The Central Board of Direct Taxes (CBDT) and the Finance Ministry have introduced a new voluntary disclosure scheme, giving major relief to small taxpayers holding undisclosed assets abroad, foreign bank accounts, shares in foreign companies (ESOPs/RSUs) or foreign income. FAST-DS (Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026) Has been notified. This scheme will be effective from 16 August 2026 and will remain in force till 31 December 2026. If any Indian resident taxpayer knowingly or unknowingly did not declare the details of foreign assets in 'Schedule FA' of his Income Tax Return (ITR), then this is his last legal chance to avoid the risk of heavy penalty and jail under the Black Money Act.
What is FAST-DS scheme and who will get its benefit?
FAST-DS is a one-time compliance window introduced by the Central Government for small taxpayers, students who have previously studied abroad, employees working in multinational companies (who have acquired overseas stocks) and returning NRIs who have returned to India.
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Under the Black Money Act 2015, non-disclosure of foreign assets attracts 30% tax on the fair market value (FMV) of the asset along with a hefty penalty of up to 90% (total 120%) and a fine of ₹10 lakh per annum.
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Under the FAST-DS scheme, taxpayers can get complete statutory immunity from legal actions, suits and heavy fines by paying fixed taxes or fees.
Calculation of taxes and fees under the scheme: 2 main categories
Two different categories have been created under this scheme based on the type of assets and earnings:
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Category 1: Fully Undisclosed Assets/Income up to ₹1 Crore:
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Eligibility Limit: The combined aggregate value of undisclosed foreign assets and foreign income should not exceed Rs 1 crore (assessment date March 31, 2026).
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Total Amount Payable (60%): At the fair market value of the asset or income 30% flat tax And equal to that tax (100%) Additional Fee/Penalty (30%)that is, the total value of the property 60% The government will have to pay.
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Example: If someone has undisclosed assets worth Rs 50 lakh, then a total of Rs 30 lakh will have to be paid including Rs 15 lakh tax and Rs 15 lakh additional duty. After this no legal action will be taken under the Black Money Act.
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Category 2: Technical Default Assets (Taxes Already Paid up to ₹5 Crore):
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Eligibility Limit: The limit of up to ₹5 crore has been kept for taxpayers who had already paid tax on their foreign income or whose wealth was created while being an NRI but simply forgot to report it in Schedule FA of the ITR.
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Flat Fee: Instead of any major tax in this category only ₹1,00,000 (Rs 1 lakh) The property can be legalized by paying a lump sum flat fee of Rs.
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Which foreign assets come under its purview?
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Open savings, current or fixed deposit accounts in foreign banks.
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Shares, ESOPs, RSUs or mutual funds of foreign tech companies.
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Immovable property (house, flat or land) purchased abroad.
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Cryptocurrencies and Virtual Digital Assets (VDAs) held in foreign exchanges or wallets.
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Shares in foreign trusts or property inherited from a relative abroad.
Planning deadlines and important dates
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Start date: 16 August 2026.
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Last date: 31 December 2026 (No declaration will be accepted after this).
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Valuation Date: The fair market value of the properties will be decided on the basis of 31 March 2026.
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Taxpayers will have to file online declaration by filling Form 1 electronically.