Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS)

Recently, the Government of India notified a one-time voluntary disclosure scheme, known as the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS).

About FAST-DS

The FAST-DS is a one-time voluntary disclosure scheme contained in Chapter IV of the Finance Act, 2026. It provides eligible taxpayers an opportunity to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets by paying the prescribed tax or fee.

The term asset under the scheme includes immovable property, jewellery, artistic works, shares, securities and other assets or income.

Two Categories Covered Under the Scheme

Category 1: Undisclosed Foreign Assets or Income

This category covers an undisclosed foreign asset or foreign income that was not previously offered to tax, provided that the aggregate value does not exceed ₹1 crore.

Under this category, the taxpayer is required to pay 30% of the fair market value of the asset or 30% of the undisclosed income as tax, along with 30% as additional income tax in lieu of penalty. This enables the taxpayer to obtain immunity from prosecution.

Category 2: Foreign Assets Already Taxed but Not Reported

This category covers foreign assets that were already offered to tax or were acquired when the taxpayer was a non-resident, but were not reported in the relevant foreign-asset schedule of the income-tax return.

The threshold for declarations under this category is ₹5 crore.

For such declarations, immunity from both penalty and prosecution is available upon payment of a ₹1 lakh fee.

Immunity under FAST-DS

Taxpayers making valid declarations under the scheme receive immunity from further tax or penalty and from prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.