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FAST-DS 2026: Declare Undisclosed Foreign Assets Up to ₹5 Crore by Paying ₹1 Lakh, Check Rules
FAST-DS 2026 Income Tax Update: Have you forgotten to report a foreign bank account, overseas property or international investment in your Income Tax Return (ITR)? The Income Tax Department has introduced a special opportunity for eligible taxpayers to disclose previously unreported foreign assets and income.
Under the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, qualifying individuals can regularise specified foreign assets worth up to ₹5 crore by paying a fixed fee of ₹1 lakh, subject to eligibility requirements.
However, this benefit is not available for every undisclosed foreign asset. The government has established separate categories with different financial limits and payment requirements.
The scheme offers a limited opportunity to correct certain historical reporting omissions and obtain relief under the applicable provisions of the Black Money Act, 2015.
What Is FAST-DS 2026?
FAST-DS 2026 is a one-time voluntary disclosure programme introduced under the Finance Act, 2026.
It allows eligible taxpayers to declare certain foreign assets or income that were not properly disclosed or taxed in earlier income tax filings.
The initiative is particularly relevant to individuals who previously worked abroad, owned foreign investments or acquired overseas property but failed to report the relevant information after becoming Indian tax residents.
The scheme came into effect on August 16, 2026, and the declaration window is scheduled to close on December 31, 2026.
Who Can Pay ₹1 Lakh to Declare Foreign Assets Worth Up to ₹5 Crore?
One of the most significant provisions of FAST-DS 2026 is the fixed ₹1 lakh payment option.
This benefit applies to specified foreign assets where the underlying income was already offered to tax in India or where the assets were acquired from foreign income while the individual was a non-resident.
For example, someone who purchased property abroad while working overseas and subsequently became an Indian resident may qualify if the asset was not reported in the relevant foreign asset schedule.
Similarly, a taxpayer who purchased overseas investments using income already declared for Indian taxation may be eligible if the foreign asset itself was omitted from the ITR.
The aggregate value of qualifying foreign assets must not exceed ₹5 crore.
This is an important distinction: the ₹1 lakh fee does not apply to all previously undisclosed foreign income or assets.
FAST-DS 2026: Two Categories and Payment Rules
The scheme provides two different disclosure routes.
| Category | Maximum Aggregate Value | Amount Payable |
|---|---|---|
| Undisclosed foreign assets or income covered by the first category | ₹1 crore | 30% tax plus an equal amount, effectively 60% |
| Eligible foreign assets acquired from previously taxed income or qualifying non-resident income | ₹5 crore | Fixed fee of ₹1 lakh |
For example, if an eligible taxpayer declares ₹50 lakh of undisclosed foreign income under the first category, the applicable payment would generally be ₹30 lakh, representing 60% of the declared amount.
In contrast, a qualifying foreign asset worth ₹3 crore under the second category may be disclosed by paying ₹1 lakh, provided all other conditions are satisfied.
The limits are based on aggregate values, not separate limits for each asset.
Which Foreign Assets Can Be Declared?
Depending on the applicable category and eligibility rules, the scheme may cover foreign bank accounts, overseas residential or commercial properties, foreign shares, securities, mutual fund investments and other qualifying assets.
Certain previously undisclosed foreign income may also fall within the scheme.
However, ownership of a foreign asset does not automatically make a taxpayer eligible.
The source of funds, residential status during acquisition, reporting history and applicable valuation requirements must be examined.
How to Apply for FAST-DS 2026 Online
Eligible taxpayers must submit the prescribed declaration electronically.
The general process involves:
- Visit the official Income Tax e-Filing Portal.
- Sign in using the registered taxpayer credentials.
- Navigate to the income tax forms section and locate the foreign asset disclosure scheme.
- Complete the prescribed Form 1 declaration with details of the foreign assets or income.
- Provide supporting documents and valuation information wherever required.
- Review the tax authority's order specifying the payable amount.
- Make the required payment using the prescribed procedure and submit payment details.
The Income Tax Department has prescribed Challan ITNS 289 for payments under the scheme.
What Is the Deadline for FAST-DS 2026?
Last date for filing a declaration
31 December 2026
As specified under the notified disclosure scheme rules.
Taxpayers considering this facility should examine their foreign asset records well before the deadline.
The prescribed valuation date for foreign assets is March 31, 2026.
After a declaration is filed, the tax authority determines the amount payable. The taxpayer generally receives two months from the end of the month in which the relevant order is received to make payment.
A limited additional payment period may be available with applicable interest.
What Happens After Successful Disclosure?
A taxpayer who submits a valid declaration and completes the prescribed payment may receive protection from further tax, penalties and prosecution under the Black Money Act in respect of the assets or income covered by that declaration.
However, this protection is subject to statutory conditions and exclusions.
The scheme is not an unconditional amnesty. Certain cases involving completed proceedings or specified unlawful activities may be excluded.
Taxpayers should carefully review their eligibility before filing a declaration.
Why Is Foreign Asset Disclosure Important in ITR?
Indian tax residents who meet the relevant reporting requirements may need to disclose foreign assets and financial interests in the appropriate schedules of their income tax returns.
These disclosures can apply even where an asset does not generate current income.
Failure to report relevant foreign holdings can create compliance risks under Indian tax laws.
FAST-DS 2026 provides eligible taxpayers with a time-bound mechanism to address certain past omissions.
Anyone with foreign investments, overseas property or historical foreign income should review their tax residency and disclosure obligations with a qualified tax professional.
Final Update
FAST-DS 2026 offers eligible taxpayers an opportunity to correct certain previously unreported foreign asset and income disclosures.
The most notable benefit is the ₹1 lakh fixed fee for qualifying foreign assets with an aggregate value of up to ₹5 crore. Other undisclosed foreign income or assets may fall under the separate category involving an effective payment of 60%.
The declaration deadline is December 31, 2026. Taxpayers should verify their eligibility, supporting documents and valuation requirements before applying.
The official Income Tax e-Filing Portal provides the relevant forms and procedural guidance for completing the disclosure process.
