I-T Dept flags undisclosed foreign properties

The Income Tax Department has been actively encouraging taxpayers with undisclosed foreign assets to utilize the Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS). This is a one-time opportunity to declare previously unreported foreign assets and income, according to Finance Ministry sources. To aid taxpayers, the Department has introduced a feature on the e-filing portal, providing access to asset information reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI), also known as CRS/FATCA.

The portal currently displays data from CRS/FATCA signatories up to 2024; however, data from other multilateral frameworks is not publicly displayed due to risk factors and non-disclosure commitments. Intelligence from additional sources is also being gathered by the Department.

At a high-level meeting on October 23, 2026, the department resolved to potentially share relevant information with taxpayers, enabling them to take advantage of the Scheme. Additionally, the Department has reached out to specific taxpayers who have invested in residential or commercial properties in the UAE. Outreach programs will be conducted for taxpayers, corporations as employers, educational institutions, professional bodies, and industry associations.

The Central Board of Direct Taxes (CBDT) has established a committee in each region under the Principal Chief Commissioner to assist taxpayers with their queries and concerns.

Taxpayers who meet the eligibility criteria for FAST-DS can regularize their disclosures within a specified time frame by paying 30% tax on the fair market value, along with an equivalent penalty amount. The entire process is online, trust-based, and self-declaratory. A valid declaration offers immunity from further assessment, penalties, and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Moreover, taxpayers can report assets and income that have already been accounted for, subject to a Rs 1 lakh fee, thereby avoiding the Rs 10 lakh annual penalty under the Black Money Act.

So far, approximately 1,100 taxpayers have submitted applications for the Scheme. The FAST-DS remains open until December 31, 2026.