Taxpayers with undisclosed foreign assets up to ₹1 crore owe 30% tax plus 100% penalty — a 60% total cost. FAST-DS runs August 16 through December 31, 2026.
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A taxpayer with an undisclosed foreign asset worth ₹1 crore could owe ₹60 lakh in taxes and penalties under a new disclosure window opening August 16, the government said in the scheme's framework.
The Foreign Assets of Small Taxpayers Disclosure Scheme, or FAST-DS, runs until December 31, 2026, and targets smaller cases of foreign income and assets that were not previously disclosed or taxed. The government described the window as a voluntary compliance measure for items such as foreign ESOPs, RSUs, dormant overseas bank accounts and assets held by returning non-residents.
The 60% figure is not a single tax rate. It is the combined effect of a 30% tax on the disclosed value and an additional amount equal to 100% of that tax, per Section 133 of the scheme. A taxpayer declaring ₹20 lakh of undisclosed foreign income, for example, would owe ₹6 lakh in tax plus another ₹6 lakh as the additional amount – a total of ₹12 lakh.
Taxpayers need to determine which of the two FAST-DS categories applies before doing the math. The first category covers undisclosed foreign assets where the taxpayer has no explanation for the source of investment, or the explanation is considered unsatisfactory, and undisclosed foreign income that was chargeable to tax in India but was not offered to it. The aggregate ceiling for assets and income under this category is ₹1 crore.
The second category covers specified foreign assets acquired from foreign income when the taxpayer was non-resident, or from income already offered to tax in India, but not reported in the relevant schedule of the tax return. This category has a higher threshold of ₹5 crore and requires a fee of ₹1 lakh, subject to conditions. A taxpayer should not apply the 60% calculation without first confirming which category the asset or income falls into, the framework said.
The valuation date for undisclosed assets under the first category is March 31, 2026, with fair market value as the benchmark.
The scheme is available to people who are or were Indian residents during the relevant period. It covers cases where a taxpayer failed to file a return, failed to disclose the asset or income in a return already filed, or where the asset or income escaped assessment within the specified provisions. It can also include some people who are currently non-residents, or resident but not ordinarily resident, if they were residents when the foreign income arose or when the foreign asset was acquired.
The distinction between the two categories is particularly relevant for people who worked abroad, returned to India with overseas savings, or retained foreign bank accounts or investments after becoming Indian residents, the framework said.
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