The Income Tax Department has made the Foreign Assets of Small Taxpayers – Disclosure Scheme 2026 (FAST-DS) available on its e-filing portal, giving eligible taxpayers a one-time opportunity to report certain foreign assets and overseas income that were not properly disclosed earlier.
The scheme is designed to help eligible individuals regularise specified reporting omissions through an online declaration process. The deadline for submitting Form 1 is December 31, 2026.
Who Can Use the Foreign Asset Disclosure Scheme?
The scheme covers eligible taxpayers who have not disclosed certain foreign assets or overseas income in their income tax returns.
It also provides a separate category for individuals whose foreign assets were acquired using income already taxed in India or income earned while they were non-residents, but were not reported in the relevant tax return schedule.
The eligibility conditions depend on the taxpayer’s residential status during the relevant year and the nature of the asset or income.
What Are the Financial Limits and Charges?
The scheme provides two separate disclosure categories:
- Category 1: For specified untaxed foreign assets or income, the combined value must not exceed ₹1 crore. The total amount payable is 60% of the declared value or income.
- Category 2: For eligible foreign assets acquired from explained or already-taxed sources but omitted from the required disclosure, the aggregate asset value must not exceed ₹5 crore. A flat fee of ₹1 lakh applies.
These categories have different eligibility requirements and payment conditions.
How Can Taxpayers Submit Form 1?
Eligible taxpayers can submit their declaration online through the Income Tax Department’s e-filing portal.
The filing process is available under:
e-File → Income Tax Forms → File Income Tax Forms → Forms as per Other Acts → Foreign Assets of Small Taxpayers Disclosure Scheme 2026.
The valuation date for the assets covered by the scheme is March 31, 2026. Applicants must provide the required information and supporting documents.
December 31 Is the Last Date
The disclosure window started on August 16, 2026, and will remain open until December 31, 2026. The department will not accept declarations after this deadline.
The scheme provides eligible taxpayers with a time-limited opportunity to address specified foreign asset and income reporting issues. Individuals should carefully check the applicable category, eligibility conditions and payment requirements before submitting a declaration.
