The Indian government has opened a new window for small taxpayers to come clean about certain undisclosed foreign assets and income, offering protection from further penalties and prosecution in return for a tax payment. The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the Union Budget 2026-27, comes into force on Sunday (Aug 16). The Income Tax Department notified the scheme on Saturday (Aug 15), with online declarations open until December 31, 2026.The scheme is primarily aimed at taxpayers who may have missed reporting overseas assets or income, including students, young professionals, technology workers and non-resident Indians who have relocated to India.Under FAST-DS, eligible taxpayers must pay tax at 30 per cent on the value of the declared asset or income, along with an additional amount equal to the tax. This effectively takes the levy to 60 per cent.The Central Board of Direct Taxes said the value of foreign assets will be calculated using their fair market value as on March 31, 2026.Also read | <a href="https://www.wionews.com/photos/independence-day-2026-9-lesser-known-facts-about-india-s-freedom-struggle-1786618956261">Independence Day 2026: 9 lesser-known facts about India’s freedom struggle</a>The scheme provides two routes for disclosure. The first covers foreign assets or income that were not previously offered to tax, provided their combined value does not exceed Rs 1 crore.The second applies to foreign assets that were already offered to tax or acquired while the taxpayer was a non-resident but were not reported in the relevant schedule of the income tax return. The limit in this category is Rs 5 crore, subject to a Rs 1 lakh fee.The CBDT said the scheme will allow eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” by paying the prescribed tax or fee.A CBDT example shows that if an undisclosed foreign bank account is worth Rs 60 lakh and undisclosed foreign income stands at Rs 20 lakh, the total tax payable under the scheme would be Rs 48 lakh.Those making valid declarations will receive immunity from further tax, penalties and prosecution under the Black Money Act for the disclosed assets or income, the CBDT said. &nbsp;

The government has launched FAST-DS, allowing eligible small taxpayers to disclose certain undisclosed foreign assets or income at an effective 60% tax, with immunity from further penalties and prosecution.

The Indian government has opened a new window for small taxpayers to come clean about certain undisclosed foreign assets and income, offering protection from further penalties and prosecution in return for a tax payment. The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the Union Budget 2026-27, comes into force on Sunday (Aug 16). The Income Tax Department notified the scheme on Saturday (Aug 15), with online declarations open until December 31, 2026. The scheme is primarily aimed at taxpayers who may have missed reporting overseas assets or income, including students, young professionals, technology workers and non-resident Indians who have relocated to India. Under FAST-DS, eligible taxpayers must pay tax at 30 per cent on the value of the declared asset or income, along with an additional amount equal to the tax. This effectively takes the levy to 60 per cent. The Central Board of Direct Taxes said the value of foreign assets will be calculated using their fair market value as on March 31, 2026. Also read | Independence Day 2026: 9 lesser-known facts about India’s freedom struggle The scheme provides two routes for disclosure. The first covers foreign assets or income that were not previously offered to tax, provided their combined value does not exceed Rs 1 crore. The second applies to foreign assets that were already offered to tax or acquired while the taxpayer was a non-resident but were not reported in the relevant schedule of the income tax return. The limit in this category is Rs 5 crore, subject to a Rs 1 lakh fee. The CBDT said the scheme will allow eligible taxpayers to disclose “certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets” by paying the prescribed tax or fee. A CBDT example shows that if an undisclosed foreign bank account is worth Rs 60 lakh and undisclosed foreign income stands at Rs 20 lakh, the total tax payable under the scheme would be Rs 48 lakh. Those making valid declarations will receive immunity from further tax, penalties and prosecution under the Black Money Act for the disclosed assets or income, the CBDT said.

The government has launched FAST-DS, allowing eligible small taxpayers to disclose certain undisclosed foreign assets or income at an effective 60 per cent tax, with immunity from further penalties and prosecution.

Have undeclared foreign assets? New govt scheme may help avoid prosecution – Here’s how

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Have undeclared foreign assets? New govt scheme may help avoid prosecution – Here’s how