Source: IE
Context: The Income Tax Department has notified a new voluntary disclosure scheme allowing small taxpayers to declare certain undisclosed foreign assets and income by paying an effective 60% tax. The scheme lets eligible individuals come clean without facing further penalties or prosecution.
What is FAST-DS?
A limited-period voluntary disclosure scheme allowing eligible taxpayers to declare undisclosed foreign assets, undisclosed foreign income or undeclared foreign assets by paying a prescribed tax or fee — and receive immunity from further tax, penalty and prosecution under the Black Money Act.
| Aspect | Detail |
|---|---|
| Announced in | Union Budget 2026-27 |
| Legal basis | Chapter IV of the Finance Act, 2026 |
| Notified by | Central Board of Direct Taxes (CBDT) |
| In force from | 16 August 2026 |
| Closes on | 31 December 2026 |
| Valuation date | 31 March 2026 |
| Filing | Electronically, in Form 1 |
Who Is Eligible
An assessee is eligible if he is resident in India in the relevant previous year.
A non-resident or RNOR (Resident but Not Ordinarily Resident) may also be eligible if he was resident in India:
- In the year to which the undisclosed income relates, or
- In the year in which the undisclosed asset was acquired
Situations covered:
- Failure to disclose the asset or income in a return filed before the scheme commenced
- Where such asset or income has escaped assessment within the meaning of Section 147 of the Income-tax Act, 1961
Target group: students, young professionals, technology employees and relocated non-resident Indians — cases where overseas assets went unreported because of inadvertence, lack of awareness or a change in residential status.
The Two Categories
| Category A | Category B | |
|---|---|---|
| What it covers | Undisclosed foreign asset or foreign income never offered to tax | Foreign asset already offered to tax, or acquired when the assessee was a non-resident, but not declared in the relevant ITR schedule |
| Value ceiling | ₹1 crore (as on 31 March 2026) | ₹5 crore |
| Payable | 30% tax + an additional amount equal to the tax = effective 60% | Flat fee of ₹1 lakh |
| Above the ceiling | Not eligible | Not eligible if assets exceed ₹5 crore |
