com
Sources
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