FAST-DS 2026: Eligibility, Tax Calculation and Filing Guide

Overview

Foreign bank accounts, overseas shares, ESOPs, foreign property, insurance policies and other overseas holdings can create reporting obligations for Indian taxpayers. In some cases, these assets may have remained unreported because of an oversight, a change in residential status or uncertainty about foreign asset reporting. To address specified cases, the Government introduced FAST-DS 2026, formally known as the Foreign Assets of Small Taxpayers Disclosure Scheme 2026.

 

The scheme is contained in Chapter IV, Sections 130 to 144 of the Finance Act, 2026 and operates with the Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026. It provides eligible taxpayers with a one-time opportunity to declare specified undisclosed foreign assets, undisclosed foreign income or certain foreign assets that were not reported in the relevant income tax return schedule, subject to the applicable conditions and payment requirements. The Rules were notified through CBDT Notification No. 114/2026-Income Tax dated 14 August 2026, under Section 143 of the Finance Act, 2026, and came into force on 16 August 2026.

 

 

FAST-DS 2026 At a Glance

 

Particular	Details
Scheme	Foreign Assets of Small Taxpayers Disclosure Scheme 2026
Governing law	Chapter IV, Sections 130 to 144, Finance Act, 2026
Rules	Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026
CBDT Notification	Notification No. 114/2026-Income Tax dated 14 August 2026
Effective date	16 August 2026
Last date for declaration	31 December 2026
Valuation date	31 March 2026
Declaration form	Form 1
Mode	Electronic
Category 1 limit	Aggregate amount up to ₹1 crore
Category 2 limit	Aggregate foreign asset value up to ₹5 crore
Category 1 payment	30% tax plus an additional amount equal to the tax
Category 2 payment	₹1 lakh fee

 

 

Note: The official FAST-DS FAQs confirm that the scheme starts from 16 August 2026, declarations can be filed only up to 31 December 2026, and assets are valued with reference to 31 March 2026.

 

What Is FAST-DS 2026?

Section 130 of the Finance Act, 2026 gives the scheme its statutory name and provides for its commencement. At its core, FAST-DS 2026 is a time-bound voluntary disclosure mechanism. It is designed for specified foreign asset and foreign income situations rather than as a general amnesty for every tax default.

 

The official Budget 2026 FAQs explain that the scheme is intended to address cases such as foreign employment benefits including ESOPs or RSUs, dormant or low-value foreign bank accounts retained after studying overseas, certain foreign savings or insurance policies of returning non-residents and similar legacy non-disclosures.

 

For broader background on the policy changes announced in Budget 2026, readers can also refer to our guide on the Union Budget 2026-27 updates.

 

 

Who Can Make a Declaration Under FAST-DS 2026?

Eligibility depends significantly on residential status. Under Section 131 of the Finance Act, 2026, an assessee can include a person who was resident in India within the meaning of Section 6 of the Income-tax Act, 1961 in the relevant previous year.

 

The definition can also cover a person who is presently non-resident or Resident but Not Ordinarily Resident, commonly called RNOR, where the prescribed historical residency conditions are satisfied.

 

Can a Present NRI Use FAST-DS 2026?

Yes, subject to the statutory conditions.

 

A person who is currently non-resident can qualify if the person was resident in India either:

• In the previous year to which the undisclosed foreign income referred to in Section 4 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 relates; or
• In the previous year in which the undisclosed foreign asset was acquired.

Therefore, current NRI status alone does not determine eligibility under FAST-DS 2026. Historical residential status must also be examined.

 

For general background on NRI taxation and return filing, see our NRI Income Tax Return Filing in India guide.

 

How Does RNOR Status Affect Eligibility?

RNOR status can also be relevant. The FAST-DS definition expressly accommodates qualifying non-resident and RNOR taxpayers. Form 1 permits the declarant to specify residential status for the previous year in which the relevant asset was acquired or foreign income was earned.

Readers who need to understand the underlying residential status concept can refer to our guide on taxation of RNORs in India.

 

When Can a Declaration Be Made?

Section 132 of the Finance Act, 2026 specifies the circumstances in which a declaration may be made.

 

A taxpayer may declare eligible income or assets where the taxpayer:

• Failed to furnish a return under Section 139 of the Income-tax Act, 1961;
• Filed a return before commencement of the scheme but failed to disclose the relevant asset or income; or
• Has an asset or income that escaped assessment within the meaning of Section 147 of the Income-tax Act, 1961.

