New Delhi: The government has opened a one-time disclosure window for small taxpayers to declare certain undisclosed foreign assets and income, offering eligible individuals an opportunity to regularise overseas holdings without facing penalties and prosecution, subject to prescribed conditions.
The Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS), 2026 will come into effect from August 16, 2026, and declarations can be submitted electronically until December 31, 2026. The Central Board of Direct Taxes (CBDT) notified the scheme following its announcement in the Union Budget 2026-27.
The scheme has been designed particularly to address cases involving taxpayers such as students, young professionals, technology employees and relocated NRIs who may have inadvertently failed to disclose overseas assets or income in their tax returns.
Under the first category, taxpayers who did not disclose their overseas income or assets can disclose assets or income valued at up to ₹1 crore. The Budget had proposed payment of 30 per cent of the fair market value of the asset or undisclosed income as tax, along with an additional 30 per cent amount in lieu of penalty, providing immunity from prosecution.
A second category covers taxpayers who had already disclosed their overseas income or paid the applicable tax but failed to report the foreign asset acquired from that income. For such cases, the eligible asset value can be up to ₹5 crore, with a prescribed fee of ₹1 lakh for immunity from penalty and prosecution.
The scheme covers specified overseas holdings, including foreign bank accounts, immovable property, shares, securities, jewellery, artwork and other eligible assets, subject to the conditions and valuation rules notified by the CBDT.
The initiative is aimed at improving voluntary tax compliance while providing a limited opportunity for smaller taxpayers to correct past disclosure lapses. The government had announced the measure in the Budget as part of its broader direct-tax reforms focused on simplifying compliance and reducing difficulties faced by individual taxpayers.
With the disclosure window closing on December 31, 2026, eligible taxpayers will have a limited period to assess their overseas holdings, make the required declaration and complete the prescribed payment and compliance process.