Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
Table of Contents
FAST-DS 2026 (Foreign Assets of Small Taxpayers Disclosure Scheme, 2026)
The attached document explains the FAST-DS 2026, a one-time voluntary disclosure scheme introduced by the Government of India for small taxpayers holding undisclosed foreign assets or foreign income. The scheme is effective from 16 August 2026 and remains open until 31 December 2026.
What is the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026?
FAST-DS stands for Foreign Assets of Small Taxpayers Disclosure Scheme, 2026. It provides an opportunity for eligible taxpayers to voluntarily disclose certain undisclosed foreign assets and foreign income by paying a prescribed tax, penalty, or fee and obtain immunity from further proceedings under the Black Money Act, 2015.
Important Dates
| Particulars | Date |
|---|---|
| Scheme effective from | 16 August 2026 |
| Last date for disclosure | 31 December 2026 |
| Valuation date | 31 March 2026 |
Who can avail themselves of the foreign assets of the small taxpayers’ disclosure scheme, 2026?
The scheme is available to:
- Persons who were residents in India in the relevant previous year.
- A Persons who are currently Non-Residents (NR) or RNOR but were residents when the foreign asset was acquired or foreign income was earned.
- Taxpayers who failed to file a return and failed to disclose foreign assets/income in a filed return. and have foreign assets/income that escaped assessment.
What Can Be Declared?
Category 1: Undisclosed Foreign Assets/Income
Includes:
- Foreign bank accounts
- the Foreign properties
- Foreign shares/securities
- The Financial interests outside India
- Foreign income not offered to tax
Eligibility Ceiling: Aggregate value must not exceed INR 1 crore.
Category 2: Assets Already Taxed but Not Reported
Includes: Foreign assets acquired from income earned abroad while a non-resident. and foreign assets acquired from income already offered to tax in India but omitted from Schedule FA in the ITR.
Eligibility Ceiling: Aggregate value should not exceed INR 5 crore.
Amount Payable Under FAST-DS
Category 1
| Particulars | Rate |
|---|---|
| Tax | 30% |
| Penalty | 100% of tax |
| Effective Cost | 60% |
Example: If an undisclosed foreign asset is valued at ₹50 lakh:
- Tax = INR 15 lakh
- Penalty = INR 15 lakh
- Total payable = INR 30 lakh
Effective burden = 60% of asset value.
Category 2:
Instead of tax and penalty, a flat fee is INR 100,000. Applicable where aggregate foreign asset value does not exceed INR 5 crore.
Valuation Rules of Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
The Fair Market Value (FMV) is generally the higher of the cost of acquisition OR market value as on 31 March 2026. Special valuation rules are prescribed for Quoted shares, Unquoted shares, Foreign real estate, LLP interests, Partnership interests, bank accounts, and Jewellery and bullion
Special Rule for Foreign Bank Accounts
For foreign bank accounts, the value is not the closing balance. Instead, value equals Total deposits made into the account from the date of opening till 31 March 2026. However, certain redeposits and previously disclosed amounts can be excluded. This may significantly increase the declared value compared to the actual balance in the account.
Filing Process of Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
The scheme is completely online.
| Form | Purpose |
|---|---|
| Form 1 | Declaration |
| Income tax Form 2 | Order determining amount payable |
| Form 3 | Intimation of payment |
| Income tax Form 4 | Certificate of valid declaration |
Payment Timeline of Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
- 2 months from the end of the month of receipt of Form 2 order without interest.
- Additional 2 months allowed with 1% monthly interest.
- Failure beyond this period results in loss of scheme benefit.
Benefits of FAST-DS
Upon valid declaration and payment:
- No further tax under the Black Money Act on disclosed assets/income.
- Immunity from prosecution under the Black Money Act.
- No penalty under the Black Money Act.
- Declared income/assets will not be included again in taxable income.
Restrictions of Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
- The scheme does not apply where assets or income represents proceeds of crime and PMLA proceedings are pending. and assessment has already been completed under the Black Money Act for the same asset/income.
- Further, after making a declaration of no revision of past assessments, taxpayers have No claim of relief or set-off in appeals relating to such assets.
Key Takeaway of Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
FAST-DS 2026 is a limited-period compliance window for small taxpayers with foreign assets. It is especially beneficial where:
- Foreign assets were omitted from Schedule FA.
- The foreign bank accounts were not disclosed.
- Foreign income escaped taxation.
- The total value remains within the prescribed limits of INR 1 crore or INR 5 crore, as applicable.
The scheme offers immunity from Black Money Act consequences but requires careful valuation and eligibility verification before filing
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