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FAST-DS 2026 Opens Disclosure Window for Forgotten Foreign Accounts
Some people who lived abroad may still have an old bank account or investment there after returning to India.
They may need to report these foreign assets in their Indian tax return.
FAST-DS 2026 gives eligible taxpayers a one-time chance to report certain assets they missed.
Declarations can be made until 31 December 2026.
The amount to pay depends on where the money came from and whether it was already taxed.
Some undisclosed income or assets worth up to ₹1 crore may require a total payment of 60%.
Certain assets acquired with already-taxed money or while the person was not an Indian resident may instead qualify for a ₹1 lakh fee, up to ₹5 crore.
After the required declaration and payment, the taxpayer may receive protection from further tax, penalties and prosecution under the Black Money Act.
FAST-DS 2026 took effect on 16 August and accepts eligible declarations until 31 December 2026.
The scheme covers certain undisclosed foreign assets and income, plus legitimately acquired assets omitted from tax-return reporting.
Undisclosed foreign assets or income valued up to ₹1 crore may attract 30% tax plus an equal amount, totaling 60%.
Assets acquired from already-taxed income or while non-resident may qualify for a ₹1 lakh fee route, with a limit of ₹5 crore.
A valid declaration and required payment can provide immunity from further Black Money Act tax, penalties and prosecution, subject to scheme conditions.
- Who
- Eligible Indian taxpayers with specified undisclosed foreign assets or income, including people who retained overseas assets after returning to India.
- What
- The Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 provides a one-time window to disclose qualifying foreign assets or income and seek specified immunity.
- Where
- The scheme concerns foreign bank accounts, investments and other foreign assets that must be considered for reporting in Indian income tax returns.
- When
- The scheme came into effect on 16 August, and declarations may be made until 31 December 2026.
- Why
- To allow eligible taxpayers to correct certain omissions and obtain immunity from further Black Money Act tax, penalties and prosecution, subject to the scheme’s conditions.
Key facts
- Scheme
- Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026
- Effective date
- 16 August
- Declaration deadline
- 31 December 2026
- First payment route
- For qualifying undisclosed foreign assets or income up to ₹1 crore: 30% tax plus an additional amount equal to 100% of that tax, totaling 60%.
- Second payment route
- For qualifying assets acquired from already-taxed income or while the taxpayer was non-resident: a flat ₹1 lakh fee for aggregate assets up to ₹5 crore.
- Existing penalty
- The Black Money Act can impose a ₹10 lakh penalty for failing to report a foreign asset or providing inaccurate particulars, subject to statutory exceptions and thresholds.
- Reporting location
- Foreign assets are generally reported through Schedule FA in the applicable income tax return.
Sources
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