2 weeks ago
Income Tax Department Opens Foreign Asset Disclosure Window August 16
The tax department is giving some people a special one-time chance to tell them about money or property they own in other countries.
This chance is called the Foreign Assets of Small Taxpayers-Disclosure Scheme, or FAST-DS.
It is for people who did not properly report their foreign assets or income before.
The special window opens on August 16, 2026, and closes on December 31, 2026.
People can send their declaration online using a form called Form 1.
If tax was never paid on the foreign money or assets, the total value can be up to Rs 1 crore, and the person must pay an amount equal to 60 per cent of it.
If tax was already paid, the assets can be worth up to Rs 5 crore, and the person just pays a fixed fee of Rs 1 lakh.
After the tax office checks the form, the person has two months to pay, and can get two extra months by paying a little extra interest.
If payment is not finished within four months, the person loses this special chance.
The Income Tax Department will open a one-time disclosure window for small taxpayers holding undisclosed foreign assets or income.
The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) runs from August 16, 2026, to December 31, 2026.
Eligible taxpayers include residents, non-residents and RNOR individuals who were residents of India in the relevant year, filing declarations electronically in Form 1.
Category one covers untaxed undisclosed foreign assets and income up to Rs 1 crore, with tax of 30 per cent plus an equal additional amount, an effective 60 per cent outgo.
Category two covers previously taxed or non-resident-acquired foreign assets up to Rs 5 crore for a fixed fee of Rs 1 lakh, with payment due within two months of the Form 2 order, extendable by two months with 1 per cent monthly interest.
- Who
- Eligible small taxpayers - residents, non-residents and residents but not ordinarily resident (RNOR) individuals who were residents of India in the year to which the undisclosed income relates or when the foreign asset was acquired.
- What
- A one-time disclosure scheme (FAST-DS) allowing eligible taxpayers to declare certain undisclosed foreign assets and income on payment of a specified tax or fee.
- Where
- India; declarations are filed electronically in Form 1 under rules notified by the Central Board of Direct Taxes (CBDT).
- When
- From August 16, 2026, to December 31, 2026.
- Why
- To enable eligible taxpayers to declare undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets on payment of a specified tax or fee.
Key facts
- Scheme
- Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), 2026
- Window
- August 16, 2026 - December 31, 2026 (one-time opportunity)
- Administering body
- Central Board of Direct Taxes (CBDT)
- Declaration method
- Electronic filing in Form 1
- Category 1 limit
- Rs 1 crore (value as of March 31, 2026) for untaxed undisclosed foreign assets and income
- Category 1 tax
- 30% tax plus an equal additional amount (effective 60% outgo)
- Category 2 limit and fee
- Rs 5 crore maximum; fixed fee of Rs 1 lakh for previously taxed or non-resident-acquired assets
- Payment timeline
- Form 2 order within one month; payment within two months, extendable by two months with 1% simple interest per month
Quotes
Central Board of Direct Taxes (CBDT)
Information released by the Central Board of Direct Taxes
“"All declarations will be processed electronically, according to FAQs issued by the Central Board of Direct Taxes."”
freepressjournal.in
“"The scheme opens on August 16 and will remain available until December 31, 2026."”
freepressjournal.in
Sources
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