What Is FAST-DS?

FAST-DS — the Foreign Assets of Small Taxpayers-Disclosure Scheme — is a one-time voluntary disclosure window that lets eligible taxpayers declare certain undisclosed foreign assets or foreign income by paying a specified tax or fee, in exchange for immunity from further tax, penalty, and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The scheme was first announced by Finance Minister Nirmala Sitharaman in the Union Budget 2026-27 speech on February 1, 2026, and sits within Chapter IV (Sections 130 to 144) of the Finance Act, 2026. The CBDT formally notified the scheme, and online filing of declarations opened on August 16, 2026, with a filing deadline of December 31, 2026.

Who Is FAST-DS Actually For?

This isn't a broad amnesty aimed at large-scale offshore tax evasion — it's specifically positioned for smaller, often inadvertent, non-disclosure cases. The government has flagged the intended audience explicitly: students, young professionals, technology sector employees, and relocated NRIs who may have failed to report certain foreign holdings, often without deliberate intent.

Common real-world scenarios this is designed to catch:

• Tech employees with unreported ESOPs or RSUs from foreign employers, who didn't disclose these in the foreign-asset schedule of their ITR
• People who studied overseas and left behind a dormant or low-balance foreign bank account after returning to India, without reporting it
• Taxpayers who acquired a foreign asset using income already taxed in India, or acquired it while they were a non-resident, but simply never reported it once they became a resident filer

Who Is Eligible?

An assessee is eligible if they are resident in India in the relevant previous year. Importantly, the scheme also extends to those who are currently non-resident or RNOR (Resident but Not Ordinarily Resident), provided they were resident in India either in the year the undisclosed income relates to, or in the year the undisclosed asset was acquired.

The Two Disclosure Tracks

This is the part worth understanding carefully, since FAST-DS treats never-taxed income very differently from already-taxed-but-unreported assets.

Track 1: Undisclosed Foreign Income/Assets — up to ₹1 Crore

This track applies where the underlying income or asset value was never taxed in India at all. Here, the aggregate value of undisclosed foreign assets (as on March 31, 2026), combined with any undisclosed foreign income, must not exceed ₹1 crore.

Tax payable: 30% flat tax on the value, plus an additional amount equal to 100% of that tax — working out to an effective levy of 60% of the disclosed value.

Example: If an eligible undisclosed foreign asset is valued at ₹50 lakh, the tax component is ₹15 lakh, and the additional amount is another ₹15 lakh — a total outgo of ₹30 lakh, or 60% of the asset's value.

Track 2: Previously-Taxed but Unreported Assets — up to ₹5 Crore

This track is meant for a genuinely different situation: assets where the source of funds was already taxed in India, or the asset was acquired while the taxpayer was a non-resident, but it simply wasn't reported in the correct schedule of the ITR once the person became a resident. Since the underlying money was never actually "black" or untaxed, the government treats this far more leniently.

Value ceiling: Up to ₹5 crore, based on fair market value as on March 31, 2026.

Fee payable: A flat fee of ₹1 lakh, regardless of where the asset's value falls within the ₹5 crore ceiling — a reporting-compliance fee rather than a tax on wealth that was never taxed.

Quick Comparison

	Track 1 (Undisclosed Income/Assets)	Track 2 (Previously-Taxed, Unreported)
Value Ceiling	₹1 crore (assets + income combined)	₹5 crore
Cost	30% tax + 100% additional amount = 60% effective	Flat ₹1 lakh fee
Nature of Funds	Genuinely untaxed income/assets	Already taxed in India, or acquired as a non-resident
Valuation Date	March 31, 2026	March 31, 2026

What Happens If You Don't Use FAST-DS?

It's worth understanding the stakes of staying non-compliant, since the underlying Black Money Act penalties this scheme offers immunity from are considerably harsher:

• A penalty of ₹10 lakh per asset, per year of non-disclosure, applies even where you hold the asset merely as a beneficial owner.
• Outside the scheme, a flat 30% tax plus a penalty equal to three times that tax (90% of value) can apply — a total effective outgo of 120% of the asset's value, with no deductions or set-offs permitted.
• Criminal prosecution, including potential imprisonment, remains a possibility under the Black Money Act — though prosecution generally does not apply where aggregate undisclosed foreign movable assets (excluding immovable property) total less than ₹20 lakh.

Set against that backdrop, FAST-DS's 60% (Track 1) or flat ₹1 lakh (Track 2) cost looks considerably more manageable — which is precisely the incentive structure the scheme is built around.

Key Dates to Remember

Milestone	Date
Announced in Union Budget	February 1, 2026
Valuation date for assets	March 31, 2026
Scheme notified / online filing opens	August 16, 2026
Last date to file declaration	December 31, 2026

What You Get in Return for Disclosing

Taxpayers who file a valid declaration under FAST-DS receive:

• Immunity from further tax, penalty, and prosecution under the Black Money Act for the specific income or assets disclosed
• Confirmation that the declared income (or the amount invested in the disclosed asset) will not be added to the taxpayer's total income under the Income-tax Act for the relevant year

Frequently Asked Questions (FAQs)

Q1. What is the last date to file a FAST-DS declaration?

December 31, 2026. Online filing opened on August 16, 2026.

Q2. Who is FAST-DS meant for?

It's aimed at small taxpayers with inadvertent non-disclosures — students, young professionals, tech employees with unreported ESOPs/RSUs, and relocated NRIs — rather than large-scale offshore tax evasion cases.

Q3. What's the difference between the ₹1 crore and ₹5 crore limits?

The ₹1 crore limit applies to genuinely undisclosed foreign income/assets that were never taxed, taxed at an effective 60%. The ₹5 crore limit applies to assets acquired from already-taxed income or during a period of non-residency, but simply not reported — these attract only a flat ₹1 lakh fee.

Q4. Can a current NRI use this scheme?

Yes, if they were resident in India either during the year the undisclosed income relates to, or the year the undisclosed asset was acquired.

Q5. What date is used to value the foreign assets being disclosed?

March 31, 2026 — the fair market value of the asset as of this date is used for the disclosure, regardless of when you actually file.

Q6. What happens if I don't disclose and am later found non-compliant?

Penalties outside the scheme are significantly steeper — up to ₹10 lakh per asset per year of non-disclosure, plus a potential 120% effective tax outgo (30% tax + 90% penalty), and possible criminal prosecution depending on asset value and type.

Disclaimer: This article is for informational and educational purposes only and does not constitute tax or legal advice. FAST-DS involves complex eligibility criteria and significant financial and legal consequences depending on individual circumstances. Given the seriousness of foreign asset non-disclosure under the Black Money Act, please consult a qualified chartered accountant or tax advisor before making any declaration or filing decision under this scheme.