Foreign Assets of Small Taxpayers — Disclosure Scheme

As global employment, foreign investments, and overseas education opportunities continue to rise, many Indian taxpayers hold foreign assets or earn income abroad. To support voluntary tax compliance and simplify disclosure of such foreign assets, Budget 2026 introduced the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST- DS).

Budget 2026 announced a scheme called Foreign Assets of Small Taxpayers – Disclosure Scheme 2026 (FAST-DS)
This scheme is a one-time opportunity to eligible taxpayers to voluntarily declare foreign income or assets that were not reported or taxed earlier.
By declaring them and paying the required tax and fee, taxpayers can get protection from further tax demands, penalties, and legal prosecution under the Black Money Act, 2015.

Foreign Assets of Small Taxpayers — Disclosure Scheme

This document covers

Eligible taxpayers who can opt for this scheme
Types of income or assets that can be disclosed under the scheme
Monetary Limits to be eligible under this scheme
Tax payable on such undisclosed foreign assets or income
Process of availing this opportunity
Exclusions to this scheme
Last date for making a declaration under the Scheme
Key Benefits of FAST-DS

1. Eligible taxpayers who can opt for this scheme

Employees of MNC companies who are receiving RSU, ESOP, ESPP etc. from employers but did not report them in their income tax returns
Former students who studied abroad still have unused or low-balance foreign bank accounts.
Returning non-residents with undisclosed foreign savings or insurance policies
Government or mission staff working overseas who may have foreign financial assets

2. Types of income or assets that can be disclosed under the scheme

The following types of income or assets that can be disclosed under the scheme

Undisclosed foreign income (Ex: Foreign dividend)
undisclosed assets located outside India (Ex: RSU, bank account etc)
Foreign assets purchased from taxed income or during NRI status but not reported in ITR

3. Monetary Limits to be eligible under this scheme

Undisclosed foreign income / undisclosed foreign assets — Up to Rs 1 crore as on 31st March 2026
Foreign assets purchased from taxed income or during NRI status — Up to Rs 5 crore as on 31st March 2026

4. Tax payable on such undisclosed foreign assets or income

Undisclosed foreign income / undisclosed foreign assets — The taxpayer is required to pay 60% (30% tax +30% penalty) of the value of undisclosed foreign asset or income as on 31st March 2026
Foreign assets purchased from taxed income or during NRI status — The taxpayer is required to pay a flat fee of Rs 1,00,000

NOTE

If the same foreign asset was not reported for multiple years, the ₹1 lakh fee is charged only once, for the first year in which it was not disclosed. After that, the asset is treated as disclosed for later years.

However, if different foreign assets were purchased in different years and not reported, then the ₹1 lakh fee will apply separately for each asset for the first year it was not disclosed.

5. Process of availing this opportunity

The taxpayer needs to file a declaration electronically in prescribed form within the period notified by Central Government
The Income Tax authority will communicate the amount payable by an order within 1 month from the end of the month in which such declaration is filed.
Tax Payment: The taxpayer is required to pay the amount within 2 months from the end of the month in which the order was received.
Extension of time: A further extension of two months is permitted, and no extension beyond this period is allowed. However, interest @ 1% per month will be levied for these 2 months.
After payment, an order certifying payment under the Scheme shall be issued electronically.

6. Exclusions to this scheme

This scheme does not apply to

Cases involving proceeds of crime under PMLA (income or assets representing proceeds of crime under the Prevention of Money Laundering Act, 2002)
Cases already completed under the Black Money Act

7. Last date for making a declaration under the Scheme

The last date for making a declaration under this scheme will be notified by Central Government in coming days. This scheme will come into force as notified by Central Government in the Official Gazette.