The Indian government has notified the FAST-DS scheme, offering a window until December 31 to declare undisclosed foreign assets up to ₹5 crore with immunity from prosecution.
Key Takeaways
- The FAST-DS scheme allows disclosure of foreign assets until December 31.
- Assets up to ₹5 crore can be declared under specific categories.
- Compliance provides immunity from prosecution under the Black Money Act, 2015.
- Valuation of assets must be computed as of March 31, 2026.
In a significant move to regularize undisclosed foreign holdings, the Indian government has officially notified the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS). Following the Budget announcement, the Central Board of Direct Taxes (CBDT) has operationalized the rules effective from August 16, 2026. This scheme provides a strategic window for taxpayers to declare undisclosed foreign bank accounts, immovable property, jewellery, shares, or securities by paying a specified tax or fee.
Understanding the Two Disclosure Categories
The scheme is structured to cater to different levels of undisclosed wealth, ensuring that small taxpayers are not overburdened:
- Category 1: Applies to undisclosed foreign income or assets valued up to ₹1 crore. Taxpayers must pay 30% of the fair market value as tax and an additional 30% as an income tax in lieu of penalty.
- Category 2: Applies to assets located outside India up to ₹5 crore, which were acquired from income earned while the individual was a non-resident but not declared upon becoming a resident. For this category, a flat fee of ₹1 lakh is required for immunity.
Important Note
The valuation date for all assets under this scheme is March 31, 2026.
Why This Matters
BozokMedia analysis shows that this scheme is a calculated attempt by the government to broaden the tax base without initiating aggressive litigation against small-scale offenders. By providing a 'clean slate' for students, relocated NRIs, and young professionals, the government is minimizing the administrative burden of long-drawn legal battles under the Black Money Act.
The FAST-DS scheme serves as a vital compliance bridge, allowing taxpayers to rectify unintentional omissions without the fear of criminal prosecution.
| Feature | Category 1 (Up to ₹1 Cr) | Category 2 (Up to ₹5 Cr) |
|---|---|---|
| Asset Type | Undisclosed Foreign Income/Asset | Non-resident acquired assets |
| Payment Requirement | 30% Tax + 30% Penalty-in-lieu | Flat ₹1 Lakh Fee |
| Legal Immunity | Immunity from Prosecution | Immunity from Penalty & Prosecution |
Frequently Asked Questions
1. Will declared income be taxed again in the future?
No, once a valid declaration is made under FAST-DS, the amount will not be included in the taxpayer's total income under the Income-tax Act or Black Money Act.
2. What is the deadline for this scheme?
The window for making declarations under this scheme closes on December 31.
