The Central Government has operationalised the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), providing eligible taxpayers a one-time opportunity to voluntarily disclose certain previously undisclosed foreign assets or foreign income.

The Scheme is contained in Chapter IV (Sections 130 to 144) of the Finance Act, 2026 and has been made operational through CBDT Notification No. 114/2026 dated 14 August 2026 (G.S.R. 732(E)). It has come into force from 16 August 2026.

Who Can Benefit from FAST-DS 2026?

The Scheme is particularly relevant for taxpayers who may have missed reporting foreign income or assets in their Indian income-tax returns.

As clarified in the CBDT FAQs, situations may include:

• Employees who received foreign ESOPs or RSUs but did not properly report them.
• Former students who continue to hold dormant or low-balance foreign bank accounts.
• Returning NRIs with foreign savings, investments or insurance policies.
• Persons who worked or were deputed abroad and retained foreign assets.
• Taxpayers who inadvertently failed to disclose eligible foreign assets in the relevant Schedule FA of their income-tax return.

Eligibility is subject to the detailed conditions and exclusions prescribed under the Scheme.

Two Categories of Disclosure

Under Section 133 of the Finance Act, 2026, the Scheme broadly provides two routes:

1. Undisclosed Foreign Assets or Foreign Income – Up to Rs. 1 Crore

Where the aggregate value of eligible undisclosed foreign assets/income does not exceed Rs. 1 crore, the amount payable comprises:

• Tax at 30%, plus
• An additional amount equal to 100% of the tax.

Accordingly, the effective payment works out to 60% of the amount determined under the Scheme.

2. Specified Foreign Assets – Up to Rs. 5 Crore

Where foreign assets were acquired from income earned while the taxpayer was a non-resident or from income already offered to tax in India, but the assets were not appropriately reported, eligible assets having an aggregate value up to Rs. 5 crore may be declared by paying a fixed fee of Rs. 1 lakh.

Valuation and Filing

Under the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026, the prescribed valuation date is 31 March 2026.

Key procedural points include:

• Declaration must be filed electronically in Form 1.
• The prescribed authority will issue an order determining the amount payable in Form 2.
• Payment details are communicated through Form 3.
• Upon compliance with the prescribed requirements, a certificate is issued in Form 4.

Taxpayers should carefully determine the fair market value of foreign assets in accordance with the valuation rules before filing the declaration.

Last Date: 31 December 2026

The final date for making a declaration under FAST-DS 2026 is 31 December 2026.

CBDT's FAQs specifically clarify that no declaration can be filed after this date. Eligible taxpayers should therefore review their earlier income-tax returns, foreign bank accounts, investments, ESOPs, RSUs and other overseas assets well before the deadline.

Why Taxpayers Should Review Their Foreign Assets Now

FAST-DS 2026 offers a significant one-time compliance opportunity for eligible taxpayers to regularise specified historical non-disclosures. A valid declaration, subject to fulfilment of the Scheme's conditions and payment requirements, provides specified protection from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for matters covered by the declaration.

However, the Scheme contains eligibility conditions and exclusions. Taxpayers should therefore verify the source, acquisition period, residential status and valuation of each foreign asset before opting for the Scheme.