The official statutory provision can be read here.

A declaration can relate to any previous year if the relevant income or asset falls within Section 133 of the Finance Act, 2026 and all monetary and other conditions of FAST-DS 2026 are satisfied.

 

 

What Can Be Declared Under FAST-DS 2026?

Section 133 of the Finance Act, 2026 divides covered declarations into two broad categories.

Category 1: Undisclosed Foreign Asset or Foreign Income

Section 133, Table, Serial No. 1 covers:

• An undisclosed asset located outside India; or
• Undisclosed foreign income.

The aggregate value of the undisclosed foreign asset as on 31 March 2026 and the undisclosed foreign income must not exceed ₹1 crore.

 

What Is an Undisclosed Foreign Asset?

An undisclosed foreign asset includes an asset, including a financial interest in an entity, located outside India and held by the assessee either in his or her own name or as a beneficial owner, where there is no satisfactory explanation regarding the source of investment.

 

This definition comes from Section 131 of the Finance Act, 2026.

 

What Is Undisclosed Foreign Income?

Undisclosed foreign income means income of an assessee from a source located outside India that was chargeable to tax in India but was not offered to tax.

 

Taxpayers investing in overseas securities can also read our detailed guide on US stocks tax implications and foreign asset disclosure for Indian residents.

Category 2: Foreign Asset Not Reported in the Relevant Schedule

Section 133, Table, Serial No. 2 covers specified foreign assets that were:

• Acquired from income already offered to tax in India; or
• Acquired when the assessee was a non-resident,

But were not declared in the relevant schedule of the income tax return.

 

For this category, the aggregate foreign asset value must not exceed ₹5 crore.

 

The official FAQs illustrate that where the qualifying foreign asset value is ₹6.5 crore, the ₹5 crore ceiling is exceeded and the assessee cannot use this category of FAST-DS 2026.

 

 

Category 1 vs Category 2 Under FAST-DS 2026

 

Particular	Category 1	Category 2
Provision	Section 133, Table Sl. No. 1	Section 133, Table Sl. No. 2
Nature	Undisclosed foreign asset or undisclosed foreign income	Specified foreign asset not reported in the relevant return schedule
Monetary ceiling	₹1 crore aggregate	₹5 crore aggregate
Payment	30% tax + amount equal to tax	₹1 lakh fee
Valuation date	31 March 2026	31 March 2026

 

 

Correct classification is important because FAST-DS 2026 does not apply the same tax or fee to both categories.

 

How Much Is Payable Under FAST-DS 2026?

Category 1 Calculation

 

Under Section 133, Table, Serial No. 1 of the Finance Act, 2026, the amount payable is the aggregate of:

• Tax at 30% of the value of the undisclosed foreign asset as on 31 March 2026;
• Tax at 30% of the undisclosed foreign income; and
• An additional amount equal to 100% of the tax calculated above.

Therefore, where all the declared amount falls within Category 1, the combined payment mathematically equals 60% of the relevant value/income.

 

 

 

Note: The ₹60 lakh foreign bank account plus ₹20 lakh foreign income illustration is the example contained in the official FAST-DS FAQs.

 

Amount Payable Under Category 2

A declaration falling under Section 133, Table, Serial No. 2 attracts a flat fee of ₹1 lakh, provided the aggregate value of the qualifying foreign assets does not exceed ₹5 crore.

 

The Category 1 calculation of 30% tax plus an equal additional amount should not be applied to Category 2.

 

 

How Are Assets Valued Under FAST-DS 2026?

Asset valuation is governed primarily by Rule 3 of the Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026.

 

As a general rule, fair market value is the higher of:

• Cost of acquisition; and
• The price the asset would ordinarily fetch if sold in the open market on the valuation date.

Where applicable, the value is supported by a report from a valuer recognised by the government or its agency in the country where the asset is situated. Where such market valuation is not carried out, indexed cost of acquisition is treated as FMV in accordance with the Rules.

 

The Rules were issued under the rule-making authority contained in Section 143 of the Finance Act, 2026.

