India introduces FAST-DS 2026 for foreign asset disclosure

The Government of India has introduced the Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS 2026) to allow eligible taxpayers to regularize historical omissions regarding foreign income and assets. Operational as of August 16, 2026, the scheme provides a declaration window through December 31, 2026.

The scheme is divided into two primary categories. Category 1 covers undisclosed foreign income and assets with an aggregate ceiling of Rs. 1 crore, attracting both tax and penalties. Category 2 addresses technical non-disclosures, such as assets acquired during non-resident periods or those from income already taxed, with a ceiling of Rs. 5 crore and a flat fee requirement.

Applicable assets include foreign bank and brokerage accounts, shares, securities, ESOPs, RSUs, insurance policies, and immovable property. Successful compliance through the electronic filing process, involving Forms 1 to 4, provides taxpayers with specified immunities from tax, penalties, and prosecution.