India Launches Foreign Assets Disclosure Scheme for Small Taxpayers

The Central Board of Direct Taxes launched the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) on August 16, 2026. The program provides a one-time window for Indian residents, non-residents, and resident but not ordinarily resident taxpayers to voluntarily declare undisclosed foreign assets and income to receive immunity from penalties and prosecution under the Black Money Act, 2015.

The scheme establishes two eligibility categories based on the nature and value of the assets. Taxpayers with undisclosed assets or income up to 1 crore rupees that were never offered to tax must pay a total of 60 percent of the declared value, consisting of a 30 percent tax and an equal penalty. A second category applies to assets up to 5 crore rupees that were acquired during non-residence or from already-taxed income; these require a flat fee of 1 lakh rupees or, in some cases, no fee.

Eligible participants must file electronic declarations using Form 1 by December 31, 2026, with valuations based on fair market value as of March 31, 2026. Once the payable amount is determined in Form 2, taxpayers have two months to pay without interest, followed by an additional two-month window at 1 percent monthly interest. The scheme specifically excludes any assets linked to proceeds of crime under anti-money laundering laws.