The Income Tax Department has stepped up efforts to encourage taxpayers holding undisclosed properties and other assets abroad to declare them under the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026.
The initiative is aimed at helping eligible taxpayers voluntarily disclose foreign assets and income that may not have been reported in their income tax returns.
Who Should Pay Attention to This Scheme?
The scheme is particularly relevant to taxpayers who have overseas financial interests, including:
- Residential or commercial properties outside India.
- Undisclosed foreign income.
- Overseas financial assets that were not properly reported.
- Certain foreign investments and employee stock benefits.
The department has also started contacting selected taxpayers with overseas property holdings, including properties in the UAE.
Disclosure Window Open Until December 31
The FAST-DS scheme was launched on August 16, 2026. Eligible taxpayers can submit declarations until December 31, 2026.
The initiative uses international financial information-sharing arrangements to identify foreign assets that may require disclosure.
What Taxpayers Need to Know About Charges
The scheme provides different disclosure routes depending on the value and nature of the undisclosed assets.
For certain undisclosed foreign assets or income worth up to ₹1 crore, the applicable provisions include 30% tax and an additional 30% amount in lieu of penalties.
Other categories have different conditions, including a prescribed disclosure fee.
Why Is This Update Important?
The initiative highlights the importance of correctly reporting overseas assets and income in Indian tax returns. Eligible taxpayers should review the scheme’s conditions carefully before making a declaration.
The scheme also reflects the Income Tax Department’s increasing use of international financial information to improve tax compliance.
