FAST-DS 2026: The New Disclosure Scheme for Undisclosed Foreign Assets
A one-time window to voluntarily declare undisclosed foreign assets or foreign income, in exchange for immunity under the Black Money Act - here is who qualifies, what it costs, and how the process works.
The Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS) opened on 16.08.2026. It gives eligible taxpayers a one-time, limited window to come clean on undisclosed foreign assets or foreign income - and in some cases, on foreign assets that were already taxed but never reported in the ITR - before the department finds them first.
What Is FAST-DS?
FAST-DS is a voluntary disclosure scheme under Chapter IV (Sections 130 to 144) of the Finance Act, 2026, read with the Foreign Assets of Small Taxpayers - Disclosure Scheme Rules, 2026. It lets an eligible assessee declare certain undisclosed foreign assets, undisclosed foreign income, or foreign assets that were never reported in the return, and settle the matter by paying a specified tax or fee - electronically, through the office of the Principal Director General / Director General of Income-tax (Systems).
It sits alongside the Black Money Act, 2015, but works differently. Instead of penal consequences for a foreign asset that surfaces later, FAST-DS offers a defined, one-time cost to regularise it now.
Key Dates
The Scheme comes into force. Declarations can be filed from this date.
Fair market value of every asset being declared must be computed as on this date.
No declaration can be filed after this date - there is no provision to extend it.
Who Can Declare (Eligibility)
The Scheme defines a specific class of "assessee" who can use it. You qualify if you fall into either of these categories for the relevant previous year:
Eligible Assessee
- You are resident in India (per Section 6 of the Income-tax Act, 1961) for the relevant previous year, or
- You are currently a non-resident, or resident but not ordinarily resident (RNOR), but you were resident in India either in the previous year to which the undisclosed foreign income relates, or in the previous year the foreign asset was acquired
In other words, a person who has since moved abroad and become an NRI is not automatically shut out - what matters is residential status in the year the income arose or the asset was bought, not residential status today.
A declaration can further only be made on one of these grounds: you failed to furnish a return under Section 139, you failed to disclose the asset or income in a return already filed before the Scheme commenced, or the asset or income has escaped assessment under Section 147.
What Can Be Declared
FAST-DS recognises two distinct categories of declaration, each with its own monetary ceiling. Which one applies to you depends on whether the asset or income was ever offered to tax at all.
| Category | What It Covers | Monetary Threshold |
|---|---|---|
| Category 1 | An undisclosed foreign asset, or undisclosed foreign income, that was never offered to tax | Aggregate of the asset's value (as on 31.03.2026) and the undisclosed income must not exceed ₹1 crore |
| Category 2 | A foreign asset already offered to tax (or acquired while you were a non-resident), but never disclosed in the relevant Schedule of your ITR | Aggregate value of the foreign assets must not exceed ₹5 crore |
Our Foreign Income Tax Compliance article covers Schedule FA disclosure requirements in detail, if you are unsure whether an asset should already have been reported there.
What You Pay
The cost is tied to which category the declaration falls under - and the two are structured very differently.
| Category | Amount Payable |
|---|---|
| Category 1 | Tax at 30% of the declared value/income, plus an additional amount equal to that tax - an effective 60% of the declared figure |
| Category 2 | A flat fee of ₹1 lakh, provided the aggregate asset value does not exceed ₹5 crore |
- An undisclosed foreign bank account is valued at ₹60 lakh, and undisclosed foreign income of ₹20 lakh is also being declared.
- Tax at 30% works out to ₹18 lakh on the account and ₹6 lakh on the income.
- An additional amount equal to the tax - ₹18 lakh and ₹6 lakh respectively - is also payable.
- Total amount payable: ₹48 lakh.
| Item | Value / Income | Tax (30%) | Additional (100% of Tax) | Total Payable |
|---|---|---|---|---|
| Foreign bank account | ₹60,00,000 | ₹18,00,000 | ₹18,00,000 | ₹36,00,000 |
| Foreign income | ₹20,00,000 | ₹6,00,000 | ₹6,00,000 | ₹12,00,000 |
| Total | ₹80,00,000 | ₹24,00,000 | ₹24,00,000 | ₹48,00,000 |
How Assets Are Valued
Every declared asset must be valued as on 31.03.2026, and the general rule across asset classes is the same: fair market value is the higher of the cost of acquisition and the open-market price on the valuation date - ideally backed by a recognised valuer's report. Where no such valuation is carried out, the indexed cost of acquisition is deemed to be the fair market value instead.
