Reference:

• The Central Board of Direct Taxes (CBDT) implemented the Foreign Asset Disclosure Scheme (FAST-DS 2026) from 16 August.

Key Points:

• Notification Date: 15 August 2026
• Scheme Period: 16 August 2026 to 31 December 2026 (one-time voluntary disclosure window)
• Cut-off Date for Valuation of Assets: The Fair Market Value (FMV) of assets will be determined as on 31 March 2026.
• Main Objective: To provide taxpayers an opportunity to voluntarily and within a specified time limit disclose their undisclosed foreign assets and income.
• Related Law: Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [Black Money Act, 2015]
• Stringent Framework of the Black Money Act, 2015: Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA), undisclosed foreign assets are subject to 30% tax, penalty of up to 300%, and imprisonment of up to 10 years.
• Unintentional Non-compliance: Many middle-class employees working in multinational companies (MNCs) who received ESOPs/RSUs, former students who studied abroad (and did not close their foreign bank accounts), and returning Non-Resident Indians (NRIs) may have failed to report such assets in Schedule FA (Foreign Assets) of their ITRs due to procedural complexities.
• AEOI and CRS Data Flow: Under Automatic Exchange of Information (AEOI) and the Common Reporting Standard (CRS), the government has received extensive information on foreign financial accounts through financial intelligence mechanisms, making it easier to identify such discrepancies.
• Promoting Compliance: The government aims to distinguish between deliberate tax evaders and small taxpayers who have made unintentional procedural omissions, thereby creating a flexible and compliance-friendly framework.
• Implementing Agency: Central Board of Direct Taxes (CBDT)

Main Categories, Limits and Tax Structure:

Special Note: If the total value of foreign assets exceeds ₹5 crore, the taxpayer will not be eligible to avail of this scheme.

Legal Immunity Available:

• Relief under the Black Money Act: Taxpayers making a valid declaration will receive full immunity from stringent penal actions, heavy penalties and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
• No Double Taxation: Income or assets declared under this scheme will not be included again in the taxpayer's total income under the Income-tax Act, 1961.

Administrative and Procedural Points:

• Mode of Declaration: Taxpayers will be required to submit their declaration electronically through the Income Tax Department's online portal in Form 1.
• Supervisory Authority: The entire process will be supervised by the Principal Director General / Director General (Systems).
• Payment Conditions: After filing the declaration, the department will issue an order within 1 month, after which the taxpayer will get 2 months to make the payment. In case of delay, simple interest at 1% per month will be applicable.
• Full Form of CBDT: Central Board of Direct Taxes
• Establishment of CBDT: 1964 (under the Central Boards of Revenue Act, 1963)
• Current Union Finance Minister: Nirmala Sitharaman
• Headquarters: New Delhi

Possible Questions:

➥  What is the full form of FAST in FAST-DS 2026? - Foreign Assets of Small Taxpayers

➥  What is the effective tax rate on undisclosed assets under this scheme? - 60% (30% tax + 30%        penalty)

➥  What is the last date for making the declaration? - 31 December 2026

➥  Under which stringent law does this scheme provide immunity from prosecution? - Black                 Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015