 

Asset-Wise Valuation Rules

• Bullion, Jewellery and Precious Stones: FMV is the higher of acquisition cost and open market price on the valuation date, with the prescribed valuation support. If the relevant valuation is not carried out, indexed cost of acquisition applies as provided by the Rules.
• Paintings, Sculptures and Artistic Works: Archaeological collections, paintings, sculptures and other artistic works follow a similar cost-versus-market-value approach under Rule 3 of the FAST-DS Rules, 2026.
• Quoted Shares and Securities: The FMV is the higher of acquisition cost and the average of the lowest and highest prices quoted on an established securities market on the valuation date. If no trading takes place on that date, the average of the lowest and highest prices on the nearest preceding trading date is used.
• Unquoted Equity Shares: Unquoted equity shares are valued by comparing acquisition cost with the value determined through the prescribed formula, which takes into account specified assets, liabilities and the paid-up value of equity shares.
• Other Unquoted Securities: For unquoted securities other than equity shares, valuation generally considers the higher of acquisition cost and open market value, subject to the valuation requirements under the Rules.
• Foreign Immovable Property: For property located outside India, FMV is generally the higher of acquisition cost and open market price on the valuation date, supported by a valuation report from a valuer recognised by the government or its agency in the country where the property is situated.

 

 

How Is a Foreign Bank Account Valued?

Foreign bank accounts have a specific valuation method under FAST-DS 2026. The value is based on the sum of deposits made into the account from the date it was opened until the valuation date, subject to specified exclusions. Amounts redeposited from withdrawals made from the same account are excluded to prevent double counting.

In the example provided in the official FAQs, the applicable value comes to $4,900, which is then converted into Indian rupees as on 31 March 2026.

 

 

What If the Bank Account Was Previously Declared?

Where a foreign bank account or part of it was previously declared under Chapter VI of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, and tax and penalty were charged on that value, only deposits made since the relevant declaration date are aggregated, subject to the Rules.

 

The official illustration calculates the subsequent account value at $3,100 before conversion to Indian rupees.

 

Valuation of Interest in a Foreign Partnership, AOP or LLP

For an interest in a foreign partnership firm, Association of Persons or LLP, the valuation process broadly involves:

• Determining the entity’s net assets on the valuation date;
• Allocating the portion corresponding to capital contribution according to the partners’ or members’ capital contribution ratio; and
• Allocating residual net assets according to the dissolution arrangement or, if none exists, the profit-sharing ratio.

 

Valuation of Other Foreign Assets

Where no specific valuation method is provided, the value is generally the higher of:

• Cost of acquisition or amount invested; and
• The amount the asset would fetch in an arm’s-length open market transaction on the valuation date.

The indexed cost rule applies where prescribed valuation is not undertaken, as provided under the Rules.

 

 

What If One Foreign Asset Was Used to Buy Another?

FAST-DS 2026 contains an anti-double-counting mechanism.

 

Where proceeds from an asset or withdrawals from a bank account are reinvested in another asset, the FMV of the earlier asset or bank account is reduced by the amount reinvested, while the newly acquired asset is valued independently.

 

 

How Is Foreign Currency Converted Into INR?

All values must be reported in Indian rupees.

 

For currencies designated by the Reserve Bank of India under the Foreign Exchange Management (Deposit) Regulations, 2016, conversion is made using the RBI reference rate on the valuation date.

 

For other currencies, the foreign currency is first converted into US dollars using the applicable central bank rate or, where required, another regulated bank’s rate.

 

The resulting USD amount is then converted into INR using the RBI reference rate on the valuation date.

 

 

What If the Assessing Officer Finds a Different Value?

Rule 5(2) of the Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026 provides an important valuation safeguard.

 

For assets other than bank accounts, a variance not exceeding 20% of the fair market value declared does not, by itself, render the declaration invalid or void on the ground of misrepresentation, suppression of facts or furnishing false particulars.

 

This is not a general 20% valuation concession. It deals specifically with whether a valuation difference, by itself, invalidates the declaration.

 

 

How to File FAST-DS 2026 Online?

The declaration is filed electronically in Form 1 with the prescribed income tax authority.

 

 

 

 

For document preparation, see our guide on documents required for ITR filing, including foreign income and overseas records where applicable.

 

Documents Required With Form 1

The official Rules require supporting documents evidencing acquisition of the asset or earning of foreign income.

 

Where valuation is undertaken, a valuation report may also be required for assets such as:

• Immovable property;
• Jewellery;
• Paintings or artistic works;
• Unquoted shares and securities; and
• Other assets requiring prescribed valuation.

 

 

What Happens After Form 1?

The procedural stages are governed by Section 135 of the Finance Act, 2026. After electronic verification, the income tax authority communicates the amount payable through Form 2, generally within one month from the end of the month in which the declaration was made.

