Context
The Government has notified FAST-DS, a one-time voluntary disclosure scheme under Chapter IV of the Finance Act, 2026.
Key Features
- Enables eligible taxpayers to disclose specified undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets by paying the prescribed tax or fee.
- Covers immovable property, jewellery, artworks, shares, securities and other foreign assets/income.
- Nodal Agency: Central Board of Direct Taxes (CBDT).
- It has two categories:
- Category 1 – Undisclosed Foreign Assets/Income
- Covers assets/income not previously offered to tax, with aggregate value up to ₹1 crore.
- taxpayers need to pay 30% tax + 30% additional income tax in lieu of penalty in order to get immunity from prosecution.
- Category 2 – Non-Reporting of Declared Assets
- Covers foreign assets that were already taxed or acquired while the taxpayer was a non-resident, but were not reported in the relevant tax-return schedule.
- Threshold: ₹5 crore.
- Payment: ₹1 lakh fee in order to get immunity from penalty and prosecution.
Legal Protection
Valid declarations provide specified immunity to taxpayers from any further tax or penalty and from prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
FAQs
Q1. What is FAST-DS?
A one-time scheme under the Finance Act, 2026 for voluntary disclosure of specified foreign assets/income.
Q2. What is the Category 1 threshold?
Aggregate undisclosed foreign assets/income must not exceed ₹1 crore.
Q3. What does Category 2 cover?
Foreign assets already taxed or acquired as a non-resident but omitted from the relevant tax-return schedule.
Q4. Which body administers FAST-DS?
The Central Board of Direct Taxes (CBDT) is the nodal agency.