| Asset Class | Fair Market Value Basis |
|---|---|
| Bullion, jewellery, precious stones, artistic works | Higher of cost or open-market price (recognised valuer's report); else indexed cost |
| Quoted shares / securities | Higher of cost or the average of the day's lowest and highest traded price on the valuation date (or nearest preceding trading date) |
| Unquoted equity shares | Higher of cost or a prescribed net-asset-based formula; else indexed cost |
| Unquoted shares/securities (non-equity) | Higher of cost or open-market price (valuer's report); else indexed cost |
| Immovable property outside India | Higher of cost or open-market price, per a valuer recognised in that country; else indexed cost |
| Interest in a foreign firm, AOP or LLP | Net assets of the entity apportioned by capital contribution, with the residual split per the partnership agreement or profit-sharing ratio |
| Foreign bank account | Sum of all deposits from account opening to the valuation date, net of specified exclusions |
| Any other (residuary) asset | Higher of cost/amount invested or open-market arm's-length price; else indexed cost |
Valuing a Foreign Bank Account
A foreign bank account is valued differently from other assets - it is the sum of all deposits made into it from the date it was opened up to 31.03.2026, not the closing balance. Two exclusions apply: deposits that are simply a re-deposit of an earlier withdrawal from the same account are not counted twice, and if part of the account was already declared under Chapter VI of the Black Money Act, 2015 with tax and penalty paid, only deposits made after that earlier declaration are aggregated now.
Similarly, if the proceeds of one asset - a bank account, say - were used to buy another asset, the value of the original account is reduced by the amount reinvested, so the same money is not counted under two different assets.
How to File - Form 1 to Form 4
The process runs entirely online, through four linked forms. A single Form 1 can cover multiple assets or income items - the relevant sections simply repeat as many times as needed - and supporting documents, including any valuation report, must be uploaded with it.
Filed electronically, any time between 16.08.2026 and 31.12.2026, with supporting documents and valuation reports.
The income-tax authority issues an order stating the amount payable, within one month from the end of the month of declaration.
Due within two months from the end of the month Form 2 is received - extendable by up to two further months with 1% simple interest per month of delay.
Payment proof (and interest, if any) is reported electronically within the period allowed for payment.
Once Form 3 is verified against the Form 2 order, a payment certificate is issued within one month from the end of that month.
Maximum extension from the end of the month Form 2 was passed. Miss this, and the Scheme benefit is lost for that declaration.
What You Get - Benefits and Immunities
On a Valid Declaration and Payment
- Immunity from further tax or penalty, and from prosecution, under the Black Money Act, 2015, for the income or asset declared
- The declared income or asset value is excluded from total income under both the Income-tax Act, 1961 and the Black Money Act, 2015
- Where assessment proceedings are already pending for the declared item, the Assessing Officer must take the declaration into account while finalising that assessment
The trade-off: once declared and paid for, you cannot separately seek rectification or revision of any assessment already made in respect of that income or asset, nor claim any set-off or relief for it in a pending appeal or reference.
Where the Scheme Does Not Apply
Excluded Situations
- Any income or asset that directly or indirectly represents proceeds of crime, where proceedings under the Prevention of Money-laundering Act, 2002 have been initiated or are pending
- Any income or asset relating to an assessment year for which assessment under the Black Money Act, 2015 has already been completed
Frequently Asked Questions
No, it is entirely voluntary. It is a one-time opportunity available only until 31.12.2026, after which no fresh declaration can be filed under this Scheme.
Yes, provided you were resident in India either in the year the undisclosed income relates to, or in the year the asset was acquired. Current non-resident or RNOR status does not by itself disqualify you.
No. Only deposits made since your earlier Black Money Act declaration are aggregated for FAST-DS purposes, so long as tax and penalty were paid on the value already disclosed.
No. Any income or asset that represents proceeds of crime under the Prevention of Money-laundering Act, 2002, where proceedings have been initiated or are pending, is excluded from the Scheme entirely.
You get a further period of up to two months, with simple interest at 1% per month or part-month of delay. Beyond a total of four months from the end of the month Form 2 was passed, the Scheme benefit is lost for that declaration.
For how foreign income, RSUs, ESOPs and Schedule FA disclosures generally work, see our Foreign Income Tax Compliance guide. If you are also filing your regular return this season, our ITR Filing Essentials article covers due dates and documentation. For other common questions on disclosures and TDS, see our Income Tax FAQs.