The Income Tax Department notified a voluntary disclosure program on August 15, 2026, enabling small taxpayers to report certain undisclosed foreign assets and income by paying an effective 60 percent tax. The measure aims to bring overseas holdings under taxation while shielding qualifying individuals from additional penalties or legal action.
Known as the Foreign Assets of Small Taxpayers-Disclosure Scheme, or FAST-DS, the initiative was outlined in the 2026-27 Budget and begins on August 16, 2026. Online filings will remain open through December 31, 2026, according to the Central Board of Direct Taxes.
The program targets students, young professionals, technology workers, and returning non-resident Indians who may have omitted eligible foreign assets or income from prior filings.
Participants must pay 30 percent tax on the value of the declared asset or income, plus an equal surcharge, resulting in a total 60 percent levy. Asset values will be assessed as of March 31, 2026.
Two declaration categories exist. The first covers previously untaxed foreign assets or income, limited to 10 million rupees in total value. The second applies to assets already taxed or acquired during non-resident status but unreported in returns, with a 50 million rupee ceiling and a 100,000 rupee fee.
Valid declarations grant protection from further taxation, penalties, and prosecution under the Black Money Act regarding the disclosed items. The reported amounts will also be excluded from total income calculations under the Income-tax Act and the Black Money Act.
