The government is nudging taxpayers voluntarily to come forward and disclose their foreign assets and income. The first campaign was launched in November 2024 and again in November 2025. Under these two campaigns, a total of 50,000 taxpayers were identified and proactively reminded to revise their already filed ITRs.

The target was only those taxpayers who intentionally or inadvertently did not disclose their assets situated outside India or income received from abroad in their ITRs filed till then. The high success rate of these initiatives has paved the way for one more structured tax amnesty scheme solely for non-disclosed foreign assets and income.

FAST-DS 2026

Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2026-27, had announced a voluntary disclosure scheme titled 'the Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS 2026)' for taxpayers. As a follow-up, on the early morning of August 15, a detailed Notification consisting of the rules and procedures was issued. It is a one-time opportunity for taxpayers to declare their undisclosed foreign assets, income, and undeclared foreign assets.

Scope of the scheme

Under the scheme, there are two categories of taxpayers. A taxpayer can declare his/her undisclosed assets located outside India or undisclosed foreign income, which was not offered to tax previously, termed as Category-I. However, if it was already offered to tax or was acquired when he/she was a non-resident, but failed to report in the relevant ITR, termed as category II. The window opened on August 16 and closes on December 31, 2026.

Who can utilise the scheme?

Resident, non-resident, and resident, but not ordinarily resident taxpayers, are eligible to avail the scheme subject to threshold limits.

Circumstances eligible

If a taxpayer failed to furnish an ITR or to disclose assets or income, including disclosures of foreign ESOPs/RSUs, low balance or dormant foreign bank accounts, insurance policies, in previously filed ITRs, or believes such assets or income escaped income tax assessment are all eligible.

Monetary thresholds

In the case of above-mentioned Category-I taxpayers, the aggregate value of the undisclosed assets or undisclosed foreign income not offered to tax, should not exceed Rs 1 crore. Similarly, in the case of Category-II taxpayers, the aggregate value of the assets located outside India should not exceed Rs 5 crore. If it exceeds, that taxpayer is ineligible.

Valuation rules

FAST-DS Rules 2026 have mandated a general approach for computing the fair market value for valuing the assets and incomes as of March 31, 2026. However, different methods should be adopted for valuing foreign bank accounts, bullion jewellery, listed and unlisted shares, immovable properties outside India, foreign partnership firm, LLPs and AoPs.

Amount payable with declaration

For Category-I, tax of 30% of the value of the undisclosed foreign asset/foreign income and an amount equal to the tax paid. For instance, if a taxpayer has an undisclosed foreign bank account valued at Rs 60 lakh and undisclosed foreign income of Rs 20 lakh, the aggregate amount payable is Rs 48 lakh. For Category-II, a flat fee of Rs 1 lakh is fixed.

Why should a taxpayer take note of the scheme seriously?

The Indian government is receiving terabytes of data on foreign assets and income held by Indians from 111 partner countries under the Automatic Exchange of Information framework. For the benefit of taxpayers, the tax department has started sharing those details with them through the AIS available in the tax return's e-filing portal.

An eligible taxpayer - not all - can view foreign bank details, interest, dividends, and other specified financial transactions held abroad. Currently, offshore transactions for three calendar years, CY2022, 2023 and 2024, were made available to the taxpayers last month. CY2025's data will also be available in due course once it is received in September-October 2026.

What should a taxpayer do now?

Since the much-awaited disclosure scheme has come into force, a taxpayer is expected to review all his/her foreign transaction details available with the tax department and its reconciliation with own records, ensuring accurate reporting in all the relevant previous years' ITRs. In any case, if a taxpayer falls in the aforesaid categories, they shall use the scheme and correct the records.

Thus, FAST-DS 2026 is an opportunity for taxpayers to escape the stringent actions under the black money law awaited after December 2026.