FAST-DS 2026: foreign assets disclosure scheme, last date 31 December and what it costs
One-time scheme for small taxpayers to declare foreign assets. Last date 31 December 2026. Pay 60% for undisclosed assets up to ₹1 crore, or ₹1 lakh for omitted assets up to ₹5 crore.
Do you own shares, a bank account or a flat abroad that is not in your Indian tax return? The Income Tax Department is running a one-time window to clean this up at a fixed cost. It closes on 31 December 2026. Here is what the scheme covers and what it costs, based on the department's own FAQ.
What FAST-DS is
The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) is in Chapter IV of the Finance Act, 2026. It came into force on 16 August 2026. A declaration can be filed between 16 August 2026 and 31 December 2026, and nothing can be filed after 31 December. The whole process is online. Assets are valued as on 31 March 2026.
Business Standard reported on 26 October 2026, citing finance ministry sources, that about 1,100 taxpayers had filed declarations so far. It also reported that the department is writing to some owners of UAE property.
Who can use it
You can declare if you were a resident of India in the relevant year. A person who is now a non-resident can also declare if they were resident in the year the income arose or the year the asset was bought. The grounds are that you did not file a return, did not show the asset or income in a return, or the asset or income escaped assessment.
The two routes and the cost
| Route | What you can declare | Limit | What you pay | | --- | --- | --- | --- | | 1 | Foreign asset or foreign income that was never offered to tax | ₹1 crore in total | 30% tax plus an equal amount, so 60% | | 2 | Foreign asset bought from income already taxed in India, or while you were a non-resident, but left out of the return schedule | ₹5 crore in total | Flat fee of ₹1 lakh |
If the assets are worth more than ₹5 crore, you cannot use the scheme.
The department's example for route 1: a foreign bank account valued at ₹60 lakh and foreign income of ₹20 lakh. Tax at 30% is ₹24 lakh, an equal amount is added, and the total payable is ₹48 lakh. Payment is made through challan ITNS 289, as reported by Mint.
How the value is worked out
The value is the higher of the cost of acquisition and the open-market price on 31 March 2026, ideally backed by a valuer's report from the country where the asset is. Quoted shares use the average of the day's lowest and highest price. A foreign bank account is valued at the total of all deposits since it was opened, with some exclusions. Foreign currency is converted to rupees at the RBI reference rate on 31 March 2026.
What to do now
- List every foreign asset and foreign income you have, with the year you got it and how you paid for it.
- Check your residential status for the year of purchase. It decides if you are eligible.
- Decide the route. Money that was never taxed goes to route 1. Money that was taxed but not reported goes to route 2.
- Get valuation papers early. A foreign valuer's report takes time.
- File the declaration and pay before 31 December 2026. Talk to a chartered accountant before you file. This guide is general information, not tax advice.
If you do nothing
Without a declaration, an undisclosed foreign asset can be taxed at 30% under the Black Money Act, 2015, with a penalty and possible prosecution, as explained by Economic Times. A valid declaration under FAST-DS gives protection for the assets and income it covers. The deadline is also in our tax calendar. For how your Indian return works, see the income tax calculator.
Sources: Income Tax Department: FAST-DS 2026 FAQs, Mint: I-T dept reaches out to taxpayers with UAE properties, 27 October 2026, Business Standard: FAST-DS gets 1,100 declarations, 26 October 2026, Economic Times: UAE property and FAST-DS, 27 October 2026.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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