India notifies Foreign Assets of Small Taxpayers Disclosure Scheme

The Indian government has notified the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) 2026, providing a one-time opportunity for eligible taxpayers to disclose undisclosed foreign assets or income. The scheme is open from August 16 until December 31, 2026.

Eligibility extends to Indian residents, non-residents, and resident but not ordinarily resident (RNOR) taxpayers, provided they were residents during the relevant income year or when the asset was acquired. The scheme covers instances where taxpayers failed to file returns, omitted foreign assets, or where income escaped assessment.

The scheme is divided into two distinct categories:

1. Undisclosed foreign assets or income not previously offered to tax: The aggregate value must not exceed ₹1 crore. This category incurs a 30% tax plus an additional equal amount, resulting in a 60% effective levy.

2. Foreign assets already taxed or acquired as a non-resident but not reported in relevant returns: The aggregate value can be up to ₹5 crore. This category attracts a flat fee of ₹1 lakh.

Taxpayers with foreign assets exceeding ₹5 crore are ineligible for this scheme. Valuation is generally determined by the higher of the acquisition cost or the open-market value as of March 31, 2026.