FAST-DS Scheme: Disclose Foreign Assets at 60% Tax Till 31 December 2026
Why in the news
The tax authorities opened a limited-time window for small taxpayers to come clean on overseas assets or income they failed to report, such as foreign accounts, ESOPs or property.
Key facts
- Full form: Foreign Assets Disclosure Scheme for Small Taxpayers.
- Legal basis: Finance Act, 2026 (Chapter IV); announced in Union Budget 2026-27.
- Window: 16 August to 31 December 2026, with 31 March 2026 as the valuation date.
- Filing: online, using Form 1.
- Benefit: protection from further tax, penalty and prosecution under the Black Money Act, 2015.
The two categories
| Feature | Category A | Category B |
|---|---|---|
| Nature of asset | Foreign asset or income that was never taxed | Asset already taxed or bought while non-resident, but missing from the ITR foreign-asset schedule |
| Value limit | Rs 1 crore on 31 March 2026 | Rs 5 crore |
| Payment | 30% tax plus an equal additional amount, effectively 60% | Flat fee of Rs 1 lakh |
| Above limit | Not eligible | Not eligible |
Eligibility
- The assessee should have been a resident of India in the relevant year.
- A non-resident or RNOR can qualify if resident when the income arose or the asset was acquired.
- Covers items missed in an earlier return, or income escaping assessment under Section 147.
Background
- Black Money Act, 2015 normally levies 30% tax and a 90% penalty, plus prosecution; merely not reporting an asset draws a Rs 10 lakh penalty.
- Data now flows to the department through CRS and FATCA, and many small cases stem from oversight, so a one-time window avoids litigation.
- Earlier precedents: the 2015 compliance window and the 2016 Income Declaration Scheme.
Exam angle
- Authority: CBDT; Form 1; valuation date 31 March 2026.
- Category A: 60% effective; Category B: Rs 1 lakh fee.
- Linked law: Black Money Act, 2015.