FAST-DS 2026 Scheme: If you have any property, bank account or investment abroad in your name

FAST-DS 2026 Scheme: If you own property, a bank account, or an investment abroad and haven't disclosed it in your Income Tax Return (ITR), this news is important. The Income Tax Department has given eligible taxpayers a special opportunity to correct past reporting errors related to foreign assets and income.

Taxpayers fulfilling the conditions laid down under the government's Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026 can submit details of previously undisclosed foreign assets or income.

The key feature of this scheme is that a fixed fee of only ₹1 lakh is charged for reporting foreign assets worth up to ₹5 crore in eligible cases. However, this facility does not apply to all undisclosed foreign assets.

What is FAST-DS 2026 plan?

FAST-DS 2026 is a special voluntary disclosure scheme of the Central Government, implemented under the Finance Act 2026.

It aims to provide relief for a limited period to eligible taxpayers whose foreign assets or income from abroad were not correctly recorded in the income tax records earlier.

The scheme is effective from August 16, 2026 and the last date for making declaration under it has been fixed as December 31, 2026.

Eligible taxpayers can regularise their past compliance defaults by furnishing details of foreign assets and income as per the prescribed procedure.

When will ₹1 lakh duty be levied on foreign assets worth ₹5 crore?

The scheme has a fixed fee of ₹1 lakh for cases where the source of funds used to purchase foreign assets is clear, but the details of the assets were not filed in the relevant ITR.

For example, a person may have purchased property from legitimate earnings while living abroad. Later, upon becoming a resident of India, he or she may not have disclosed the property in the relevant income tax return.

Similarly, if a person had purchased property abroad from income already declared as taxable in India but did not disclose the details of the same in the relevant schedule of ITR, relief can be availed under prescribed conditions.

The total value of foreign assets in such eligible cases should not exceed ₹5 crore.

Tax rules are different for undisclosed foreign income

It is important to understand that under FAST-DS 2026, not all taxpayers will get the facility to declare foreign assets by paying only ₹1 lakh.

If the source of investment of foreign assets is not clear or the taxable income received from abroad was not previously taxed, a different regime applies.

In such cases the combined value of undisclosed foreign assets and income should not exceed ₹1 crore.

In this category, a 30 percent tax is payable on the declared amount and an additional amount equal to the tax. Thus, the total payment effectively amounts to 60 percent.

How much will I have to pay in FAST-DS 2026?

This distinction is important, as merely having a foreign property valued below ₹5 crore does not automatically qualify for the ₹1 lakh fee category.

Which taxpayers can avail the benefits of the scheme?

Eligibility in FAST-DS 2026 depends on the residential status of the taxpayer for the respective years, source of purchase of property and income tax disclosures made earlier.

This may also include certain individuals who are currently non-residents but were residents of India during the relevant period.

While declaring foreign assets under the scheme, it is important to see when the property in question was purchased, where the money came from and whether tax was paid on that income earlier.

The scheme's benefits are not available in certain legal circumstances. For example, cases involving pending proceedings relating to proceeds of crime under the Prevention of Money Laundering Act may be excluded from the scheme.

How to apply online for FAST-DS 2026?

The Income Tax Department has provided the facility to apply for this scheme on the e-filing portal.

Eligible taxpayers can follow the below process:

1. Open the official website of Income Tax Department incometax.gov.in.
2. Log into the account with your PAN and login details.
3. Go to the e-File section.
4. Under Income Tax Forms, select the File Income Tax Forms option.
5. Select Form 1 of Foreign Assets Declaration Scheme in Forms related to other Acts.
6. Submit the declaration as per the prescribed procedure by filling in the required details.

The Income Tax Department then determines the amount payable through Form 2. After the payment, the taxpayer must submit Form 3. The department issues Form 4 once the prescribed conditions are met.

Keep in mind the last date of December 31, 2026

As per the official instructions of the Income Tax Department, the last date for submission of Form 1 under FAST-DS 2026 is December 31, 2026.

After this date, no new declaration can be filed under the scheme.

Therefore, taxpayers who have assets or income abroad and suspect that they have missed out on details in their old ITR should check their documents in time.

The scheme has fixed March 31, 2026 as the valuation date for valuation of foreign assets.

Will this scheme provide relief from fines and legal action?

Eligible taxpayers making valid declarations and making prescribed payments under FAST-DS 2026 may avail relief from specified taxes, penalties and prosecution in relevant cases under the Black Money Act, 2015.

However, this relief is subject to the legal conditions of the scheme.

Simply submitting an application does not automatically provide protection from all legal action. The declaration must be valid and the payment process must be complete.

Why is this scheme important for those who have assets abroad?

Many people who work, do business or invest abroad may have foreign bank accounts, properties or financial investments.

While filing income tax returns in India, certain taxpayers are required to provide details as per their residential status and applicable rules.

In such a situation, the opportunity to correct a previously made reporting mistake may be useful.

According to recent reports, the Income Tax Department is also sending messages to some taxpayers to review compliance based on information related to foreign assets.

What precautions should be taken before application?

Tax rules can be complex when it comes to foreign property. Therefore, it's advisable to review your ITRs for the relevant years, foreign bank statements, investment records, and property purchase documents before applying.

It is also important to clarify whether the amount used to purchase the property was already taxable or not.

Declaring the wrong category or providing incomplete information may affect the validity of the application.

Conclusion: FAST-DS 2026 provides eligible taxpayers a one-time opportunity to correct past reporting errors regarding foreign assets or income. A fixed fee of ₹1 lakh is applicable for certain cases of foreign assets up to ₹5 crore under prescribed conditions, while separate tax treatment applies to undisclosed income or assets with unexplained sources. Taxpayers wishing to avail the scheme should verify their eligibility and documentation before December 31, 2026.

Disclaimer: This article is based on official information and available reports from the Income Tax Department. It is advisable to consult a qualified chartered accountant or tax advisor before declaring foreign assets.