India launches foreign asset disclosure scheme for small taxpayers

The Indian Income Tax Department has introduced the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), providing a one-time opportunity for taxpayers to declare previously undisclosed overseas assets and income.

Under the scheme, eligible taxpayers can regularize disclosures by paying a 30 per cent tax on the fair market value of the assets, plus an equal amount in penalties. A valid declaration offers immunity from further assessment, penalties, and prosecution under the Black Money Act. Additionally, taxpayers can report unaccounted assets for a Rs 1 lakh fee to avoid the annual Rs 10 lakh penalty prescribed by law.

Approximately 1,100 taxpayers have applied since the scheme's rollout on August 16. The program is open until December 31, 2026. To assist with compliance, the department has enabled a facility on the e-filing portal where taxpayers can view information reported by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework for the period 2022–2024. The Central Board of Direct Taxes (CBDT) has also established regional committees to address taxpayer queries.