The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS) Rules, 2026, and released a detailed FAQ document to help taxpayers understand the new one-time disclosure window.
Announcing the notification, the Income Tax India handle said on X that the FAQs “provide clear and concise explanations” of the scheme for the benefit of taxpayers and other stakeholders.
What The Scheme Covers
According to the FAQs, FAST-DS is a voluntary disclosure mechanism under Chapter IV of the Finance Act, 2026, allowing eligible taxpayers to declare undisclosed foreign assets or foreign income, or foreign assets that were not reported in their tax return, on payment of a specified tax or fee.
The scheme comes into force on August 16, 2026, with declarations open till December 31, 2026, and asset values to be computed as on a valuation date of March 31, 2026.
Eligibility And Monetary Limits
Both resident and certain non-resident or RNOR taxpayers can file a declaration, provided they meet specified residency conditions for the year the asset was acquired or income earned.
Two categories of disclosure are permitted: undisclosed foreign assets or income not exceeding Rs 1 crore in aggregate, and foreign assets already reflected in tax records but not properly declared in return schedules, capped at Rs 5 crore.
Assets valued above Rs 5 crore are not eligible under the scheme.
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Tax Payable And Process
For undisclosed assets or income up to Rs 1 crore, the payable amount works out to 30% tax plus an equal additional amount, effectively a 60 per cent levy.
For the second category, a flat fee of Rs 1 lakh applies.
Declarations must be filed electronically in Form 1, following which the tax department will communicate the payable amount via Form 2, with payment required within two months, extendable by a further two months with interest.
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Immunity On Valid Declaration
The FAQs clarify that a valid declaration and payment will grant immunity from further tax, penalty and prosecution under the Black Money Act, 2015, for the disclosed asset or income.
However, the scheme will not apply to assets linked to proceeds of crime under the Prevention of Money-laundering Act, or to years where Black Money Act assessments have already been completed.
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