2 weeks ago
India's FAST-DS 2026 opens one-time foreign asset disclosure window
Imagine you have some money or a toy in another country that you forgot to tell your parents about.
In India, grown-ups sometimes forget to report money or things they own abroad to the government.
On August 16, the Indian government started a special one-time program called FAST-DS to let them admit the mistake.
The program is open until December 31, 2026.
People who live in India — and some who used to live there — can take part.
If the hidden money or thing was never reported and is worth up to one crore rupees, they must pay the government 60 rupees out of every 100 rupees.
If the item was bought with already-taxed money but simply not listed, they pay only a small fee of one lakh rupees.
Taxpayers fill out an online form and send proof of their assets.
After they pay, the government promises not to fine them or take them to court for those assets.
The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, opened on August 16, with declarations accepted electronically until December 31, 2026.
Undisclosed foreign assets or income not previously offered to tax, up to an aggregate ₹1 crore, attract 30% tax plus an additional amount equal to the tax — an effective 60% liability.
A second category lets taxpayers declare foreign assets already offered to tax or acquired while non-resident, up to ₹5 crore, for a flat fee of ₹1 lakh.
Eligible taxpayers are Indian residents in the relevant previous year, including certain non-residents and resident but not ordinarily resident (RNOR) taxpayers, filing electronically in Form 1.
Foreign assets are valued at fair market value as of March 31, 2026, and valid declarations with payment grant immunity from further tax, penalty and prosecution under the Black Money Act, 2015.
The scheme excludes assets or income representing proceeds of crime under the Prevention of Money-laundering Act, 2002, and cases with completed Black Money Act assessments.
Payment is due within two months of the Form 2 order, extendable by up to two months with 1% simple interest per month of delay.
- Who
- Taxpayers who were residents of India in the relevant previous year, including certain non-residents and resident but not ordinarily resident (RNOR) taxpayers if they were residents when the foreign income arose or the asset was acquired.
- What
- The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, a one-time government window to declare certain undisclosed foreign assets and income in return for prescribed tax or fees and immunity.
- Where
- India, administered by the Income Tax Department and notified by the Central Board of Direct Taxes (CBDT).
- When
- Opened on August 16, 2026, with declarations accepted until December 31, 2026; the valuation date for foreign assets is March 31, 2026.
- Why
- To facilitate voluntary compliance by small taxpayers such as students, young professionals, tech employees and relocated NRIs with undisclosed foreign assets or income, and to grant immunity from further tax, penalty and prosecution under the Black Money Act.
Key facts
- Scheme
- Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026
- Declaration window
- August 16, 2026 to December 31, 2026
- Category 1 limit
- Undisclosed foreign assets/income up to aggregate ₹1 crore
- Category 1 cost
- 30% tax plus additional amount equal to the tax (effective 60%); ₹60 lakh on ₹1 crore
- Category 2 limit
- Foreign assets offered to tax or acquired while non-resident, up to ₹5 crore
- Category 2 cost
- Flat fee of ₹1 lakh
- Valuation date
- March 31, 2026 (fair market value)
- Filing and payment
- Electronic Form 1; payment within two months of Form 2 order, extendable by up to two months with 1% monthly interest
Quotes
Chirag Chauhan
Founder of CA Chauhan & Co, a chartered accountancy firm in Mumbai.
“Importantly, it works alongside the existing foreign-asset reporting requirements — taxpayers will continue to be required to disclose their foreign holdings appropriately in their annual tax returns.”
indianexpress.com
“The FAST-DS is like an indirect nudge to the taxpayers to disclose their foreign assets correctly.”
indianexpress.com
Central Board of Direct Taxes (CBDT)
Indian tax authority responsible for direct taxes
“The scheme will allow eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” by paying the prescribed tax or fee.”
wionews.com
Sources
Have undeclared foreign assets? New govt scheme may help avoid prosecution – Here’s how
FAST-DS 2026: Have an undisclosed foreign asset worth ₹1 crore? Know why disclosure could cost ₹60 lakh, here’s the math
Undisclosed foreign income? Here’s how new tax window can help
Foreign assets disclosure scheme opens today: Who can declare undisclosed assets and income?
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