FAST-DS 2026: Foreign Assets Disclosure Scheme for Small Taxpayers – Key Highlights
The CBDT has introduced FAST-DS 2026 (Foreign Assets of Small Taxpayers Disclosure Scheme), a one-time voluntary disclosure opportunity for taxpayers to regularize certain undisclosed foreign assets and foreign income and obtain relief under the Black Money Act.
What is FAST-DS 2026?
FAST-DS is a voluntary disclosure scheme that allows eligible taxpayers to disclose:
- Undisclosed foreign assets
- An undisclosed foreign income
- Foreign assets that should have been reported but were not disclosed
after paying the prescribed tax or fee.
The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) is a one-time compliance window introduced under the Finance Act, 2026 for eligible taxpayers to voluntarily disclose certain foreign assets and foreign income and obtain immunity under the Black Money Act, 2015.
FAST-DS 2026 is aimed at small taxpayers who have inadvertently failed to disclose foreign assets or income. Taxpayers with foreign bank accounts, overseas shares, US RSUs/ESOPs, foreign properties, inherited foreign assets or reporting lapses can regularize their position by filing before 31 December 2026 and obtain immunity from harsh consequences under the Black Money Act, provided they satisfy all eligibility conditions.
Key Dates under Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS)
The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, a one-time compliance opportunity introduced under Chapter IV (Sections 130-144) of the Finance Act, 2026, for taxpayers having undisclosed foreign assets or foreign income. The following are important dates for FAST-DS 2026 under Foreign Assets: Disclosure Scheme:
- Scheme Effective From: 16 August 2026
- Last Date to File Declaration: 31 December 2026
- Valuation Date (FMV): 31 March 2026
- No declarations can be filed after 31 December 2026.
| Particulars | Date |
| Scheme Start Date | 16 August 2026 |
| Last Date for Declaration | 31 December 2026 |
| Valuation Date | 31 March 2026 |
No declaration can be filed after 31 December 2026
Who Can Use the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS)?
The scheme is available to:
Resident Indians: A person who was resident in India in the relevant year.
NR or RNOR: Even if currently NR or RNOR, a person can use the scheme if:
- NR or RNOR were resident in India when the undisclosed foreign income was earned; or
- They were residents when the foreign asset was acquired.
In summary, the following apply to this scheme: Eligible persons include residents of India for the relevant previous year and current NRs/RNORs who were residents when the foreign income was earned or the foreign asset was acquired.
When Can a Declaration Be Made?
When Can a Declaration Be Made: Where the taxpayer did not file an ITR under Section 139. Filed an ITR but failed to disclose the foreign asset/income. and has income or assets that escaped assessment u/s 147. so A declaration can be made if:
- Situation-1: No income tax return was filed.
- Situation-2: ITR was filed, but foreign assets/income were not disclosed.
- Situation-3: Foreign income or assets escaped assessment u/s 147
Two Categories Under Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS)
Category 1: Undisclosed Foreign Asset / Income
- Aggregate value (FMV + foreign income) up to INR 1 crore
- Payable: 30% tax + 100% of tax
- Effective cost: 60% of value disclosed
Category 2: Foreign Asset Already Taxed or Acquired While Non-Resident but Not Reported
- Asset acquired from taxed income or during non-resident status but omitted from disclosure.
- Aggregate value up to INR 5 crore
- Amount payable: Flat INR 1 lakh fee
What If Asset Value Exceeds the Limit?
| Category | Threshold |
| Category-1 | INR 1 crore |
| Category-2 | INR 5 crore |
If limits are exceeded, the scheme cannot be used.
For example:
- Foreign assets worth INR 6.5 crore under Category 2
- Taxpayer becomes ineligible for FAST-DS
Forms Under FAST-DS
| Form | Purpose |
| Form 1 | Declaration |
| Form-2 | The amount payable is determined by the department. |
| Form 3 | Intimation of payment |
| Form-4 | Certificate confirming payment |
Filing Process of FAST-DS 2026 – Filing Procedure
Step 1: File Form 1 electronically.
Step-2: Attach Asset documents, acquisition documents, and Valuation reports wherever required
Step 3: The department issues Form 2 determining the amount payable. The Income Tax Authority issues Form 2, and this specifies the amount payable.
