India on Sunday opened a one-time tax amnesty scheme allowing small taxpayers to disclose certain undisclosed foreign assets and income, with declarations under the programme open until Dec. 31, 2026.
The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the 2026-27 Budget, is aimed at bringing eligible overseas assets and income into the tax net while offering relief from further penalties and prosecution, the Income Tax Department said.
According to Reuters, the scheme covers taxpayers with undisclosed foreign income of up to Rs 1 crore. Eligible declarations will attract 30% tax along with an additional amount equal to the tax, taking the effective levy to 60%.
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A separate category covers foreign assets worth up to Rs 5 crore that were already offered to tax or acquired when the taxpayer was a non-resident but were not disclosed in the relevant tax-return schedule. Such taxpayers can make a declaration by paying a fee of Rs 1 lakh, Reuters reported, citing government details.
The fair market value of the assets will be determined as of March 31, 2026.
The scheme was announced by Finance Minister Nirmala Sitharaman in the Feb. 1 Budget and is targeted at small taxpayers, including students, young professionals, technology employees and non-resident Indians who may have failed to report eligible overseas holdings.
PTI reported on Saturday that the Central Board of Direct Taxes (CBDT) had notified the scheme, with online declarations scheduled to open from Aug. 16.
The CBDT said FAST-DS “enables eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee”.
Under the scheme, taxpayers making valid declarations will receive immunity from further tax or penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in respect of the disclosed assets or income.
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The CBDT also said the declared income or the amount invested in the disclosed asset would not be included in the taxpayer’s total income under the Income-tax Act, 1961 or the Black Money Act.
PTI cited a CBDT example in which an undisclosed foreign bank account valued at Rs 60 lakh, along with undisclosed foreign income of Rs 20 lakh, would result in a total tax payable of Rs 48 lakh under the scheme.
The government has set Dec. 31, 2026 as the deadline for eligible taxpayers to make declarations under FAST-DS.
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