Foreign assets disclosure scheme 2026

 

The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, announced in the Union Budget 2026, offers a 6-month window for taxpayers to voluntarily disclose previously unreported foreign assets and income.

It provides immunity from penalties and prosecution under the Black Money Act, 2015, specifically targeting small taxpayers with assets generally up to ₹1 crore.

Key Features of FAST-DS 2026

Target Audience: Primarily for residents, returning NRIs, and individuals who missed reporting foreign assets (bank accounts, ESOPs, shares) in their Income Tax Returns (ITR).

Duration: A time-bound, one-time 6-month window.

Benefits: Immunity from prosecution and penalty under the Black Money Act, 2015, which otherwise imposes high penalties.

Compliance: Taxpayers must pay 30% tax on the undisclosed asset value plus applicable penalties/fees, often structured around a 30% penalty rate.

 

Important Considerations

Threshold: Focuses on smaller, often unintentional, non-disclosures rather than large-scale evasion.

Consequences of Inaction: Failure to use this window could lead to strict actions under the Black Money Act, including a 30% tax rate plus a penalty equal to the tax (totalling 60% of the asset value).

Process: Declarations must be made voluntarily, with payment, before the specified deadline.

Commencement – The Critical Distinction

Despite being enacted, the scheme contains a specific commencement clause, which provides that: it shall come into force “from such date as may be notified by the Central Government.”