FAST-DS 2026: Foreign Asset Disclosure Window Closes 31 December 2026
The last date to declare foreign assets and foreign income under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) is 31 December 2026, and no declaration can be filed after that date. The scheme opened on 16 August 2026 under Chapter IV of the Finance Act, 2026, with rules and forms in CBDT Notification No. 114/2026 dated 14 August 2026.
The Income Tax Department is now pushing it actively. Advisory emails to taxpayers it believes hold assets abroad began in late September, and reports in late October said the department had stepped up outreach, including to people who bought property in the UAE. With 59 days left as of 2 November 2026, here is how the scheme works.
What the scheme offers
FAST-DS is a one-time window to regularise two kinds of foreign-asset lapses. Section 133 of the Finance Act, 2026 sets the amount payable for each:
| Category | What it covers | Value limit | Amount payable |
|---|---|---|---|
| 1. Undisclosed | Foreign asset bought from untaxed income, or foreign income never taxed in India | Aggregate value up to ₹1 crore | 30% tax plus an equal additional amount, i.e. 60% of the value |
| 2. Not reported | Foreign asset bought from income already taxed in India, or from foreign income earned while non-resident, but not shown in the foreign asset schedule of the return | Asset value up to ₹5 crore | Flat fee of ₹1,00,000 |
Assets are valued as on 31 March 2026. Several assets in one declaration are valued together.
Who it affects
The scheme is open to a person who was resident in India in the relevant year. It also covers someone who is non-resident or RNOR now but was resident in the year the asset was acquired or the income relates to. Typical cases:
- Residents holding a foreign bank account, shares or other investments that were never reported in Schedule FA.
- Returning NRIs who kept accounts or property abroad and did not report them after becoming resident.
- Owners of overseas property, such as a flat in Dubai, bought from savings that were taxed or not taxed in India.
How it works and the dates
| Step | Timeline |
|---|---|
| Form 1: declaration, filed and e-verified on the e-filing portal | Up to 31 December 2026 |
| Form 2: order determining the amount payable | Within 1 month from the end of the month in which Form 1 is filed |
| Payment through challan ITNS 289 | Within 2 months from the end of the month in which Form 2 is received |
| Late payment | A further 2 months at most, with simple interest of 1% per month or part of a month |
| Form 3: intimation of payment, then Form 4: certificate | Form 4 within 1 month from the end of the month in which Form 3 is filed |
Example: a declaration filed on 15 December 2026 should get its Form 2 by 31 January 2027. The amount is then due by 31 March 2027, and the outer limit with interest is 31 May 2027. If it is still unpaid, the declaration is void and treated as never made.
What it does not do
- No cover above the limits. Undisclosed assets and income above ₹1 crore, or unreported assets above ₹5 crore, cannot use the scheme.
- No cover for criminal proceeds. Assets linked to proceedings initiated or pending under the PMLA, 2002, and years already assessed under the Black Money Act, 2015, are excluded.
- No refunds or reopening. Amounts paid are not refundable, and past assessments cannot be rectified or revised for the declared items.
- No future relief. Immunity covers only the declared assets and income. Foreign assets still have to be reported in Schedule FA every year.
In return, a valid declaration gives immunity from further tax, penalty and prosecution under the Black Money Act for what is declared, and the declared amount is not added to total income again.
What to do now
- Check what the department already has. Log in to the e-filing portal and review the foreign asset information in your AIS, which carries data received from other countries under CRS and FATCA.
- List every foreign asset with its value as on 31 March 2026 and the source of the money, then decide which category applies.
- Do not ignore an advisory email. It is not a notice, but it shows the department has data. Type the portal address yourself instead of clicking links in emails.
- File Form 1 well before 31 December and keep funds ready, since the payment falls due within a few months of the order.
Need help with a foreign-asset disclosure?
TAXAJ advises residents and returning NRIs on NRI and foreign-income tax filing, Schedule FA reporting and FEMA questions on overseas holdings, from offices in Delhi, Bengaluru, Goa and Bihar. Selling property in India as an NRI? See our note on Form 141 for NRI property TDS. For every other CBDT change, visit our income tax news page.
Source: Section 133, Finance Act, 2026 (Chapter IV, FAST-DS); CBDT Notification No. 114/2026 dated 14 August 2026 (FAST-DS Rules, 2026); Income Tax Department FAST-DS 2026 FAQs and Form 1 user manual. Last updated 2 November 2026. This note is general information, not advice for any specific case.
