The government has opened a one-time voluntary disclosure scheme for taxpayers to declare their undisclosed or undeclared foreign assets and income. Under the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), taxpayers can declare their undisclosed foreign bank accounts, overseas property, jewellery, artistic works, unquoted shares and securities, other assets or undisclosed foreign income on payment of a specified tax or fee.
The Central Board of Direct Taxes (CBDT) on Saturday notified the rules for the scheme, which was announced in the Union Budget 2026 by Finance Minister Nirmala Sitharaman. The scheme comes into effect from Sunday, with December 31 the last date for filing these declarations.
“This scheme allows taxpayers with non-disclosure of foreign income and assets, up to specified thresholds to regularise their position through a simple, one-time process. Taxpayers with qualifying foreign holdings should evaluate eligibility and act promptly,” said Richa Sawhney, partner, tax, Grant Thornton Bharat.
Sitharaman in her Budget speech had said this scheme was aimed at addressing practical issues of small taxpayers such as students, young professionals, tech employees, relocated non-resident Indians.
There are two broad categories of declaration under the scheme. The first category covers undisclosed assets located outside India as on March 31, or undisclosed foreign income not exceeding Rs 1 crore. Under this category, taxpayers will have to pay a tax of 30% of the value assets or income declared, and another 30% as penalty.
The second category covers foreign assets with an aggregate value of up to Rs 5 crore. Here, taxpayers can settle the disclosure by paying a fee of Rs 1 lakh.
After electronic verification of the voluntary declaration, the income-tax authority will communicate the amount payable by way of an order within one month from the end of the month in which the declaration was made. The amount must be paid within two months from the end of the month in which the order is received, the ministry said.
The scheme does not apply for income or assets, which directly or indirectly represent proceeds of crime where proceedings have been initiated, or are pending, under the Prevention of Money-laundering Act, 2002, the ministry said.
It also does not apply for any income or asset relating to an assessment year for which assessment proceedings have already been completed under the Black money (Undisclosed Foreign income and assets) and Imposition of tax Act, 2015.
The ministry has fixed March 31 2026 as valuation date for the scheme. The ministry has also prescribed valuation methods for foreign bank accounts, bullion and jewellery, immovable property, archaeological collections, shares and securities.
After the payment for settlement of disclosure is completed, along with other condition, the taxpayer will be granted immunity from levy of any further tax or penalty and prosecution for any offence under the Black Money Act, 2015.
Disclaimer: This article is for informational purposes only and should not be construed as investment, financial, tax, or legal advice. Any illustrations, examples, or return projections used in this article are for explanatory purposes only and do not guarantee actual investment outcomes. The views and opinions expressed by experts quoted in this article are their own and should not be considered investment recommendations. Readers should consult a qualified professional before making any financial decisions.
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