One-Time Scheme Targets Undisclosed Foreign Assets
Key Highlights
- The government has opened a one-time voluntary disclosure scheme for undisclosed foreign assets and income.
- The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) begins on August 16, 2026.
- The disclosure window will remain open until December 31, 2026.
- The scheme covers foreign bank accounts, overseas property, jewellery, artworks, shares and securities.
- The first category covers undisclosed foreign assets held outside India as of March 31 or foreign income up to ₹1 crore.
- A second category covers foreign assets with an aggregate value of up to ₹5 crore.
- Eligible taxpayers can regularise their undisclosed overseas holdings by paying the applicable tax or fee.
- The scheme is aimed particularly at small taxpayers and certain non-resident Indians.
News Story
New Delhi, August 15: The government has opened a one-time voluntary disclosure window for taxpayers seeking to declare undisclosed foreign assets and income, giving eligible individuals an opportunity to bring their overseas holdings into compliance with India’s tax framework.
The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) will come into effect from Sunday, August 16, and remain open until December 31, 2026.
The scheme was announced in the Union Budget 2026 and the rules were notified by the Central Board of Direct Taxes (CBDT).
One-Time Foreign Asset Disclosure
Under FAST-DS, eligible taxpayers can disclose previously undeclared foreign assets and income by paying the specified tax or fee.
The scheme covers a wide range of overseas holdings, including foreign bank accounts, overseas property, jewellery, artistic works, unquoted shares and securities, as well as other undisclosed foreign income.
The government has positioned the scheme as a simple, one-time mechanism to help eligible taxpayers regularise their tax position.
Two Broad Categories
The disclosure framework broadly divides qualifying cases into two categories.
The first category covers undisclosed assets located outside India as of March 31, 2026, or foreign income not exceeding ₹1 crore.
The second category covers foreign assets with an aggregate value of up to ₹5 crore.
Taxpayers falling within the prescribed conditions can use the scheme to disclose their overseas holdings and settle the applicable tax or fee.
Window Opens August 16
The scheme will officially begin on August 16, 2026, with taxpayers having until December 31 to submit their declarations.
The limited duration of the window means eligible taxpayers will have to evaluate their foreign holdings and determine whether they meet the conditions prescribed under FAST-DS.
The government has described the initiative as a one-time opportunity rather than a continuing disclosure mechanism.
Focus On Small Taxpayers
The scheme is specifically designed to address practical tax-compliance issues faced by smaller taxpayers with undisclosed foreign assets or income.
Tax professionals have suggested that the framework could be particularly relevant for individuals with overseas financial interests, inherited assets, foreign investments or income that may not have been properly reported in India.
The scheme could also be relevant to certain students, young professionals, technology employees, relatives of non-resident Indians and other taxpayers with qualifying overseas holdings.
Foreign Assets Covered
FAST-DS covers several types of foreign assets that taxpayers may need to disclose.
These include overseas bank accounts, property, jewellery, artistic works, unquoted shares and securities and other specified foreign assets.
Foreign income that was required to be disclosed for Indian tax purposes can also fall within the scope of the scheme, subject to the prescribed conditions.
Opportunity To Regularise Holdings
The government expects the one-time window to encourage taxpayers to voluntarily come forward and disclose foreign holdings that were previously omitted from their tax records.
For qualifying taxpayers, the scheme provides a defined route to regularise their position instead of continuing with undisclosed overseas assets or income.
With the disclosure window ending on December 31, taxpayers with potentially eligible foreign holdings will need to assess their position and act within the prescribed period.