Step 4: Pay within the prescribed time.
Step 5: Submit payment details in Form 3. and Receive Form 4/Certificate from the authority
Payment Timeline of FAST-DS 2026
After Form 2:
- Normal Time: Pay within 2 months.
- Extended Time: Additional period of up to 2 months available. and Interest: 1% per month or part thereof.
- Maximum Time Allowed: 4 months from the end of the month in which Form 2 was issued. Failure to pay within this period causes loss of scheme benefits
Valuation Rules in relation to FAST-DS 2026:
- Asset Valuation Rules: The Fair Market Value (FMV) is general. Higher of Cost of acquisition or Open market value on 31 March 2026
- If valuation is not obtained: Indexed cost is treated as FMV. FMV generally equals the higher of the cost of acquisition or open market value on 31 March 2026. If no valuation report is available, the indexed cost may be treated as FMV. All values must be reported in INR using prescribed RBI exchange rates.
Where market valuation is not carried out, the indexed cost of acquisition is deemed to be the FMV.
Specific Valuation Rules Apply To:
- Bullion, jewellery, precious stones and artistic works
- Quoted and unquoted shares & securities
- Immovable property situated outside India
- Foreign bank accounts, including prescribed exclusions to avoid double counting
- Interest in foreign partnership / AOP / LLP
- Residuary assets
All values are required to be reported in Indian Rupees.
- Foreign currency conversion shall be made as per the prescribed method using the RBI reference rate applicable on the valuation date.
- A variance of up to 20% between the declared FMV and the value subsequently determined by the assessing officer, for assets other than bank accounts, will not by itself invalidate the declaration.
Valuation of Different Assets
- Foreign Property: The higher of purchase cost or market value on 31 March 2026. A valuer’s report from the foreign country is generally required.
- Jewellery, Bullion and Precious Stones: Higher of Cost or Valuation report value Otherwise, an indexed cost applies.
- Quoted Shares: The higher of the cost or the average of highest and lowest market price on valuation date
- Unquoted Shares: Value based on a prescribed valuation formula or indexed cost.
Special Rules for Foreign Bank Accounts
This is one of the most important provisions. The value of a foreign bank account is generally:
Total Deposits Made Since Account Opening
Not merely the account balance. Exclusions Allowed
- Redeposits of previously withdrawn money
- Amounts already declared under the earlier Black Money compliance scheme
This prevents double taxation of the same funds.
Currency Conversion in case of FAST-DS 2026
- All values must be reported in Indian Rupees (INR), and conversion is to be made using the RBI Reference Rate applicable on 31 March 2026.
Effect on Pending Assessments for FAST-DS 2026
Where an assessment is pending The Assessing Officer must consider the declaration while finalizing the assessment order
FAST-DS 2026 Benefits:
- Upon valid declaration and payment, immunity from further tax, immunity from penalty, and immunity from prosecution under the Black Money Act and declared income/assets will not again be included in taxable income under the Income Tax Act or Black Money Act, so the following are benefits of the scheme:
-
- On valid declaration and payment:
- Immunity from further tax, penalty, and prosecution under the Black Money Act.
- Declared income/assets will not be taxed again under the Income-tax Act or Black Money Act.
- Pending assessments must consider the declaration.
- What Cannot Be Claimed?: Once an asset is declared, no rectification, no revision, no set-off, and No additional relief in appeal proceedings for that declared asset/income.
When Is the Scheme Not Available?
- The scheme cannot be used if Proceeds of Crime: The income/asset represents proceeds of crime, and PMLA proceedings have been initiated or are pending. and Black Money Act Assessment Already Completed: The asset/income relates to a year already assessed under the Black Money Act, 2015
- FAST-DS 2026 Not Available For the following assets/income representing proceeds of crime where PMLA proceedings have been initiated. and cases already assessed under the Black Money Act, 2015.
The FAST-DS 2026 provides a limited opportunity until 31 December 2026 for eligible taxpayers to regularize undisclosed foreign assets or income at a predetermined cost and obtain immunity from severe consequences under the Black Money Act. Taxpayers with foreign bank accounts, employee stock option plans and restricted stock units, overseas investments, inherited foreign assets, or historical disclosure lapses should carefully evaluate eligibility and seek professional advice before filing.
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