FAST-DS 2026: Foreign Asset Disclosure Scheme, Tax and Deadline

FAST-DS 2026 is a one-time scheme that lets eligible taxpayers declare foreign assets and foreign income they did not report. It is open from 16 August 2026 to 31 December 2026. If you already paid tax on a foreign asset but never showed it in your return, the cost is a flat ₹1 lakh fee. That fee applies if your foreign assets total no more than ₹5 crore. If the money was never taxed, you pay 30% tax plus an equal amount again. In that case the total must not exceed ₹1 crore. In return, you get immunity from further tax, penalty and prosecution under the Black Money Act, 2015 for what you declare.

The full name is the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, which is why it is often searched for as the foreign asset disclosure scheme 2026. It sits in Chapter IV, sections 130 to 144, of the Finance Act, 2026, and runs under the FAST-DS Rules, 2026. The Income Tax Department published official FAQs on 13 August 2026, and every figure on this page comes from them. This page explains who can use the scheme, how the two categories differ, what you actually pay, and how to file.

What FAST-DS 2026 is, in plain terms

FAST-DS is a voluntary disclosure window. It is aimed at taxpayers with relatively small foreign holdings who either never reported them or reported them incompletely. The key dates are fixed:

• Opens: 16 August 2026.
• Last date to file: 31 December 2026. No declaration can be filed after this date.
• Valuation date: 31 March 2026. Assets are valued as on this date, not on the day you file.
• Who processes it: the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems). The entire process is online.

The scheme is a one-time opportunity, and the official FAQ is clear that no declaration can be filed after 31 December 2026.

The two categories under the FAST-DS scheme, and why the difference matters

Most confusion about FAST-DS comes from treating it as a single scheme with a single price. It is not. There are two categories, and they cost very different amounts.

Category 2 covers a reporting lapse rather than untaxed money. It applies where the asset was already offered to tax, or was acquired while you were a non-resident, but was not declared in the relevant schedule of your return. For foreign assets worth up to ₹5 crore in total, that lapse is settled with a single ₹1 lakh fee.

Category 1 is for money that was never taxed at all. The scheme defines an undisclosed asset located outside India as an asset held in your name or beneficially owned by you, including a financial interest in an entity. It counts as undisclosed where you have no explanation for the source of the investment, or where the Assessing Officer finds your explanation unsatisfactory. Undisclosed foreign income is income from a source outside India that was chargeable to tax in India but was never offered to tax.

Who can declare under FAST-DS 2026

Eligibility turns on residential status. You can declare if either of these applies.

• You were resident in India under section 6 of the Income-tax Act, 1961 in the relevant previous year.
• You were a non-resident or a resident but not ordinarily resident (RNOR) in the relevant previous year. In that case, you must have been resident in India either in the year the undisclosed foreign income relates to, or in the year the undisclosed foreign asset was acquired.

That second limb matters. A person who is a non-resident today can still use FAST-DS, as long as they were resident in India when the income arose or when the asset was bought. You state your residential status for the relevant year in Form 1.

A declaration can be made on any of three grounds.

• You did not file a return under section 139 of the Income-tax Act, 1961.
• You filed a return before the scheme began but did not disclose the asset or income in it.
• The asset or income has escaped assessment within the meaning of section 147.

A declaration can cover any previous year, subject to the monetary limits and conditions of the scheme.

How much you pay under FAST-DS 2026

Category 1: 30% tax plus an equal amount

For Category 1, the amount payable has two parts. The first is tax at 30% of the value of the undisclosed foreign asset or of the undisclosed foreign income. The second is a further amount equal to that tax. In effect, you pay 60% of the value you declare.

The official FAQ gives this worked example. Suppose you hold an undisclosed foreign bank account valued at ₹60 lakh and undisclosed foreign income of ₹20 lakh. Here is how the amount payable is worked out.

Because ₹60 lakh plus ₹20 lakh is ₹80 lakh, this example sits inside the ₹1 crore limit for Category 1.

Category 2: a flat ₹1 lakh fee

For Category 2, the amount payable is a flat fee of ₹1 lakh, as long as the aggregate value of your assets located outside India does not exceed ₹5 crore.

The limit is a hard cut-off, not a slab. The official FAQ is explicit: if your foreign assets are worth, say, ₹6.5 crore, you are not eligible for the scheme at all. There is no higher fee band above ₹5 crore.

How foreign assets are valued under FAST-DS 2026

All values are computed as on the valuation date, 31 March 2026, and reported in Indian rupees. The general rule for fair market value is the higher of two figures: the cost of acquisition, and the price the asset would fetch in the open market on the valuation date. That market price should ideally be supported by a report from a valuer recognised by the government of the country where the asset is located. If no such valuation is carried out, the indexed cost of acquisition is treated as the fair market value.

