Introduction
In the Union Budget 2026, the Government of India introduced the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026. This one-time compliance window is a significant “reset” button for resident individuals who may have inadvertently failed to report foreign income or assets in their previous tax filings.
Frequently Asked Questions (FAQ)
Q.1 Who is eligible to make a declaration under this Scheme?
Ans: Any person who is or was a resident in India in the relevant period and who satisfies the conditions specified in the Scheme may make a declaration.
Q.2 Who are the people who can take advantage of this scheme?
Ans: Many taxpayers can take advantage of this scheme, including but not limited to –
- employees of multinational technology companies receiving ESOPs or RSUs from foreign employers who have not reported such assets;
- former students retaining dormant or low-balance foreign bank accounts after completion of studies abroad;
- returning non-residents with undisclosed foreign savings or insurance policies; and
- mission employees or other personnel on deputation abroad.
Q.3 What types of income or assets can be disclosed under the Scheme?
Ans: The Scheme covers—
(a) undisclosed foreign income;
(b) undisclosed assets located outside India; and
Q.4 What are the monetary limits to be eligible under the Scheme?
Ans: For “undisclosed assets located outside India” or “undisclosed foreign income”, the Scheme applies where the aggregate value does not exceed ₹ 1 Crore as on 31st march 2026.
Q.5 What are the monetary limits under this scheme for foreign assets that were taxed but not reported?
Ans: For foreign assets acquired from disclosed income or during status as a non-resident, the value of the asset must not exceed ₹ 5 Crore as on 31st March 2026.
Q.6 What is the amount payable where “undisclosed assets located outside India” or “undisclosed foreign income” are declared?
Ans: The declarant is required to pay tax at the rate of 30 per cent of the value of the undisclosed foreign asset as on 31 March 2026 or of the undisclosed foreign income, as the case may be, together with an additional amount equal to 100 per cent of such tax. The total amount payable will be 60% of the value of the asset or foreign income, as the case may be.
Q.7 What is the amount payable where the foreign asset is explained but not reported?
Ans: Where the foreign asset was acquired during non-resident status or from income already offered to tax in India but was not disclosed in the relevant return schedules, a flat fee of ₹ 1 Lakh is payable, subject to the value threshold.
Q.8 What is the manner of making a declaration under the Scheme?
Ans: A declaration under the Scheme shall be made electronically in the prescribed form and verified in the prescribed manner, within the period notified by the Central Government.
Q.9 What is the time limit for payment of the amount determined?
Ans: The declarant is required to pay the amount determined within two months from the end of the month in which the order is received. A further extension of two months is permitted, and no extension beyond this period is allowed.
Q.10 Does the Scheme grant immunity from penalty and prosecution?
Ans: Yes. A declarant who makes a valid declaration and pays the prescribed amount shall be granted immunity from levy of tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in respect of the income or asset so declared.
Conclusion
The FAST-DS 2026 is a welcome shift from “aggressive enforcement” to “facilitated compliance.” This scheme provides a golden window to help “clean up” their balance sheets without the fear of the penalties typical of the Black Money Act.
Given the increasing efficiency of the Automatic Exchange of Information (AEOI) between countries, this window should be viewed as a final opportunity to regularize global holdings before the tax department initiates its own inquiries.