Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS 2026)

UPSC Reference Category: GS Paper III – Economy | Taxation | Financial Transparency

Why in News?

The Government operationalised the Foreign Assets of Small Taxpayers–Disclosure Scheme, 2026 (FAST-DS) through rules notified in August 2026. It provides a one-time opportunity to eligible taxpayers to disclose certain undisclosed foreign assets/income.

Key Features

  • Introduced through the Finance Act, 2026.
  • One-time voluntary disclosure mechanism.
  • Administered by CBDT.
  • Scheme became effective from 16 August 2026.
  • Last date for declaration: 31 December 2026.
  • Valuation date: 31 March 2026.
  • Covers:
    • Undisclosed foreign assets
    • Undisclosed foreign income
    • Certain foreign assets that were not reported despite being acquired from already-taxed income or income earned while non-resident.

Monetary Thresholds

Category 1

  • Aggregate value ≤ ₹1 crore
  • Tax payable broadly involves 30% tax + 100% of that tax.

Category 2

  • Certain unreported foreign assets
  • Aggregate value ≤ ₹5 crore
  • ₹1 lakh fee.

Forms

  • Form 1 → Declaration
  • Form 2 → Order determining amount payable
  • Form 3 → Payment intimation
  • Form 4 → Certification of validity/payment

Key Pointer

FAST-DS → Finance Act 2026 → CBDT → Foreign assets/income → One-time disclosure

Prelims Trap: FAST-DS is different from the Black Money Act, 2015; it provides a disclosure route with specified immunity subject to conditions.