Specific rules apply to common assets:

• Quoted shares and securities: the higher of cost and the average of the lowest and highest price on the valuation date. If there was no trading that day, the average of the lowest and highest price on the nearest earlier trading date is used.
• Immovable property outside India: the higher of cost and open-market value, based on a report from a valuer recognised in that country; otherwise indexed cost.
• Bullion, jewellery, precious stones and artworks: the higher of cost and open-market price, supported by a recognised valuer; otherwise indexed cost.
• Interest in a foreign partnership, AOP or LLP: net assets are first determined, then allocated by capital contribution, with the balance shared as per the agreement or, failing that, the profit-sharing ratio.

Foreign bank accounts are valued differently

A foreign bank account is not valued at its closing balance. Its value is the sum of all deposits made since the account was opened, up to the valuation date. Two exclusions prevent double counting. First, deposits that are simply withdrawals from the same account being re-deposited are left out. Second, if part of the account was earlier declared under Chapter VI of the Black Money Act, 2015, with tax and penalty charged, only deposits made after that earlier declaration are counted.

This can produce a figure far higher than the balance you see today, so it is worth computing carefully before deciding which category and limit you fall under.

Currency conversion and the 20% margin

Where a currency is designated by the Reserve Bank of India under the Foreign Exchange Management (Deposit) Regulations, 2016, it is converted at the RBI reference rate on the valuation date. Any other currency is first converted into US dollars at the rate set by the relevant country’s central bank, then into rupees at the RBI reference rate.

There is also some protection for honest valuation differences. Under Rule 5(2), this applies to assets other than a bank account. A difference of up to 20% between the value you declare and the value later determined by the Assessing Officer does not, by itself, make the declaration invalid.

How to file under FAST-DS 2026: Form 1 to Form 4

The process runs through four forms, all electronic:

• Form 1 — your declaration. File it online with the prescribed income-tax authority. You can list several assets or income items in one form. You must upload documents showing how the asset was acquired or the income earned, plus a valuation report where a valuation was carried out.
• Form 2 — the order. After verifying Form 1, the authority issues an order stating the amount payable, within one month from the end of the month in which you filed.
• Payment. Pay the amount within two months from the end of the month in which you receive the Form 2 order. If you miss that, you may pay within a further period of up to two months with simple interest at 1% for every month or part of a month. The FAQ describes four months as the outer limit; if you do not pay within it, the benefit of the scheme is lost for that declaration.
• Form 3 — payment intimation. Report the payment, with proof and any interest paid, within the period allowed.
• Form 4 — the certificate. Once Form 3 matches the Form 2 order, the authority issues an order certifying payment, within one month from the end of the month in which your intimation was received.

Because the window closes on 31 December 2026 and valuation reports and supporting documents take time to assemble, leaving Form 1 to the final weeks carries real risk.

What FAST-DS 2026 gives you, and what you give up

A valid declaration, followed by payment, gives you immunity from any further tax, penalty and prosecution under the Black Money Act, 2015 for the income or asset declared. The declared income, or the amount invested in the declared asset, is also not included in your total income under either the Income-tax Act, 1961 or the Black Money Act, 2015.

There is a trade-off. For the income or asset you declare, or any amount you pay, you cannot later claim rectification or revision of an assessment already made under either Act. You also cannot claim any set-off or relief in an appeal or other proceeding relating to that assessment. If assessment proceedings are already pending for the declared income or asset, the Assessing Officer must take your declaration into account when finalising the order.

When FAST-DS 2026 does not apply

FAST-DS is not available at all in two situations:

• For any income or asset that directly or indirectly represents proceeds of crime where proceedings have been started, or are pending, under the Prevention of Money-laundering Act, 2002.
• For any income or asset relating to an assessment year for which assessment under the Black Money Act, 2015 has already been completed.

A checklist before you file under FAST-DS 2026

Every case turns on its own facts, and the valuation rules alone can change the outcome. A chartered accountant who can review your documents is worth involving before you file. These are the questions to settle first:

• Which category are you in? Was the money ever taxed in India, or bought while you were a non-resident? If yes, and only the reporting was missed, you are likely looking at Category 2. If not, Category 1.
• What is the total value on 31 March 2026? Add up every foreign asset using the scheme’s valuation rules, not today’s balances. Check it against the ₹1 crore or ₹5 crore limit.
• Have you valued bank accounts correctly? Remember it is the sum of deposits since opening, not the current balance.
• Do you have the evidence? Form 1 needs proof of acquisition or income, and valuation reports where applicable.
• What was your residential status in the relevant year? This decides eligibility, particularly for non-residents and RNORs.
• Is there any money-laundering proceeding, or a completed Black Money Act assessment, for that year? If so, the scheme does not apply.

For the wider picture of this year’s tax changes, see our guide to income tax changes in 2026 and the Budget 2026 tax changes investors missed. If your foreign holdings include crypto, our explainer on crypto tax in India covers how virtual digital assets are reported. NRIs sending money home may also find the tax paper trail on remittances to parents useful.

Frequently asked questions