FAST-DS opens today: last chance for small taxpayers to declare undisclosed foreign assets

The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), announced in the 2026-27 Budget, came into force on August 16, 2026, giving eligible taxpayers a one-time window to voluntarily declare undisclosed foreign assets and income. Online declarations remain open until December 31, 2026, per the Central Board of Direct Taxes (CBDT), as reported by Business Standard and ANI.

Who it targets

CBDT has flagged the scheme as aimed particularly at students, young professionals, tech employees, and relocated NRIs who may have foreign bank accounts, ESOPs, or overseas assets they failed to report — often unknowingly — rather than deliberate tax evaders, per BusinessToday. It covers residents, and in some cases non-residents/RNORs who were resident in the year the asset was acquired or the income arose.

The two tracks

Category	Covers	Ceiling	Cost to regularise
Undisclosed assets/income	Foreign assets or income never offered to tax	Aggregate value up to ₹1 crore (valued as of March 31, 2026)	30% tax + an equal additional amount = 60% effective levy
Already-taxed but unreported	Assets bought with already-taxed income but never disclosed in the return	Up to ₹5 crore	Flat fee of ₹1 lakh

Source: ETV Bharat, Gujarat Samachar.

Why it matters

Under the existing Black Money (Undisclosed Foreign Income and Assets) Act, 2015, merely failing to report a foreign account or asset — even one funded entirely by already-taxed money — can attract a flat ₹10 lakh annual penalty, regardless of the asset’s actual value. Declaring under the ₹5-crore track for a one-time ₹1 lakh fee extinguishes that recurring exposure. Declarants also get immunity from tax, penalty and prosecution under the Black Money Act for the disclosed item.

Payment timeline

Taxpayers generally get two months from declaration to pay, with a further two months available if they pay simple interest of 1% per month on the delay, per ETV Bharat.

What to do now

• If you have a foreign bank account, brokerage account, ESOPs from a foreign employer, or property abroad that wasn’t reported in Schedule FA of your ITR, check which of the two categories applies to you before December 31.
• Assets funded by already-disclosed, taxed income are far cheaper to regularise (₹1 lakh flat fee) than assets bought with unreported income (60% effective tax).
• This is separate from the regular Schedule FA disclosure required every year in your ITR going forward — FAST-DS only cleans up past gaps.
• Consult a tax professional before filing, since eligibility depends on residency status in the year the asset was acquired or income arose.

Source: Business Standard, BusinessToday, ETV Bharat, August 15–16, 2026.