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The Income Tax Department has notified the rules for the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS), giving eligible taxpayers a one-time opportunity to disclose certain foreign assets and foreign income that were not properly reported earlier. The disclosure window opens on August 16, 2026, and taxpayers can use the scheme until December 31, 2026.
The scheme is particularly relevant for individuals who hold foreign shares, overseas bank accounts, property, securities or other foreign assets but may have missed the required disclosure in their income-tax returns.
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What Is FAST-DS 2026?
FAST-DS is a limited-period compliance scheme introduced under the 2026 tax framework. It provides eligible taxpayers a route to regularise certain undisclosed foreign assets or foreign income by paying the prescribed tax or fee.
The scheme broadly covers two different situations. The first involves foreign assets or foreign income that was not properly disclosed and where the underlying tax liability was not settled. The second covers certain foreign assets that were acquired from income that was already taxed or during a period when the taxpayer was a non-resident, but the asset was not subsequently reported as required.
βΉ1 Crore Category: 60% Total Payment
For undisclosed foreign assets or undisclosed foreign income, the aggregate value must not exceed βΉ1 crore as of March 31, 2026 to qualify under this category.
The taxpayer has to pay 30% tax along with an additional amount equal to 100% of that tax, resulting in a total payment of 60% of the relevant asset value or foreign income. The scheme provides specified immunity from penalties and prosecution once the applicable conditions are fulfilled.
This category is therefore mainly relevant where the underlying foreign income or asset itself was not properly disclosed for tax purposes.
βΉ5 Crore Category: βΉ1 Lakh Fee
A separate route is available for certain foreign assets valued at up to βΉ5 crore as of March 31, 2026.
This can cover assets acquired from income that was already offered to tax in India or assets acquired during a period when the taxpayer was non-resident, subject to the scheme’s conditions. In such cases, the prescribed amount is a βΉ1 lakh fee.
The distinction between these two categories is important. A taxpayer who simply failed to report an asset acquired from already-taxed income may be treated differently from someone whose foreign income or source of the asset was itself undisclosed.
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Foreign Stocks and RSUs
The scheme could be particularly relevant for Indians holding foreign investments.
Employees receiving RSUs or shares of overseas companies, investors holding US stocks through international brokerage accounts, and individuals maintaining foreign bank accounts should review their previous tax filings and foreign-asset disclosures.
Payment of tax on salary or capital gains does not necessarily remove the separate requirement to disclose applicable foreign assets. Taxpayers should therefore check whether their foreign holdings were correctly reported in the relevant return.
March 31, 2026 Is the Valuation Date
The scheme uses March 31, 2026 as the relevant valuation date for determining the value of foreign assets. The rules prescribe different valuation methods depending on the type of asset, including quoted securities, unquoted investments, property and other assets.
This is important for investors because the current market value of a foreign stock may be very different from its value on March 31, 2026.
Who Should Review Their Position?
Individuals who have foreign shares, RSUs, overseas bank accounts, foreign property or other overseas investments should review their previous tax returns and supporting records.
Documents such as brokerage statements, bank statements, RSU records, purchase documents and evidence showing the source of funds can help establish whether the asset was correctly reported and which category, if any, applies.
The scheme does not mean every foreign-asset holder needs to make a fresh declaration. Eligibility depends on the taxpayer’s circumstances, residential status, source of funds, previous disclosures and other conditions.
Deadline and Key Takeaway
The FAST-DS disclosure window runs from August 16 to December 31, 2026. The scheme provides a limited opportunity for eligible small taxpayers to regularise certain past foreign-asset and foreign-income reporting issues under specified conditions.
For investors holding foreign stocks, RSUs or overseas assets, the important step is to review previous tax filings and determine whether the required disclosures were made correctly. Since the financial and legal implications can be significant, taxpayers should obtain professional tax advice before making a declaration.
This article is for educational purposes only and does not constitute tax or legal advice.
