2 weeks ago
CBDT's FAST-DS 2026 Helps Taxpayers Disclose Omitted Foreign Assets
Some adults in India have money, bank accounts, or shares in other countries but forgot to tell the tax office about them.
The government made a new rule called FAST-DS 2026 to help these people fix their mistake without being in big trouble.
It is a one-time chance to come forward and tell the government about the money they missed.
If the hidden foreign money or things are worth up to ₹1 crore, they can use this rule.
They have to pay about 60% of the value to make things right.
If the money was already taxed in India before, they only have to pay a small fee of ₹1 lakh.
After paying, the tax office promises not to punish them or take them to court for this mistake.
But the rule does not help people who got the money from crimes.
People who want to use this rule must fill out forms online and show the right documents.
It is like getting a one-time chance to say sorry and pay a price to start fresh.
The Central Board of Direct Taxes (CBDT) notified the FAST-DS Rules, 2026, a one-time disclosure mechanism for taxpayers who failed to report foreign assets or foreign income.
The scheme covers undisclosed foreign income, undisclosed foreign assets, and certain foreign assets acquired from income already taxed in India or earned while a non-resident.
For undisclosed foreign income and assets, the scheme applies where the aggregate value does not exceed ₹1 crore as on March 31, 2026.
Taxpayers must pay 30% tax plus an additional amount equal to 100% of that tax, effectively 60%, while a flat ₹1 lakh fee applies to certain assets acquired from already-taxed income up to ₹5 crore.
A valid declaration provides immunity from tax, penalty and prosecution under the Black Money Act, 2015, but excludes proceeds of crime under the Prevention of Money Laundering Act, 2002.
- Who
- The Central Board of Direct Taxes (CBDT), which notified the rules, and eligible taxpayers who are or were residents of India during the relevant period, including multinational employees with foreign ESOPs, former students with overseas accounts, and returning non-residents.
- What
- FAST-DS 2026, a one-time disclosure scheme allowing eligible taxpayers to regularise undisclosed foreign income, undisclosed foreign assets, and certain unreported assets acquired from already-taxed income, with defined payments and immunity from tax, penalty and prosecution.
- Where
- India, administered by the Income Tax Department, with declarations made electronically.
- When
- The rules were notified in 2026; asset thresholds apply as on March 31, 2026, and the declaration window and last date will be set by a subsequent Central Government notification.
- Why
- To create a compliance route for taxpayers with relatively small overseas holdings who may have made inadvertent reporting mistakes, offering immunity for valid declarations under a defined payment structure.
Key facts
- Scheme name
- FAST-DS 2026 (FAST-DS Rules, 2026)
- Coverage
- Undisclosed foreign income, undisclosed foreign assets, and certain foreign assets acquired from income already taxed in India or earned while a non-resident
- Value threshold
- ₹1 crore aggregate for undisclosed foreign income/assets; ₹5 crore for assets acquired from already-taxed income (as on March 31, 2026)
- Payment for undisclosed income/assets
- 30% tax plus additional amount equal to 100% of that tax (effectively 60%)
- Payment for already-taxed assets
- Flat ₹1 lakh fee, charged once for the first year of non-disclosure
- Immunity
- From tax, penalty and prosecution under the Black Money Act, 2015, for covered income or assets
- Exclusions
- Proceeds of crime under the Prevention of Money Laundering Act, 2002; matters with completed Black Money Act assessments
- Filing
- Electronic declaration in prescribed form; filing window to be notified by the Central Government
Sources
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