India’s tax authorities have introduced the FAST-DS scheme, allowing small taxpayers to declare undisclosed foreign holdings with a deadline of 31 December 2026, amid increased data sharing and enhanced transparency measures.
India’s tax authorities have opened a limited window for small taxpayers to regularise overseas holdings, with the Foreign Assets of Small Taxpayers Disclosure Scheme, or FAST-DS, set to run until 31 December 2026. According to reporting in the Economic Times and Mint, the move is part of a broader effort to use foreign account data gathered through international information-sharing systems to improve compliance and reduce disputes before they escalate. The scheme is aimed at people such as students, young professionals, technical staff and non-resident Indians who may have failed to report assets abroad.
The Income Tax Department says the scheme takes effect from 16 August and allows eligible taxpayers to make online declarations until the end of the year. Under the rules described in the notification and explained in tax reporting, the declared foreign assets will be valued as of 31 March 2026. The government has framed the initiative as a one-time chance to settle legacy non-disclosure rather than a routine amnesty.
Two categories are covered. One applies to undisclosed foreign assets or foreign income, provided the total value does not exceed ₹1 crore. The second is for foreign assets that were already taxed, or were acquired while the taxpayer was a non-resident, but were omitted from the relevant return schedule; that category carries a ceiling of ₹5 crore and a separate fee of ₹1 lakh. Tax specialists quoted in coverage of the Finance Bill, 2026, say the scheme is designed to address inadvertent omissions, old foreign bank accounts and legacy employee benefits such as overseas stock awards.
The financial cost is steep. The department says taxpayers must pay tax at 30% of the value of the foreign asset or income, plus a penalty equal to that amount. In one example cited by the tax office, a declared foreign bank account and income totalled a tax bill equal to the combined value of the tax and penalty. Once a declaration is accepted, the taxpayer is shielded from further tax, penalty or action under the Black Money Act, and the amount will not be counted as part of total income.
At the same time, the Income Tax Department has been expanding the information available to filers through its e-filing portal. Mint reported that a new Foreign Assets Information report now shows overseas financial data received from foreign jurisdictions, a step officials say will help taxpayers check what the department already knows before they file returns or use the disclosure scheme. That combination of greater data visibility and a short compliance window suggests the government is trying to nudge taxpayers towards voluntary regularisation before enforcement tightens further.
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