Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS) 2026

The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS) 2026, a one-time voluntary disclosure mechanism announced in the Union Budget 2026–27.

About FAST-DS 2026

FAST-DS has been introduced under the Finance Act, 2026 to provide eligible taxpayers an opportunity to disclose certain undisclosed foreign assets and foreign income by paying the prescribed tax or fee.

The Scheme came into force on 16 August 2026, and declarations can be filed up to 31 December 2026. The valuation date for assets under the Scheme is 31 March 2026.

Eligibility

The Scheme is available primarily to taxpayers who were resident in India during the relevant previous year. A person who is currently a Non-Resident or Resident but Not Ordinarily Resident (RNOR) may also use the Scheme if they were resident in India in the year to which the undisclosed foreign income relates or in the year when the foreign asset was acquired.

Categories of Declaration

Category I – Undisclosed Foreign Asset/Income

This category covers foreign assets or foreign income that was not previously offered to tax. The aggregate value of such assets and income must not exceed ₹1 crore.

The taxpayer is required to pay 30% tax, along with an additional amount equal to 100% of the tax, making the effective payment 60% of the declared value.

Example: If the declared value is ₹80 lakh, the total payment would be ₹48 lakh.

Category II – Undeclared Foreign Asset

This category covers foreign assets whose income or acquisition value was already offered to tax, or assets acquired when the assessee was a non-resident, but which were not disclosed in the relevant foreign-asset schedule of the income-tax return.

The aggregate value of such assets must not exceed ₹5 crore, and a flat fee of ₹1 lakh is payable.

Valuation of Foreign Assets

The Fair Market Value (FMV) is generally determined as the higher of the cost of acquisition and the open-market value as on 31 March 2026. Foreign-currency values are converted into Indian Rupees according to the prescribed foreign-exchange conversion rules.

Separate valuation provisions apply to assets such as jewellery, securities, unquoted shares, immovable property, foreign bank accounts and interests in foreign partnerships/LLPs.

Benefits

A valid declaration and payment under FAST-DS provide immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in respect of the declared asset or income.

The declared income or the amount invested in the disclosed asset is also not included in total income under the Income-tax Act, 1961 or the Black Money Act, 2015.

However, the declarant cannot subsequently seek rectification or revision of an assessment, or claim set-off or relief in related proceedings concerning the declared income/asset or amount paid under the Scheme.

Exclusions

FAST-DS cannot be used for proceeds of crime where proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002.

It is also unavailable for income or assets relating to an assessment year where proceedings have already been completed under the Black Money Act, 2015.

Significance

FAST-DS 2026 aims to bring small-value undisclosed foreign assets and income into the tax net through voluntary compliance. At the same time, it provides eligible taxpayers with greater certainty and protection from further penalties and prosecution.