The Indian Income Tax Department launches the FAST-DS scheme, allowing smaller taxpayers to regularise undisclosed foreign wealth with a one-time amnesty before tougher penalties and enforcement tighten in 2026.
India’s Income Tax Department has opened a short-term route for certain taxpayers to come clean on undisclosed overseas wealth, in a move aimed at encouraging compliance before tougher enforcement. According to the department’s notification, declarations under the Foreign Assets of Small Taxpayers Disclosure Scheme, or FAST-DS, can be filed from 16 August and will remain open until 31 December 2026.
The scheme was first set out in the Union Budget for 2026-27 and is designed for smaller taxpayers, including students, young professionals, technology workers and non-resident Indians returning home. LiveMint reported that the measure is intended to offer a one-time amnesty from prosecution under the Black Money Act for people who failed to report foreign assets or foreign-sourced income.
The rules, notified by the Central Board of Direct Taxes, split declarations into two broad categories. In the first, taxpayers may disclose undisclosed foreign assets or income on which Indian tax has not been paid, provided the total value does not exceed ₹1 crore. In the second, taxpayers can report overseas assets that were already taxed, or were acquired while they were non-resident, but were not entered in the relevant tax return. For that category, the ceiling is ₹5 crore, and a fee of ₹1 lakh applies.
Under the scheme, the tax burden is steep. Informalnewz.com said taxpayers must pay 30% tax and an additional charge of the same amount, taking the effective liability to 60%. The fair market value of assets will be calculated as of 31 March 2026. Tax advisers cited by several publications say the arrangement is meant to regularise low-value or inadvertent omissions, including dormant foreign accounts, overseas employee stock plans and savings left behind after a move abroad.
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