India has opened a limited tax window for taxpayers who left overseas income or assets out of earlier returns. The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, or FAST-DS, took effect on August 16 and accepts declarations until December 31, 2026. The Income Tax Department’s FAST-DS FAQs confirm both dates.
The relief covers smaller cases involving foreign bank accounts, employer shares, overseas brokerage holdings, and property. Certain non-residents and RNOR taxpayers can also qualify if they were Indian residents in the year linked to the income or asset purchase. Citizenship alone does not decide eligibility.
What Has The New Foreign Asset Disclosure Window Changed?
FAST-DS was announced in Union Budget 2026 for taxpayers such as students, young professionals, technology employees and relocated NRIs who may have missed overseas disclosures. The final scheme creates two routes.
The first covers undisclosed foreign assets or foreign income that was taxable in India but never offered to tax. Their combined value cannot exceed ₹1 crore. The second covers an overseas asset acquired from income already taxed in India, or acquired while the person was non-resident, but later omitted from the relevant foreign-asset schedule after becoming resident. That route permits assets up to ₹5 crore. The two routes are set out under Section 133 of the Finance Act, 2026.
The Income Tax Department has also shared the scheme update through its official Income Tax India account on X, giving taxpayers a direct government source for the rollout.
Which Overseas Bank Accounts, Shares And Property Can Be Reported?
The FAST-DS valuation rules show that the scheme extends beyond a forgotten savings account. A taxpayer may report different foreign holdings in one electronic Form 1, provided the person and asset meet the conditions.
- Foreign bank accounts, including accounts containing deposits that were not properly disclosed.
- Quoted foreign shares and securities, including eligible listed equity holdings.
- Unquoted shares and other securities, subject to prescribed valuation methods.
- Houses, apartments, land and other immovable property outside India.
- Bullion, jewellery, precious stones, paintings, sculptures and archaeological collections held overseas.
- Interests in foreign partnerships, associations of persons or LLPs, plus other qualifying assets.
- Foreign-source income taxable in India but not previously offered to tax.
For a foreign bank account, the scheme does not simply use the closing balance. Value is generally based on deposits made from the opening of the account up to March 31, 2026, with adjustments to avoid double counting, including qualifying redeposits of withdrawn money. Property and many other assets are generally valued using the higher of acquisition cost and prescribed open-market value.
This could affect employees holding overseas ESOPs, investors using foreign trading platforms, families with legacy property abroad, or former students who kept bank accounts after returning. Eligibility still depends on the source, residency history, and earlier tax reporting. The normal Schedule FA reporting framework also covers several categories of overseas financial interests.
How Much Tax Or Fee Will Taxpayers Pay?
The payment depends on why the asset or income was missing.
For the ₹1 crore category, the declarant pays 30% tax on the foreign asset’s value as of March 31, 2026, or on undisclosed foreign income, plus another amount equal to 100% of that tax. Effectively, the total can equal 60% of the declared amount. The department’s example shows a ₹60 lakh foreign bank account and ₹20 lakh of foreign income producing a ₹48 lakh payment.
The ₹5 crore category works differently. Where income was already taxed, or the asset was acquired from foreign income while the taxpayer was non-resident and only the disclosure was missed later, the fee is ₹1 lakh. A valid declaration followed by payment brings immunity from further tax, penalty, and prosecution under the Black Money Act for the declared item.
How To File And Who Cannot Use The Window?
Declarations must be filed electronically in Form 1. Evidence of the asset’s acquisition or foreign income must be uploaded, with valuation reports where required. After verification, the authority issues Form 2 showing the amount payable. Payment is normally due within two months from the end of the month in which that order is received. Form 3 reports payment, while Form 4 certifies it.
The scheme is unavailable for income or assets representing proceeds of crime where proceedings have begun or are pending under the Prevention of Money-laundering Act. It also excludes an assessment year where Black Money Act assessment proceedings have already been completed, according to Section 140.
Taxpayers with old overseas accounts, shares or property should compare records with earlier ITRs and Schedule FA before filing. False material particulars or breached conditions can invalidate a declaration, so asset values and supporting papers need careful checking.
FAQs
Who can use FAST-DS 2026?
Residents and NR or RNOR taxpayers who were residents in the relevant year may qualify.
What is the last date for FAST-DS declarations?
Eligible taxpayers must submit the online declaration no later than December 31, 2026, under FAST-DS.
Can overseas property be declared under the scheme?
Yes, qualifying foreign property can be declared using prescribed fair market value rules and documents.
Does a valid declaration provide immunity?
A valid declaration and full payment provide Black Money Act tax, penalty and prosecution immunity.
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