Income Tax Department nudges taxpayers with undeclared foreign assets to disclose under FAST-DS 2026 Scheme: Here's what taxpayers should know

The Income Tax Department has stepped up efforts to persuade taxpayers with undisclosed assets abroad to use the Foreign Assets of Small Taxpayers-Disclosure Scheme, 2026 (FAST-DS), a one-time opportunity to declare foreign assets and income not previously disclosed, reported by ET Now, citing Finance Ministry sources. The Finance Ministry said the Income Tax Department is encouraging taxpayers with undeclared foreign assets to disclose them under the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS). The scheme offers a time-bound window to regularise eligible disclosures by paying 30 per cent tax on the fair market value of the assets, along with an equal amount as a penalty.

Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS)

As mentioned above, the Scheme provides a time-bound window to regularise eligible disclosures by paying 30 per cent tax on the fair market value and an equal amount of penalty in addition to tax. According to the ministry, valid declarations provide immunity from further assessment, penalties and prosecution.

The Scheme further provides an opportunity to the taxpayers to report accounted assets and income on payment of Rs 1 lakh fee to avoid penalty of Rs 10 lakh each year prescribed in the Black Money Act.

Around 1,100 taxpayers have filed applications under the scheme so far. The scheme will remain open until December 31, 2026.

CBDT receives around 1,100 applications under foreign assets disclosure scheme

About 1,100 taxpayers have filed applications under the voluntary disclosure of foreign assets scheme for small taxpayers in over two months since its rollout, according to a PTI report, citing Finance Ministry sources.

The government launched the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS), on August 16, offering a one-time opportunity to disclose unreported foreign assets and income. The scheme will close on December 31.

The voluntary disclosure scheme allows small taxpayers to declare certain undisclosed foreign assets and income by paying an effective 60 per cent tax.

Finance Ministry sources said the income tax department has planned outreach programmes for awareness among taxpayers, corporates, educational institutions, professional bodies and industry associations.

The central board of direct taxes (CBDT) has also set up a committee in each region under the Principal Chief Commissioner to help taxpayers resolve their queries and concerns.

Income Tax Department enables E-Filing portal facility to check foreign assets reported under CRS/FATCA

Sources also said that, to facilitate taxpayers, the department has created a facility in the e-filing portal where a taxpayer can see information with respect to assets reported on their PANs by the foreign jurisdictions, under Automatic Exchange of Information (AEOI), popularly known as CRS/FATCA.

Taxpayers can log in to the e-filing portal and download this information for the three years 2022-2024. Sources said in a high-level meeting on October 23, 2026, it has been decided that information or intelligence collected by the I-T Department may also be shared with relevant taxpayers, wherever possible, to enable them to take advantage of the Scheme.