The government is set to roll out the Foreign Disclosure Scheme 2026 (officially announced as FAST-DS or Foreign Assets of Small Taxpayers Disclosure Scheme in the Union Budget 2026) starting July 1, 2026, official surces told NDTV Profit. The compliance-focused initiative will provide a one-time, six-month window for Indians to voluntarily declare undisclosed foreign assets and income, offering immunity from stringent prosecution under the Black Money Act.
Unlike past compliance windows that targeted high-net-worth individuals and offshore accounts, FAST-DS aims to clean up past reporting lapses for middle-class and smaller taxpayers. This includes IT professionals holding foreign Employee Stock Ownership Plans (ESOPs), returning Non-Resident Indians (NRIs), and students who may have opened bank accounts or acquired minor assets while studying abroad, as per sources.
ALSO READ: $300 Billion Compensation Fund, Sanctions Relief, Frozen Assets: What's In US-Iran Peace Deal?
The Income-Tax (I-T) Department is expected to encourage taxpayers to utilize the limited-period opportunity to regularize their overseas holdings. The scheme categorizes declarations into two distinct buckets based on the asset value and nature of the non-compliance. Undisclosed foreign assets and income up to Rs 1 crore are eligible under Category 1. The declarations under category 1 will attract a 60% levy on fair market value.
Foreign asset reporting lapses involving assets up to Rs 5 crore are covered under Category 2. These cases will attract a flat one-time fee of Rs 1 lakh. This is applicable where income was disclosed and taxed in India, but foreign assets were not reported. The eligible declarants will get relief from Black Money Act prosecution and related penalties.
The incentive for eligible declarants is the blanket relief from the severe financial penalties and criminal prosecution tied to the Black Money Act. For many tech workers and returning expats, inadvertent omissions on Schedule FA (Foreign Assets) of their Indian Income Tax Returns have historically carried the threat of steep penalties. FAST-DS acts as a reset button. The window is expected to remain open until Dec. 31, 2026, giving taxpayers a runway to compile their global financial records.
ALSO READ: I-T Notices: Things To Know About Disclosure Of Foreign Assets In ITR Filings
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.