Current Context: The Central Board of Direct Taxes (CBDT) has operationalised the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026 from 16 August 2026. It provides eligible taxpayers a one-time opportunity to voluntarily disclose certain unreported foreign assets or foreign income and regularise them by paying the prescribed tax or fee.
- Full Form: FAST-DS stands for Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026.
- Introduced Under: The scheme forms part of the Finance Act, 2026 and operates in relation to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- Last Date: Eligible taxpayers can file declarations up to 31 December 2026. No declaration can be made after this date.
- Purpose: It aims to help small taxpayers correct past or inadvertent non-disclosure of foreign income or assets and improve voluntary tax compliance.
- Assets Covered: Foreign bank accounts, shares and securities, ESOPs/RSUs, foreign property, insurance policies and other eligible overseas assets or income may be covered.
- Who Can Benefit: It is particularly useful for people such as former overseas students with dormant bank accounts, employees holding foreign ESOPs/RSUs, returning NRIs and individuals who previously worked abroad but failed to report eligible foreign assets.
- Two Broad Categories: For certain undisclosed foreign assets/income, the eligible limit is up to ₹1 crore. Certain foreign assets acquired from already-taxed income or while the person was non-resident can qualify up to ₹5 crore, subject to scheme conditions.
- Benefit: A valid declaration, along with payment of the prescribed tax or fee, can provide specified immunity from further tax, penalty and prosecution under the Black Money Act for matters covered by the declaration.
Question
Q1. Under FAST-DS 2026, what is the maximum aggregate value of foreign assets eligible for the ₹1 lakh flat-fee reporting-lapse category?a) ₹1 crore
b) ₹2 crore
c) ₹5 crore
d) ₹10 crore
Answer: c) For certain undisclosed foreign assets/income, the eligible limit is up to ₹1 crore. Certain foreign assets acquired from already-taxed income or while the person was non-resident can qualify up to ₹5 crore, subject to scheme conditions.
