Summary of this article
FAST-DS 2026 offers a one-time foreign asset disclosure window.
Eligible taxpayers can file declarations until December 31, 2026.
Payments vary between 60 per cent and Rs 1 lakh.
An old overseas bank account, shares received from a foreign employer or an asset acquired while working abroad can create a tax problem if it was missed in an Indian tax return. The Foreign Assets of Small Taxpayers-Disclosure Scheme, 2026, or FAST-DS 2026, has now opened a one-time route for eligible taxpayers to disclose such assets or income.
The scheme came into force on August 16, 2026, and the last date for filing a declaration is December 31, 2026. No declaration can be filed after this date.
The issue arises mainly through Schedule FA in Income-tax Return (ITR) Forms 2 and 3. Ordinarily resident taxpayers have to report their foreign assets, income and beneficial ownership, even where the foreign income itself is not taxable in India. Failure to report can attract a penalty of Rs 10 lakh, along with prosecution under the Black Money Act, 2015.
Two Routes Under FAST-DS 2026
The scheme draws a line between two types of reporting lapses.
The first route covers undisclosed foreign assets or foreign income where the combined value does not exceed Rs 1 crore. The taxpayer has to pay tax at 30 per cent and an additional amount equal to 100 per cent of the tax. The total outgo therefore works out to 60 per cent of the declared value.
The second route covers certain foreign assets worth up to Rs 5 crore where the underlying income had already been offered to tax in India, or where the asset was acquired from income earned while the taxpayer was non-resident but was not subsequently reported. A flat fee of Rs 1 lakh applies in this category.
The scheme can cover cases involving overseas bank accounts, foreign investments and other assets that were left out of earlier returns, subject to the eligibility conditions.
What Taxpayers Need To Check
The valuation date under the scheme is March 31, 2026. Different valuation rules apply to different asset classes. For a foreign bank account, the calculation is not simply the balance available on that date. The rules take into account deposits made from the date the account was opened, subject to specified exclusions.
The declaration has to be filed online in Form 1, along with documents supporting the asset or income and a valuation report where required. The Income Tax Authority communicates the amount payable through Form 2. After payment, Form 3 has to be filed with proof of payment, followed by the final order in Form 4.
A valid declaration and payment within the prescribed timeline provide immunity from further tax, penalty and prosecution under the Black Money Act for the declared asset or income covered by the scheme.
The window, however, is not available for every foreign asset. It excludes specified cases involving proceeds of crime and cases where assessment proceedings under the Black Money Act have already been completed.
