{
  "id": 8218461,
  "title": "₹1 cr foreign asset limit under FAST-DS 2026: Details",
  "url": "https://urgent.news/2026/09/18/1-cr-foreign-asset-limit-under-fast-ds-2026-details",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T09:11:10.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/tax/rs-1-crore-foreign-asset-limit-under-fast-ds-2026-what-taxpayers-must-know-about-undisclosed-income/articleshow/134328902.cms"
  },
  "original_language": "en",
  "account": "The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) 2026 introduces a compliance requirement for eligible taxpayers with undisclosed foreign income or assets. However, taxpayers may face a key computational issue when examining their eligibility under the Rs 1-crore limit. This rule applies to the aggregate value of undisclosed foreign assets and income as of March 31, 2026.\n\nFor foreign assets, Rule 3 of the FAST-DS 2026 Rules outlines methods for determining their fair market value on March 31, 2026, and converting foreign-currency values to Indian rupees. Yet, the Scheme Rules do not provide a specific mechanism for valuing undisclosed foreign income. This creates two crucial questions: What method should be used to compute undisclosed foreign income, and how should foreign currency income be converted to Indian rupees?\n\nThe amount of undisclosed foreign income must be calculated and added to the value of undisclosed foreign assets as of March 31, 2026. If there are no undisclosed foreign assets, the undisclosed foreign income itself becomes relevant for determining eligibility and computing the FAST-DS 2026 amount payable - tax at 30% of the amount plus an additional amount equal to the tax.\n\nAn example provided in Rule 3 of the FAST-DS 2026 Rules assumes undisclosed foreign income of ₹70 lakh earned in 2022, with ₹60 lakh used to purchase foreign property. The property's value as of March 31, 2026, is ₹80 lakh. The computation subtracts the amount invested in the foreign asset from the undisclosed foreign income, avoiding duplication.\n\nSection 131(1)(k) of the Finance Act 2026 defines \"undisclosed foreign income\" as income from a source outside India, chargeable to tax in India but not offered to tax under the Income-tax Act 1961. This definition links undisclosed foreign income to its chargeability under the Income-tax Act. The FAST-DS 2026 Rules and CBDT FAQs do not expressly state that undisclosed foreign income should be computed according to the Income-tax Act provisions, but this interpretation may be reasonable.\n\nOnce the undisclosed foreign income is determined, a further question arises if the income was earned in a foreign currency. At what exchange rate and on what date should it be converted to Indian rupees for FAST-DS 2026 purposes? Rule 115 of the Income-tax Rules 1962 provides this statutory framework, requiring foreign currency income to be converted at the telegraphic transfer buying rate on the specified date. The specified dates for various categories of foreign income are detailed in Rule 115.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}