Mumbai, August 15, 2026
FAST-DS 2026 will allow eligible small taxpayers in India to voluntarily disclose certain previously unreported foreign assets or overseas income by December 31, 2026, under rules notified by the Central Board of Direct Taxes.
The Foreign Assets of Small Taxpayers-Disclosure Scheme, known as FAST-DS, will take effect on August 16. Taxpayers covered by the scheme will be able to submit their declarations online until the end of the year.
For undisclosed foreign assets or untaxed overseas income covered by the first category, the taxpayer must pay tax equal to 30% of the declared amount. An additional amount equal to that tax will also be payable, effectively taking the combined payment to 60% of the declared value.
However, a separate category applies to certain foreign assets acquired from income that was already taxed or when the taxpayer was a nonresident. Qualifying declarations in this category will attract a fixed fee of ₹100,000 rather than the tax-and-additional-payment formula.
Who can use FAST-DS 2026?
The voluntary foreign asset disclosure initiative was announced in India’s 2026–27 Union Budget. It is intended to provide relief to smaller taxpayers who may have failed to report overseas assets or income correctly.
Potential beneficiaries may include:
- Students who studied or worked overseas
- Young professionals with foreign accounts or investments
- Technology-sector employees who received overseas shares or stock benefits
- Indians who previously lived abroad
- Nonresident Indians who later became Indian tax residents
- Other eligible taxpayers with relatively small foreign holdings
Eligibility will depend on the nature, value and source of the asset or income. Simply holding an overseas asset does not automatically mean a person can or must use the scheme.
What can taxpayers disclose?
FAST-DS permits eligible taxpayers to report specified foreign income on which tax was not previously paid. It also covers certain foreign assets that should have been reported but were omitted from the relevant income-tax return schedule.
The fair market value of an asset disclosed under the scheme will be determined as of March 31, 2026.
Taxpayers will be able to submit online declarations from August 16 through December 31, 2026. They should review their foreign bank accounts, securities, shares, retirement accounts and other qualifying holdings before filing.
Two disclosure categories and their limits
The scheme divides declarations into two principal categories.
Category 1: Undisclosed foreign assets or untaxed income
The first category covers an asset located outside India that was acquired from income that was not disclosed or taxed. It can also cover previously unreported foreign income.
The aggregate value of the undisclosed foreign assets and income covered by this category cannot exceed ₹10 million, or ₹1 crore.
A taxpayer using this category must pay:
- Tax equal to 30% of the declared amount
- An additional amount equal to 100% of the calculated tax
As a result, the combined payment is equal to 60% of the declared asset value or income.
Category 2: Assets acquired from taxed income or while nonresident
The second category covers foreign assets acquired from income on which tax had already been paid. It may also include assets purchased when the taxpayer was not an Indian resident but later omitted from the applicable foreign asset schedule in an income-tax return.
The maximum value permitted under this category is ₹50 million, or ₹5 crore.
A qualifying declaration under this category requires payment of a fixed ₹100,000 fee.
How much would be payable on an ₹80 lakh declaration?
The CBDT’s frequently asked questions provide an illustration involving an undisclosed foreign bank account valued at ₹60 lakh and undisclosed foreign income of ₹20 lakh.
The total amount declared would be ₹80 lakh. The calculation would be:
| Component | Amount |
|---|---|
| Undisclosed foreign account | ₹60 lakh |
| Undisclosed foreign income | ₹20 lakh |
| Total declaration | ₹80 lakh |
| Tax at 30% | ₹24 lakh |
| Additional amount equal to tax | ₹24 lakh |
| Total payable | ₹48 lakh |
After a valid declaration and full payment under the scheme, the taxpayer would not face another tax or penalty relating to the same disclosed asset or income, subject to the scheme’s conditions.
Will taxpayers receive protection from prosecution?
FAST-DS provides protection from prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, for income or assets validly disclosed under the scheme.
The protection is limited to the specific asset or income included in an accepted declaration. It should not be interpreted as general immunity for unrelated tax violations or assets that remain undisclosed.
The amount invested in a declared asset, or income arising from it, will also not be included again in the taxpayer’s total income under the applicable provisions of the income-tax and black money laws.
What taxpayers should do before filing
Taxpayers considering FAST-DS should gather foreign bank statements, investment records, acquisition documents and evidence showing the source of funds. They should also determine their residential status for the relevant tax years and check whether the asset was already disclosed elsewhere in their returns.
Because the tax treatment differs substantially between the two categories, professional advice may be useful before filing or making a payment.
The Income Tax Department’s detailed FAST-DS frequently asked questions explain the rules, valuation requirements, eligibility conditions and declaration procedure.
This article is an informational news report and does not constitute tax or legal advice.