 

FAST-DS 2026 Form Flow

 

 

 

 

Payment Timeline Under FAST-DS 2026

Under Section 135(2) of the Finance Act, 2026, the amount determined must be paid within two months from the end of the month in which the Form 2 order is received.

 

If payment is not made within that period, Section 135(3) permits payment during a further period not exceeding two months, together with simple interest at 1% for every month or part of a month on the amount due. The official FAQ also specifies the applicable outer limit, beyond which the benefit of FAST-DS 2026 ceases to be available for that declaration.

Form 3 and Form 4

After making payment, the assessee must furnish the payment details and proof electronically in Form 3 within the applicable payment period.

 

Once the authority finds the Form 3 intimation to be in accordance with the Form 2 order, it issues Form 4, certifying payment. The certification is to be communicated electronically within one month from the end of the month in which the payment intimation was received.

 

 

Benefits and Legal Consequences of FAST-DS 2026

Section 136 of the Finance Act, 2026 provides that income or the amount invested in an asset validly declared is not included in total income under the historical tax framework specified in that section where the required payment conditions are met.

 

A valid declaration also provides specified immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for the income or asset covered by the declaration. However, the protection is limited to the declared matter.

 

The declarant also cannot seek rectification, revision, set-off or relief in relation to specified completed assessments covered by Section 137 of the Finance Act, 2026.

 

Amounts paid under the scheme are also non-refundable under Section 138.

 

 

When Does FAST-DS 2026 Not Apply?

The scheme does not apply in certain situations.

 

Proceeds of Crime: An income or asset cannot be covered where it directly or indirectly represents proceeds of crime in respect of which proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002.

 

Completed Black Money Act Assessment: The scheme also does not apply to income or assets relating to an assessment year for which assessment proceedings have already been completed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

 

 

Foreign Income, Foreign Assets and Regular ITR Compliance

FAST-DS 2026 should not be confused with the normal annual reporting of foreign assets and foreign-source income.

 

Taxpayers who are required to disclose overseas holdings should continue to use the appropriate ITR and applicable schedules. For example, foreign assets and foreign income may affect whether an individual can use a simplified return form.Our ITR Forms Guide provides an overview of which income tax return may apply depending on income type and foreign asset circumstances.

 

Taxpayers who have suffered tax overseas may also need to separately examine foreign tax credit provisions. Such credit is governed by the applicable provisions of Indian tax law, including Rule 128 of the Income-tax Rules, 1962, and is distinct from the disclosure mechanism under FAST-DS. Read Foreign Tax Credit Guide for more clarity on the concept.

 

 

FAST-DS 2026 Decision Flow

 

 

 

How Can Ebizfiling Help With FAST-DS 2026?

A declaration under FAST-DS 2026 can involve historical residential status, multiple foreign assets, different valuation methods, supporting records and strict filing and payment timelines.

 

Ebizfiling can assist taxpayers with understanding the applicable declaration category, reviewing relevant documentation, identifying the information required for valuation and coordinating the filing process based on the information and supporting records provided by the taxpayer. For related tax compliance assistance, taxpayers can also use our online Income Tax Return Filing service.

 

Need help with FAST-DS 2026? Connect with Ebizfiling today to review your eligibility, disclosure category and filing requirements before the 31 December 2026 deadline.

 

 

Conclusion

FAST-DS 2026 provides a time-bound opportunity for eligible taxpayers to address specified undisclosed foreign assets, undisclosed foreign income and certain foreign assets that were not reported in the relevant income tax return schedule.

 

However, the scheme is not based merely on whether a taxpayer owns a foreign asset. Eligibility may depend on historical residential status, the nature and source of the asset or income, the applicable category under Section 133 of the Finance Act, 2026, the ₹1 crore or ₹5 crore threshold and the valuation rules prescribed under the Foreign Assets of Small Taxpayers-Disclosure Scheme Rules, 2026.

 

Taxpayers also need to follow the complete procedural chain of Form 1, Form 2, payment, Form 3 and Form 4. The amount paid under the scheme is non-refundable, and a valid declaration can affect subsequent rights relating to rectification, revision and other proceedings.

 

Since the declaration window closes on 31 December 2026, taxpayers considering FAST-DS 2026 should review their historical foreign assets, foreign income, residential status and supporting records well before the deadline.

 

 

Frequently Asked Questions