India has introduced the Foreign Assets of Small Taxpayers Disclosure Scheme known as FAST DS. This scheme gives individuals a chance to declare undisclosed foreign assets and income. It started on August 16 and will remain open until December 31 2026. The Central Board of Direct Taxes is managing this process.
Taxpayers can disclose overseas bank accounts property jewellery bullion artistic works unquoted shares and other income. For undisclosed assets or income up to ₹1 crore tax of 30% and penalty of 30% will apply. For foreign assets up to ₹5 crore a flat fee of ₹1 lakh is charged. Valuation will be based on March 31 2026.
Excluded from the scheme are assets linked to crime under the Prevention of Money Laundering Act and those already assessed under the Black Money Act 2015. Payment must be made within two months of receiving the order after electronic verification.
The scheme provides immunity from further tax penalty or prosecution once disclosure is settled. Experts say this is a rare chance for small taxpayers students professionals and NRIs to regularise foreign holdings without facing harsher penalties later. It encourages transparency and compliance while offering relief to those with limited undisclosed assets abroad.
