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The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers–Disclosure Scheme (FAST-DS) 2026, a one-time voluntary disclosure mechanism announced in the Union Budget 2026–27 under the Finance Act, 2026.

What is FAST-DS 2026?

FAST-DS enables eligible taxpayers to voluntarily disclose certain undisclosed foreign assets or foreign income by paying the prescribed tax/fee. The Scheme came into force on 16 August 2026 and declarations can be filed up to 31 December 2026. The valuation date for assets is 31 March 2026.

An eligible person is generally one who was resident in India in the relevant previous year. A person currently non-resident or RNOR may also qualify if they were resident in India in the relevant year of foreign income or acquisition of the foreign asset.

Two Categories under FAST-DS

Category I – Undisclosed Foreign Asset/Income:Covers foreign assets or income that were not previously offered to tax, where the aggregate value does not exceed ?1 crore.

• Tax: 30%
• Additional amount: 100% of the tax
• Effective payment: 60%
• Example: ?80 lakh declared → ?48 lakh payable.

Category II – Undeclared Foreign Asset:Covers foreign assets that were already offered to tax or acquired when the assessee was a non-resident, but were not disclosed in the relevant ITR schedule.

• Aggregate asset value: up to ?5 crore
• Fee: ?1 lakh

A declaration can be made where the taxpayer failed to file a return, omitted the foreign asset/income from a filed return, or the income/asset escaped assessment.

Valuation & Benefits

Foreign assets are generally valued at the higher of their cost of acquisition or open-market value as on 31 March 2026, with conversion into Indian rupees under prescribed foreign-exchange rules. Specific valuation methods apply to jewellery, securities, unquoted shares, immovable property, foreign bank accounts and foreign partnerships/LLPs.

A valid declaration and payment provide immunity from further tax, penalty and prosecution under the Black Money Act, 2015 for the declared asset/income. However, the declarant cannot subsequently seek rectification/revision or set-off/relief relating to the declared asset/income or amount paid.

Exclusions

FAST-DS does not cover:

• Proceeds of crime where proceedings are initiated/pending under the Prevention of Money-Laundering Act, 2002.
• Assets/income relating to assessment years for which proceedings have already been completed under the Black Money Act, 2015.