FAST-DS 2026 • Official FAQ Summary
Foreign Assets of Small Taxpayers Disclosure Scheme, 2026
A one-time voluntary disclosure scheme for eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income and undeclared foreign assets.
📅 Commences: 16 August 2026
⏳ Last Date: 31 December 2026
📌 Valuation Date: 31 March 2026
💻 Entire Process: Online
Scheme Commences
16 Aug 2026
Last Date
31 Dec 2026
Valuation Date
31 Mar 2026
Filing Form
Form 1
FAST-DS at a Glance
🌍
Foreign Assets
Certain undisclosed assets located outside India can be declared subject to the conditions and thresholds of the Scheme.
💰
Foreign Income
Certain undisclosed foreign income that was chargeable to tax in India can be covered.
📄
Online Declaration
Declaration is made electronically in Form 1 to the prescribed income-tax authority.
Frequently Asked Questions
A. About the Scheme
Q1. What is the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026?
It is a one-time voluntary disclosure scheme contained in Chapter IV
(Sections 130 to 144) of the Finance Act, 2026. It enables eligible
taxpayers to declare certain undisclosed foreign assets, undisclosed
foreign income or undeclared foreign assets on payment of the specified
tax or fee.
Q2. When does the Scheme commence?
The Scheme comes into force on 16 August 2026.
Q3. What is the last date for filing a declaration?
The last date is 31 December 2026. No declaration can
be filed after this date.
Q4. What is the valuation date?
The valuation date is 31 March 2026. Fair market value
of assets proposed to be declared must be computed as on this date.
Q5. Which income-tax authority administers the Scheme?
The prescribed income-tax authority is the Principal Director General
of Income-tax (Systems) or Director General of Income-tax (Systems),
as applicable. The entire process will be conducted online.
B. Who Can Make a Declaration – Eligibility
Q6. Who is eligible to declare?
An assessee who is resident in India in the relevant previous year may
be eligible. Certain non-resident or RNOR persons may also qualify where
they were resident in India in the relevant previous year relating to
the undisclosed income or in the year in which the foreign asset was acquired.
Q7. Can a person who is presently non-resident make a declaration?
Yes. A present non-resident can qualify if the prescribed residency
conditions were satisfied in the relevant year.
Q8. Is RNOR status relevant?
Yes. The Scheme specifically covers certain non-resident and RNOR
persons meeting the prescribed residency conditions.
Q9. On what grounds can a declaration be made?
A declaration may be made where the assessee:
- failed to furnish a return under Section 139;
- failed to disclose the asset or income in a return furnished before commencement; or
- the asset or income has escaped assessment within the meaning of Section 147.
Q10. What is the filing window?
From 16 August 2026 to 31 December 2026.
Q11. Can a declaration be made for any previous year?
Yes, subject to the monetary thresholds and other conditions of the Scheme.
C. What Can Be Declared
Q12. What categories can be declared?
Two broad categories are recognised:
- Undisclosed foreign asset or undisclosed foreign income not offered to tax.
- Foreign asset already offered to tax or acquired when the assessee was non-resident, but not declared in the relevant Schedule of the return.
Q13. What is an undisclosed foreign asset?
An asset, including a financial interest in an entity, located outside
India and held in the assessee's name or beneficially owned by the assessee,
where the source of investment is unexplained or the explanation is
considered unsatisfactory by the Assessing Officer.
Q14. What is undisclosed foreign income?
It means foreign-source income chargeable to tax in India which has
not been offered to tax.
D. Monetary Thresholds & Amount Payable
Table Sl. No. 1
₹1 Cr
Maximum aggregate value of undisclosed foreign asset + foreign income.
Table Sl. No. 2
₹5 Cr
Maximum aggregate value of foreign assets.
Table Sl. No. 2
₹1 Lakh
Flat fee where prescribed conditions are satisfied.
Q15. What is the threshold under Section 133 – Table Sl. No. 1?
The aggregate value of the undisclosed foreign asset as on 31 March 2026
and undisclosed foreign income must not exceed ₹1 crore.
Q16. What is the threshold under Table Sl. No. 2?
The aggregate value of assets located outside India must not exceed
₹5 crore.
Q17. What amount is payable under Table Sl. No. 1?
The amount payable consists of:
- 30% tax on the value of the undisclosed foreign asset or foreign income; and
- an additional amount equal to the tax paid above.
Example – Foreign Bank Account + Foreign Income
Suppose an undisclosed foreign bank account is valued at ₹60 lakh and undisclosed foreign income is ₹20 lakh.
| Particulars | Value / Income | 30% Tax | Additional 100% | Total |
|---|---|---|---|---|
| Foreign Bank Account | ₹60 lakh | ₹18 lakh | ₹18 lakh | ₹36 lakh |
| Foreign Income | ₹20 lakh | ₹6 lakh | ₹6 lakh | ₹12 lakh |
| Total | ₹80 lakh | ₹24 lakh | ₹24 lakh | ₹48 lakh |
E. Valuation of Assets
Q21. What is the general approach for computing FMV?
Generally, FMV is the higher of:
- cost of acquisition; and
- the price the asset would ordinarily fetch in the open market on the valuation date.
Q22. How is bullion, jewellery or precious stone valued?
FMV is the higher of cost of acquisition and open-market price on the
valuation date, supported by a recognised valuer's report where applicable.
Otherwise, indexed cost of acquisition is deemed to be FMV.
Q23. How are paintings, sculptures and artistic works valued?
The higher of cost of acquisition and open-market price on the valuation
date is considered, subject to the prescribed valuation method.
Q24. How are quoted shares and securities valued?
