1 week ago
FAST-DS Offers Indians One-Time Chance to Declare Dormant Foreign Accounts
Some Indians still have old bank accounts in other countries from when they studied or worked abroad.
Even if these accounts are unused, they may still need to be reported on an Indian tax return.
The Foreign Assets of Small Taxpayers Disclosure Scheme gives some taxpayers a one-time chance to report such assets.
Declarations must be made by December 31, 2026.
The scheme began on August 16, 2026.
A taxpayer may have to pay a Rs 1 lakh fee to use it.
The account’s value may be based on total deposits made while the person was resident, not just the final balance.
Not reporting a foreign asset can lead to a penalty, although an exception applies when total foreign assets do not exceed Rs 20 lakh.
The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, took effect on August 16, 2026.
Eligible taxpayers must declare specified undeclared foreign assets and income by December 31, 2026.
Foreign bank accounts must be reported in Schedule FA of ITR-2 or ITR-3, even if dormant or income-free.
Failure to report may attract a Rs 10 lakh penalty, although the penalty does not apply when total foreign assets are no more than Rs 20 lakh.
FAST-DS permits eligible declarations up to Rs 5 crore for a prescribed Rs 1 lakh fee, subject to the scheme’s conditions.
- Who
- Indian taxpayers who hold or previously held undeclared foreign assets, including dormant bank accounts.
- What
- The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, offers a one-time route to declare eligible foreign assets and income.
- Where
- Foreign bank accounts and other foreign assets are reported through Schedule FA in Indian income tax returns.
- When
- The scheme came into force on August 16, 2026; declarations are due by December 31, 2026.
- Why
- To allow eligible taxpayers to disclose specified foreign assets and income that were omitted from earlier tax returns.
Key facts
- Scheme
- Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS)
- Effective date
- August 16, 2026
- Declaration deadline
- December 31, 2026
- Relevant tax forms
- Schedule FA of ITR-2 or ITR-3
- Potential penalty
- Rs 10 lakh under Section 43 of the Black Money Act
- Penalty exemption
- The penalty does not apply when aggregate foreign assets do not exceed Rs 20 lakh
- FAST-DS asset limit and fee
- Aggregate foreign assets up to Rs 5 crore, for a prescribed fee of Rs 1 lakh
Sources
Related news
FAST-DS 2026 Opens Disclosure Window for Forgotten Foreign Accounts
India's FAST-DS 2026 opens one-time foreign asset disclosure window
FAST-DS: One-Time Foreign Assets Disclosure Scheme Opens August 16
FAST-DS Opens One-Time Window for Undisclosed Foreign Assets
India opens one-time disclosure window for undisclosed foreign assets
Notice Error Helps Gurugram Man Defeat Black Money Penalty
ITAT Rejects Tax Claim Over Rs 24 Crore Singapore Accounts
