From the Knowledge Centre
FAST-DS 2026: Foreign Asset Disclosure Scheme, Limits, Last Date
The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026) is a one-time window to regularise foreign assets and foreign income that were not reported in Indian income-tax returns. Declarations in Form 1 can be filed online from 16 August 2026 to 31 December 2026. Undisclosed assets or income up to ₹1 crore attract 60% of their value (tax plus an equal additional amount), while assets up to ₹5 crore that were only left out of the return's foreign-asset schedule need a flat ₹1 lakh fee.
The scheme is contained in Chapter IV of the Finance Act, 2026 and runs fully online on the e-filing portal.
Who can file a declaration under FAST-DS 2026?
As per the Income Tax Department's FAQ, the scheme is open to:
- persons who were resident in India in the relevant previous year; and
- persons who are now non-resident or not ordinarily resident, if they were resident in India in the year to which the undisclosed income relates or the year in which the foreign asset was acquired.
A declaration can be made where no return was filed, where the asset or income was not shown in a return filed before the scheme began, or where the income has escaped assessment.
Typical cases are a foreign bank account from years spent abroad, or shares from an overseas employer's stock plan, never shown in Schedule FA.
What are the two categories and the amount payable?
| Category (Table in section 133) | What it covers | Value limit | Amount payable |
|---|---|---|---|
| Serial No. 1 | Undisclosed foreign asset or foreign income not taxed in India | Asset value plus income up to ₹1 crore in total | Tax at 30% plus an additional amount equal to the tax – 60% in effect |
| Serial No. 2 | Foreign asset acquired from income already taxed in India, or acquired while non-resident, but not shown in the return's foreign-asset schedule | Aggregate asset value up to ₹5 crore | Flat fee of ₹1,00,000 |
The department's FAQ gives this illustration for Serial No. 1: a foreign asset worth ₹60 lakh and undisclosed income of ₹20 lakh make ₹80 lakh. Tax at 30% is ₹24 lakh, the additional amount is another ₹24 lakh, and the total payable is ₹48 lakh.
If the aggregate asset value exceeds ₹5 crore, the person cannot use Serial No. 2.
Is tax payable on the foreign asset or only on the income?
It depends on the category. Under Serial No. 2, the asset was bought from income already taxed in India, or while non-resident. Only the failure to report it is regularised, so no tax is charged – just the ₹1 lakh fee. Under Serial No. 1, the source of the investment in the asset is unexplained, so the asset's value as on 31 March 2026 is itself treated as untaxed income and charged at 30% plus an equal amount. Untaxed foreign income such as interest or dividends is declared separately. Income that already forms part of an asset's value should not be counted again.
How is the foreign asset valued?
The valuation date is 31 March 2026. The general rule is the higher of the cost of acquisition and the open-market price on that date. Some specific rules:
- Listed shares: mean of the day's high and low quoted prices on the valuation date, or the nearest earlier trading day.
- Foreign bank account: the total of all deposits made since the account was opened, with adjustment for withdrawals that were redeposited.
- Currency conversion: values are reported in rupees using the RBI reference rate on the valuation date. Other currencies are converted through the US dollar.
How do you file Form 1 on the e-filing portal?
- Log in and go to e-File → Income Tax Forms → File Income Tax Forms.
- Under "Forms as per other Acts", select Form 1 of FADS 2026.
- Fill Part A (basic details) and Part B (types of assets or income). This opens the relevant annexures.
- Complete each annexure, attach the computation and valuation reports (PDF or ZIP, up to 5 MB each), and review the computed figures in Parts C and D.
- Preview the form and e-verify it through Aadhaar OTP, a digital signature certificate or EVC.
What are the deadlines after the declaration?
| Step | Form | Time limit |
|---|---|---|
| Declaration | Form 1 | 16 August 2026 to 31 December 2026 |
| Order fixing the amount payable | Form 2 | Within one month from the end of the month of declaration |
| Payment | Challan ITNS 289 | Within two months from the end of the month in which Form 2 is received |
| Late payment | Challan ITNS 289 | Further two months, with simple interest at 1% per month or part of a month |
| Intimation of payment | Form 3 | Within the payment period, with proof of payment |
| Certificate of payment | Form 4 | Within one month from the end of the month in which Form 3 is received |
If the amount is not paid within the extended period, the declaration is void and treated as never made.
What protection does a valid declaration give?
According to the FAQ, a valid declaration gives immunity from further tax, penalty and prosecution under the Black Money Act, 2015 for the declared asset or income. The declared income, or the investment in the declared asset, is not included again in total income. However, the declarant cannot seek rectification, revision or any other relief for past assessments relating to that asset or income.
Who cannot use the scheme?
The scheme does not apply to:
- assets or income that represent proceeds of crime where proceedings under the Prevention of Money-laundering Act, 2002 have been started or are pending; and
- an assessment year for which assessment under the Black Money Act, 2015 has already been completed.
Points to check before declaring
- Identify the correct category first. It decides both the value limit and whether 60% or the flat ₹1 lakh fee applies.
- From now on, report all foreign assets every year in Schedule FA of the return. The income-tax return for each year should be checked for this. For the changes under the new law, see Income-tax Act, 2025: tax year, regimes and ITR.
The information in this article reflects the law as on the date of publication and is for general guidance only.
CA. Kunal Darwani