India Launches FAST-DS Voluntary Disclosure Scheme for Foreign Assets

The Income Tax Department has launched the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), effective from August 16, 2026. This voluntary initiative provides a window until December 31, 2026, for eligible individuals to declare previously undisclosed foreign assets or income. Participants receive immunity from further penalties and prosecution under the Black Money Act, provided they comply with the stipulated tax and fee requirements defined in the program.

Targeted at students, technology professionals, and non-resident Indians, the scheme addresses assets or income not previously reported in tax returns. Taxpayers must pay a 30% tax on the declared asset value, plus an equivalent amount in penalties, totaling a 60% levy. Declarations are limited to assets with an aggregate value under ₹1 crore, or assets already taxed but not reported in relevant schedules, with a higher threshold of ₹5 crore and a ₹1 lakh administrative fee.

Announced during the 2026-27 Union Budget by Finance Minister Nirmala Sitharaman, the scheme aims to regularize foreign holdings and enhance tax compliance before the initiation of enforcement actions. The fair market value for these assets will be calculated as of March 31, 2026. This measure reflects the government's ongoing effort to broaden the tax base and streamline foreign asset reporting, providing a structured pathway for small taxpayers to clear past disclosure gaps.