The Indian Government has launched a one-time tax disclosure scheme allowing small taxpayers to report certain undisclosed foreign assets and income by 31 December 2026. The Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS) was announced in the 2026–27 Union Budget. The Income Tax Department said the move seeks to bring eligible overseas assets and earnings into the tax net, while providing relief from additional penalties and prosecution.
According to a report, the scheme applies to taxpayers with undisclosed foreign income of up to Rs10m ($104,614). For this category, the tax rate is 30%, along with an additional amount equal to the tax, resulting in a 60% effective levy on the disclosed sum. FAST-DS also has a separate track for foreign assets worth up to Rs50m.
This covers assets that have already been offered to tax, or were acquired when the taxpayer was a non-resident, but were not shown in the relevant schedule of the income tax return. In such cases, taxpayers can regularise their position by paying a flat fee of Rs100,000, reported, citing government details. The fair market value of assets declared under the scheme will be computed as on 31 March 2026.
Finance Minister Nirmala Sitharaman first outlined FAST-DS in the Budget speech on 1 February 2026. The initiative is directed at small taxpayers such as students, young professionals, technology sector employees and non-resident Indians who may have omitted eligible foreign holdings from their filings. The Press Trust of India reported that the Central Board of Direct Taxes (CBDT) has now notified the scheme.
Online filing of declarations began on 16 August 2026. The CBDT said FAST-DS "enables eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee", as cited by NDTV Profit. Taxpayers making valid declarations will receive immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, for the income or assets disclosed.
The CBDT also clarified that the declared income, or the amount invested in the disclosed asset, will not be added to the taxpayer's total income under the Income-tax Act, 1961 or under the Black Money Act. The government has fixed 31 December 2026 as the last date for filing declarations under FAST-DS. "India launches limited tax amnesty for small foreign asset disclosures" was originally created and published by The Accountant, a GlobalData owned brand.
Extract — continue reading at the source.
