Explainer: Government is strict against black money, what is FAST-DS rule; By which the money deposited abroad will come back?

What Is FAST-DS 2026 Scheme: The government not only keeps a close watch on the people living in India, but also keeps a close watch on their property. The government keeps a close watch on those who own property not only in India but also abroad. People owning and depositing property outside India will now have to provide complete information related to the property. If anyone does not do this then strict action will be taken against him under the Black Money Act.

Let us tell you that from July 1, 2026, the government is going to implement the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS). Under this new scheme, people will get a total of six months till December 31, 2026, in which they will have to give information about their overseas properties and income, which were not earlier disclosed in the income tax return. If they do not do so within these six months, action will be taken against them under the Black Money Act.

What FAST-DS 2026 Scheme?

FAST-DS 2026 is a Foreign Assets Disclosure Scheme 2026 for small taxpayers. It was introduced through Clauses 114-128 of the Finance Bill, 2026 and provides a one-time, 6-month voluntary window to eligible taxpayers to disclose foreign assets or foreign income which has either never been taxed or has not been reported in the income tax return. Upon valid disclosure and payment of the stated tax or fees, the taxpayer black money act Provides complete legal immunity from penalty and prosecution as per the (Undisclosed Foreign Income and Assets) Imposition of Tax Act, 2015. This immunity is automatic, not by choice, which is obtained by operation of law after the payment is made.

The scheme is specifically targeted at small and genuine cases, such as unintentional omissions, legacy non-disclosure and ESOP/RSU reporting gaps and does not apply to large-scale offshore tax evasion or any criminal action. This scheme will come into effect from the date which will be notified by the Central Government through official Gazette Declaration.

Government’s eye on small taxpayers

In a report by NDTV, quoting sources, it has been said that this scheme has been brought especially for the middle class and small taxpayers. In this foreign companies These include IT professionals holding Employee Stock Ownership Plan (ESOP), NRIs returning from abroad and students having bank accounts or small assets while studying abroad. This scheme is divided into two different categories. The first category will include undisclosed foreign assets and income up to Rs 1 crore.

On giving information about these properties and income, tax of 60 percent of the market value will have to be deposited. At the same time, in the second category, there is a provision to include foreign assets up to Rs 5 crore, whose income was shown and tax was paid in India, but the information about foreign assets was not given in Schedule FA of the income tax return. In such cases, a fee of Rs 1 lakh will have to be paid only once.

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Why is this rule necessary?

The main objective of the government behind implementing this scheme is to save people from heavy fines imposed under the Black Money Act. Those who give information about their foreign assets within the deadline set by the government, there will be no penalty or criminal action against them under the Black Money Act. This scheme is very special for those who are IT professionals and have returned to India from abroad. This scheme started by the government is the best opportunity for them to correct their old records.