2 weeks ago
FAST-DS: One-Time Foreign Assets Disclosure Scheme Opens August 16
The government of India has made a special one-time offer for some taxpayers.
If someone has a bank account, property, or income in another country that they never told the tax department about, they can now confess it.
This offer is called FAST-DS, and it starts on August 16.
Taxpayers have until December 31 to send in their forms online.
For foreign money or assets worth up to one crore rupees that were never reported, they must pay 60% in taxes.
For other foreign assets that were already taxed but not reported, they only pay a small flat fee of one lakh rupees.
The value of the assets is checked as of March 31, 2026.
If someone pays correctly, they will not be punished or fined anymore for those assets.
But the offer does not help if the money came from a crime.
This is a way for small taxpayers to fix their mistakes and start fresh with the tax department.
The Income Tax Department notified the one-time Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), effective August 16 with declarations open until December 31, 2026.
Category 1 covers undisclosed foreign assets or income not previously offered to tax, up to ₹1 crore, attracting 30% tax plus an equal additional amount, an effective levy of 60%.
Category 2 covers foreign assets already taxed or acquired while a non-resident but not reported in return schedules, up to ₹5 crore, at a flat fee of ₹1 lakh.
Assets are valued as on March 31, 2026, with foreign bank accounts valued by total deposits since opening, excluding certain amounts to avoid double counting.
A valid declaration with payment provides immunity from further tax, penalty and prosecution under the Black Money Act, 2015, but excludes proceeds of crime and closed assessments.
Declarations are filed electronically in Form 1, payment is due within two months of the Form 2 order, with a two-month extension at 1% monthly simple interest.
- Who
- The Income Tax Department and the Central Board of Direct Taxes (CBDT); eligible taxpayers include residents, non-residents, and resident-but-not-ordinarily-resident (RNOR) individuals who were based in India in the relevant year.
- What
- A one-time voluntary disclosure scheme (FAST-DS) allowing small taxpayers to declare undisclosed foreign assets and income, paying a 60% effective levy or a flat ₹1 lakh fee depending on the category.
- Where
- India; declarations are filed electronically in Form 1 and processed by the Principal Director General or Director General of Income-tax (Systems).
- When
- Effective from August 16, with declarations open until December 31, 2026; assets valued as on March 31, 2026.
- Why
- To allow taxpayers who omitted foreign assets or income from their returns to come clean and receive immunity from further tax, penalty and prosecution under the Black Money Act, 2015.
Key facts
- Scheme Name
- Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS)
- Effective Date
- August 16; declarations open until December 31, 2026
- Valuation Date
- March 31, 2026
- Category 1 Levy
- 30% tax plus equal additional amount, 60% effective, for assets/income up to ₹1 crore
- Category 2 Fee
- Flat ₹1 lakh for assets up to ₹5 crore already taxed or acquired as non-resident
- Payment Timeline
- Within two months of Form 2 order; up to two-month extension at 1% monthly simple interest
- Immunity
- No further tax, penalty or prosecution under the Black Money Act, 2015 on declared amounts
- Exclusions
- Proceeds of crime under PMLA 2002 proceedings and closed Black Money Act assessments
Sources
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