India’s FAST-DS scheme, opening on August 16, 2026, provides a simplified yet potentially costly route for taxpayers to disclose foreign assets, with complex maths determining the final payment, aiming to encourage voluntary compliance.
The arithmetic behind India’s new Foreign Assets of Small Taxpayers Disclosure Scheme is simple, but easy to misread. Under the first category, an eligible taxpayer who comes forward with an undisclosed foreign asset or foreign income of up to ₹1 crore does not pay the full value back to the exchequer. Instead, the charge is 30% of the amount disclosed, plus an additional sum equal to that tax, taking the effective outgo to 60%. Business Today noted that a ₹1 crore disclosure would therefore translate into a payment of ₹60 lakh.
That is why a foreign bank balance, overseas securities holding or other offshore asset worth ₹1 crore would trigger a tax bill of ₹30 lakh and an equal additional amount of ₹30 lakh. The same formula applies to undisclosed foreign income. If the amount is ₹20 lakh, the tax would be ₹6 lakh and the extra levy another ₹6 lakh, for a total of ₹12 lakh. Business Today also cited the official FAQ’s example of a ₹60 lakh foreign bank account and ₹20 lakh of undisclosed foreign income, which produces a combined payment of ₹48 lakh.
The scheme, often referred to as FAST-DS, opens on August 16, 2026 and runs until December 31, 2026, according to Business Today’s report. It is aimed at eligible residents, while certain non-residents and resident but not ordinarily resident taxpayers can also qualify if they were Indian residents when the foreign income arose or when the asset was acquired. The disclosure route is available where a return was never filed, where overseas assets or income were left out of a filed return, or where such income has escaped assessment.
The first category is not the only route. A separate category covers some foreign assets that had already been taxed in India, or were acquired when the taxpayer was non-resident, but were omitted from the relevant return schedule. That category carries a higher ₹5 crore threshold and a flat ₹1 lakh fee, according to the material cited by Business Today. ClearTax said the scheme, introduced in the Union Budget 2026, is intended as a one-time voluntary window and offers immunity from penalty and prosecution if taxpayers comply with the conditions.
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