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Foreign assets amnesty scheme opens with new disclosure forms
India has started a new program for people who did not report certain foreign money or assets.
They can use Form 1 to tell the tax department what they own or earned abroad.
The form must be submitted online by December 31, 2026.
The department will calculate the amount to pay in Form 2.
After paying, the taxpayer submits Form 3 with payment details.
The department then issues Form 4 to confirm the declaration and payment.
The program may protect eligible taxpayers from some additional taxes, penalties, and prosecution.
People who used to live in India may qualify even if they now live abroad.
However, the program cannot cover proceeds of crime or cases already completed under the Black Money Act.
The Income Tax Department has notified Form 1 for FAST-DS 2026 declarations.
Taxpayers must electronically file Form 1 through the e-filing portal by December 31, 2026.
The form seeks personal details, foreign assets and income, valuations as of March 31, 2026, and payment information.
The department will issue Form 2, followed by Forms 3 and 4 after payment and verification.
The scheme offers a 60% levy for Category 1 cases and a Rs 1 lakh fee for eligible Category 2 assets.
- Who
- Taxpayers with eligible undisclosed foreign income or assets, including some people who were formerly resident in India.
- What
- The Income Tax Department has launched Form 1 under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, known as FAST-DS 2026.
- Where
- Electronically through the income tax e-filing portal.
- When
- Forms are now available; Form 1 must be filed by December 31, 2026. Asset valuations are reported as of March 31, 2026.
- Why
- To allow eligible taxpayers to regularise unreported foreign income or assets under a defined tax or fee structure and obtain specified legal immunities.
Key facts
- Scheme
- Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026)
- Initial form
- Form 1, covering taxpayer details, foreign assets and income, valuations, and payment information
- Filing deadline
- December 31, 2026
- Category 1
- Undisclosed foreign income and assets up to Rs 1 crore; effective levy of 60%
- Category 2
- Assets up to Rs 5 crore acquired from income offered to tax in India; fee of Rs 1 lakh
- Payment process
- The department issues Form 2; taxpayers submit payment details in Form 3 and receive final certification in Form 4
- Key exclusions
- The scheme does not apply to proceeds of crime covered by pending or initiated Prevention of Money-Laundering Act proceedings, or years with completed Black Money Act assessments
Quotes
Abheet Sachdeva
Partner at Nangia Global.
“Compared with the original black money disclosure window, FAST-DS provides a fresh, targeted opportunity for smaller and often inadvertent historical omissions, with a relatively calibrated tax/fee structure and immunity from specified Black Money Act consequences.”
financialexpress.com
“The voluntary disclosure will provide immunity from further tax, penalty and prosecution under the BMA and Income-tax Act, 2025 offering taxpayers greater certainty and a controlled exit from potential BMA or I-T Act exposure.”
financialexpress.com
Sources
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