FAST-DS 2026: Foreign Assets Disclosure Scheme

FAST-DS stands for Foreign Assets of Small Taxpayers Disclosure Scheme. FAST-DS 2026 is a proposed voluntary disclosure framework discussed in the Finance Bill 2026 for foreign asset compliance. This scheme helps eligible Indians, NRIs, and RNORs to declare their hidden foreign income or assets from past years and pay a reduced tax amount. Additionally, get relief from penalties and prosecution stated under the Black Money Act 2015 and the Income Tax Act, 1961.

Confused? Want to know more about this scheme? Then you are on the right destination. Read on the blog and get your answers. 

What is the New FAST-DS 2026 Scheme?

The FAST-DS 2026, discussed earlier, is a Foreign Assets of Small Taxpayers- Disclosure Scheme 2026. This scheme was introduced by the Central Government of India through Clauses 114-128 of the Finance Bill, 2026. It provides a one-time six-month voluntary window for eligible Indian residents, returning NRIs, and RNORs to disclose their foreign income or assets that were never reported or taxed in the ITR. 

Upon disclosure and payment of the stated fee or tax, this scheme provides relief to individuals from penalty and prosecution mentioned in the Black Money Act (Undisclosed Foreign Income and Assets) Imposition of Tax Act, 2015. The relief is automatic, which is granted by the Indian law once you make the payment.

The FAST-DS scheme specifically targets small taxpayers and NRIs who failed to report their certain foreign income or assets in past years. The intent behind it is:

• Provide an easy route to declare these assets.
• Ensure the payment of prescribed penalties and taxes.
• Provide relief from harsher circumstances under the Black Money Act.

Further, unlike past disclosures that target willful tax evasion, this scheme recognizes that many cases arose from:

• Frequent residential status changes between resident and NRI.
• Lack of awareness.
• Confusion around what qualifies as a reportable foreign asset and what does not.

However, this scheme does not apply to any criminal proceedings or large-scale offshore tax evasion. 

This was all about the FAST-DS 2026 scheme. Moving ahead, let's know the eligibility criteria for it. 

What is the Eligibility for FAST-DS 2026?

Eligibility for FAST-DS 2026 focuses on genuine and low-risk cases. Any individual who "was" or who "is" an Indian resident in the relevant financial year and who fulfills the conditions of the scheme is eligible for it. It also includes a returning NRI who currently holds resident but not ordinarily resident (RNOR) status, but was a resident in India when the undisclosed foreign asset or income was acquired. 

Furthermore, the scheme specifically targets the following categories:

• Individuals who studied abroad and retained dormant accounts or low-balance foreign accounts after completing their studies.
• NRIs who returned to India with undisclosed foreign investments, savings, insurance policies, or accounts.
• Tech employees with RSUs/ ESOPs who do not report these assets on their income tax return.
• Any person who is currently living outside India but was once an Indian resident while holding foreign income. 
• A Personnel on overseas deputation who may have a foreign income or assets.
• Any other individual who was/is a resident in India for a relevant period who filed the report Schedule FSI and Schedule FA. 
• NRIs with dormant foreign savings or brokerage accounts. 

This was all about eligibility criteria for FAST-DS 2026. Moving forward, let's discuss the assets and income that can be disclosed under this scheme. 

What are the Assets and Income Which can be Disclosed?

Before you state anything under the FAST-DS 2026, you should know what NRIs disclose foreign assets in India. To help you out, here is a simple breakdown to stay compliant and avoid mistakes:

These are the assets that you can disclose in the FAST-DS 2026 scheme. Moving further, let's know the categories and penalty structure of this scheme. 

FAST-DS 2026: Categories and Penalty Structure

The FAST-DS 2026 has two different categories with distinct cost implications:

This was all about the categories and penalty structure for the FAST-DS 2026 scheme. Moving forward, let's know the consequences of non-disclosure under this scheme.

What are the Consequences of Non-Disclosure?

The consequences of non-disclosure on FAST-DS 2026 are as follows:

• According to sections 42 and 43, the penalty is INR 10,00,000 per asset per year for non-disclosure. This penalty would even be imposed when you hold the asset as a beneficial owner. 
• As per Section 3 and Section 41, 30% flat tax on undisclosed asset value plus a penalty equal to 3 times that tax (=90% of value). Total outgo = 120% of asset value. No set-offs or deductions allowed.
• Under sections 49 and 50, criminal prosecutions carry the potential for imprisonment. Additionally, according to the Finance Bill 2026, prosecution will not be applied where foreign movable assets (excluding immovable property) aggregate less than INR 20,00,000.

Confused? Let's better understand this with an example.

For instance, you are an NRI returning to India. You hold INR 80,00,000 in your foreign bank account that you never disclosed. Considering this, foreign assets taxed under the Black Money Act, you face the following consequences:

• 30% tax = INR 24,00,000
• 90% penalty = INR 72,00,000
• Total = 120% of the asset value (INR 96,00,000)

It is more than the undisclosed asset you own. Additionally, you could also face legal action and notices.

Now, let's compare this with the Foreign Asset Disclosure Scheme- 2026. 

• Total outgo capped at around 60%
• No prosecution
• Clean state

Under this scheme, on the Fair Market Value (FMV) of your asset, you pay 30% tax. Plus 30% extra charge (penalty). So the total is 60% of the asset value, which is half of your financial burden. This further helps people in declaring their assets without the fear of paying more penalties. 

Now, moving ahead, let's know which ITR form should be submitted for foreign ESOP disclosure. 

Which ITR Form Should be Submitted for Foreign ESOP Disclosure?

You can use the following forms for foreign ESOP disclosure:

So these forms you can use for Foreign ESOP disclosure. 

Final Thoughts

Lastly, FAST-DS 2026 is not a scheme for serious tax evasion. It is a corrective tool for taxpayers who are facing issues between complex disclosure rules and global income. Considering this, if you are a returning NRI with overseas accounts, ESOPs, or foreign-held life insurance, then you also need to pay attention to the foreign asset disclosure. It provides you with the chance to reduce long-term risk, reset compliance, and move ahead with clarity. 

Furthermore, if you are facing difficulty with the Foreign Asset Disclosure Scheme 2026 filing, connect with Savetaxs. We have a team of top CAs who guide you on tax planning, ITR filing, and consultancy. Contact us and get personalized tax services as per your tax situation.