Government rolls out foreign asset disclosure scheme for small taxpayers
Taxpayers will pay a 30% tax on the value of the declared undisclosed foreign asset or income, plus an additional amount equal to the tax, effectively taking the levy to 60%
On August 15, 2026, the Indian Income Tax Department introduced a voluntary disclosure scheme, FAST-DS, to encourage small taxpayers to declare undisclosed foreign assets and income. The scheme, announced in the 2026-27 Budget, will be operational from September 16, 2026, with online declarations due by December 31, 2026.
Under FAST-DS, taxpayers, including students, young professionals, technology employees, and relocated non-resident Indians, can pay an effective 60% tax on undisclosed foreign assets or income, with a threshold of ₹1 crore for assets and ₹5 crore for other declarations. The fair market value of assets is determined as of March 31, 2026.
Two categories of declarations exist: one for assets or income not previously offered to tax, and another for assets already offered but not reported. The scheme provides immunity from further penalties, prosecution, and the declared income or assets not being included in the taxpayer's total income under tax laws.
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