The government has opened a limited-time window allowing eligible small taxpayers to disclose certain foreign assets and income that were not reported earlier, giving them an opportunity to bring their overseas financial holdings into compliance.
The Foreign Assets of Small Taxpayers–Disclosure Scheme, 2026, commonly referred to as FAST-DS, came into effect on August 16, 2026. Taxpayers can submit declarations under the scheme until December 31, 2026. The scheme was announced in the Union Budget 2026 as a one-time measure aimed particularly at taxpayers who may have missed reporting certain overseas assets or income because of compliance gaps.
Editorial Insight
Key Highlights
Important points readers should notice.
FAST-DS came into effect on August 16, 2026.
The declaration window remains open until December 31, 2026. One category covers undisclosed foreign assets/income up to ₹1 crore.
A separate category covers certain foreign assets valued up to ₹5 crore. The ₹5 crore category applies to specific assets acquired from disclosed income or during a non-resident period.
The ₹1 crore category carries a combined tax and additional amount equivalent to 60% of the relevant value.
The ₹5 crore category carries a prescribed ₹1 lakh fee, subject to conditions.
The scheme is designed as a one-time compliance opportunity.
There are two broad categories under the scheme.For taxpayers who have undisclosed foreign assets or undisclosed foreign income, the aggregate value must not exceed ₹1 crore as on March 31, 2026. In such cases, the prescribed payment includes 30 percent tax along with an additional amount equal to the tax, effectively taking the total levy to 60 percent of the relevant value.
The second category covers certain foreign assets that were acquired from income that had already been disclosed or taxed, or assets acquired during a period when the taxpayer was a non-resident but were subsequently not reported in the relevant tax return.For this category, the foreign asset can have a value of up to ₹5 crore as on March 31, 2026, with a prescribed ₹1 lakh fee for regularisation, subject to the conditions of the scheme.
The government has positioned the measure as a compliance opportunity rather than a permanent relaxation. The declaration process is to be completed electronically, and the window closes at the end of December.
Editorial Analysis
Why This Matters
For taxpayers with overseas holdings, this is a time-bound opportunity to resolve old reporting gaps under a specific statutory framework rather than allowing them to remain unresolved.
The scheme can cover specified overseas holdings such as foreign bank accounts, property, securities and other eligible assets, depending on the category and conditions applicable to the taxpayer.
The broader objective is to encourage taxpayers to voluntarily correct earlier reporting omissions and bring eligible overseas holdings into the formal tax system.
For taxpayers who qualify, the window could be significant because it provides a defined route to regularise past omissions instead of leaving them unresolved under the normal foreign-asset disclosure framework.
