Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026

(“FAST-DS”) — a one-time window to regularise undisclosed foreign assets and income before 31 December 2026

1.    Background

The Indian Government has introduced the Foreign Assets of Small Taxpayers- Disclosure Scheme, 2026 (FASTDS 2026), a one-time amnesty scheme allowing eligible taxpayers to voluntarily disclose foreign assets or foreign income that were not previously reported, in exchange for a defined, reduced payment and- critically- automatic statutory immunity from Black Money Act penalty and prosecution.

2.    Key dates

Window: 16 August 2026 – 31 December 2026     Valuation date: 31 March 2026

Who qualifies: Individuals who were Resident and Ordinarily Resident (ROR) in India when the asset was acquired or the income arose including returning NRIs/RNORs for the period they were resident regardless of their residential status today.

3.    Important definitions

Undisclosed asset located outside India: means an asset (including financial interest in any entity) located outside India, held by the assessee in his name or in respect of which he is a beneficial owner, and he has no explanation about the source of investment in such asset or the explanation given by him, is in the opinion of the Assessing Officer, unsatisfactory

Undisclosed foreign income: means the total amount of income of an assessee from a source located outside India which was chargeable to tax in India but has not been offered to tax under the Income-tax Act, 1961.

4.    Disclosure categories

	Category 1 — Undisclosed asset or income	Category 2 — Asset unreported, income already taxed
Threshold	Aggregate FMV up to Rs 1 crore	Aggregate FMV up to Rs 5 crore
Cost	30% tax on value of undisclosed asset located outside India and undisclosed foreign income, plus an additional amount equal to 100% of that tax — an effective outlay of ~60% of declared value	Flat fee of Rs 1 lakh, irrespective of asset value

5.    Process and Immunity

▪         Form 1 (declaration): The declaration is to be filed in Form 1 electronically, to the prescribed income-tax authority.

▪         Form 2: The tax authority issues Form 2 (computation) within one month. The amount must be paid within two months of Form 2 (extendable by two months at 1% interest per month) followed by filing of Form 3 as proof of payment within such period allowed for payment.

▪         On verification, the Income tax authority will issue an order certifying the payment in Form 4 (certificate of immunity from tax, penalty and prosecution on the disclosed items) within one month from the end of the month in which Form 3 is received.

▪         This scheme is not available in respect of any income or asset where a Black Money Act assessment is already completed, or where the asset represents proceeds of crime under PMLA.