FMV is the higher of cost of acquisition and the average of the lowest
and highest quoted price on an established securities market on the
valuation date.
Q25. What if quoted shares were not traded on the valuation date?
The average of the lowest and highest price on the nearest preceding
date on which the securities were traded is considered.
Q26. How are unquoted equity shares valued?
FMV is the higher of cost of acquisition and the value calculated under
the prescribed formula based on specified assets, liabilities and
share-related values.
Q27. How are other unquoted shares/securities valued?
FMV is generally the higher of cost of acquisition and the open-market
price on the valuation date, supported by a recognised valuation report
where applicable.
Q28. How is foreign immovable property valued?
FMV is the higher of acquisition cost and open-market price on the
valuation date, supported by a valuation report from a recognised
valuer in the country where the property is located.
Q29. How is a foreign bank account valued?
The value is generally the sum of deposits made into the account from
the date of opening up to the valuation date, subject to prescribed
exclusions.
Q33. How are residuary assets valued?
FMV is generally the higher of acquisition cost/amount invested and the
open-market price on the valuation date.
Q34. What if proceeds from one asset are used to acquire another?
The rules prevent double counting by reducing the FMV of the old asset
or bank account by the amount reinvested in the new asset.
Q35. How is foreign currency converted?
All values are reported in Indian Rupees. Prescribed RBI reference rates
and applicable foreign central bank/regulated bank rates are used for
currency conversion.
Q36. Will a difference between declared FMV and later FMV invalidate the declaration?
For assets other than bank accounts, a variance not exceeding
20% of the declared FMV will not, by itself, render the
declaration invalid on the specified grounds.
F. How to File – Form 1
Q37. How and where is the declaration filed?
The declaration is filed electronically in Form 1 to the
prescribed income-tax authority.
Q38. Can multiple assets or income items be included in one Form 1?
Yes. Form 1 and its Annexure provide for multiple asset or income entries.
Q39. Are supporting documents required?
Yes. Form 1 requires documents evidencing acquisition of the asset or
earning of the income and, where applicable, valuation reports.
G. Processing, Orders & Payment
1
Form 1
Submit declaration electronically.
2
Form 2
Authority communicates amount payable.
3
Form 3
Intimation and proof of payment.
4
Form 4
Certificate/order confirming payment.
Q40. What happens after Form 1 is submitted?
After electronic verification, the authority communicates the amount
payable through Form 2, generally within one month from
the end of the month in which the declaration was made.
Q41. When must the amount be paid?
The amount must be paid within two months from the end of the
month in which Form 2 is received.
Q42. What if payment cannot be made within the original period?
A further period of up to two months may be allowed with simple interest
at 1% for every month or part of a month of delay.
Q44. What is the outer time limit?
The maximum additional period allowed is four months from the end of the
month in which the original Form 2 payment order was passed. Failure to
pay within the outer limit causes the Scheme benefit to cease for that
declaration.
Q45. How is payment reported?
Payment is reported electronically through Form 3,
along with proof of payment and interest, if applicable.
Q46. What confirmation is issued after payment?
The authority issues an electronic order certifying the payment in
Form 4, subject to verification of Form 3.
H. Effect of a Valid Declaration – Benefits & Immunities
Protection After Valid Declaration & Payment
- No further tax or penalty under the Black Money Act, 2015 in respect of the declared income or asset, subject to the Scheme.
- Immunity from prosecution under the Black Money Act, 2015 for the declared income or asset.
- The declared income or investment amount is not included in total income under the specified provisions.
- Where assessment proceedings are pending, the Assessing Officer is required to take the declaration into account while finalising the assessment.
Q47. Can rectification, revision or set-off be claimed later?
No. In respect of income/assets declared or amounts paid, the declarant
cannot claim rectification or revision of assessments or set-off/relief
in related proceedings as specified.
Q48. What immunity is provided?
A valid declaration and payment provides the specified immunity from
further tax, penalty and prosecution under the Black Money Act, 2015
in respect of the declared income or asset.
Q49. What if assessment proceedings are already pending?
The Assessing Officer is required to take the declaration into account
while finalising the assessment order.
I. Where the Scheme Does Not Apply
⚠️ Important Exclusions
The Scheme is not available in respect of:
- Any income or asset that directly or indirectly represents proceeds of crime where proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002.
- Any income or asset relating to an assessment year for which assessment proceedings have already been completed under the Black Money Act, 2015.
Don't Miss the Filing Window
31 December 2026
Declarations under the FAST-DS 2026 must be filed on or before the prescribed last date.
Practical Checklist Before Filing
- Identify all foreign assets and foreign-source income covered by the Scheme.
- Determine whether the taxpayer satisfies the prescribed residential-status conditions.
- Check the applicable ₹1 crore / ₹5 crore threshold.
- Determine the correct FMV as on 31 March 2026.
- Obtain recognised valuation reports wherever required.
- Collect acquisition documents and evidence of foreign income.
- Prepare and electronically file Form 1.
- Track Form 2 and calculate the payment deadline carefully.
- Make payment within the prescribed period.
- File Form 3 with proof of payment.
- Obtain and preserve Form 4.
Tax Planning Takeaway
Don't Ignore Small Foreign Assets.
The Scheme creates a defined window for eligible taxpayers to disclose certain foreign assets and income. Eligibility, valuation, documentation and timelines need to be checked carefully before filing.
FAST-DS: FAQs
Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026
Prepared for informational and professional awareness purposes. Please refer to the applicable Finance Act, Rules, notifications and official guidance before taking any filing or compliance decision.
Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026
Prepared for informational and professional awareness purposes. Please refer to the applicable Finance Act, Rules, notifications and official guidance before taking any filing or compliance decision.
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