Now Reading: 60% tax to disclose foreign assets under new FAST-DS scheme
-
01
60% tax to disclose foreign assets under new FAST-DS scheme
The Income Tax Department on Saturday notified the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), allowing eligible taxpayers to declare undisclosed foreign assets or income by paying an effective 60% tax. The…
The Story in Brief
The Income Tax Department on Saturday notified the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), allowing eligible taxpayers to declare undisclosed foreign assets or income by paying an effective 60% tax. The scheme, effective from August 16, 2026, targets students, young professionals, technology employees, and relocated non-resident Indians who failed to disclose foreign holdings. Online declarations are open until December 31, 2026.
Under the rules, taxpayers pay 30% tax plus an equal amount, totalling 60%, on the fair market value of assets determined as of March 31, 2026. Two categories exist: undisclosed assets or income up to Rs 1 crore, and assets already offered to tax or acquired as a non-resident but unreported, up to Rs 5 crore with a Rs 1 lakh fee. Valid disclosures grant immunity from further tax, penalty, or prosecution under the Black Money Act, as per the CBDT.
The Indian Opinion
Narratives that paint FAST-DS as a crackdown on tax cheats miss the point: the government itself created the trap of complex Black Money Act compliance for small fish. A fairer test would be how many first-time professionals, not wilful evaders, actually come forward. The real question is whether the 60% levy, plus valuation rigour, will yield meaningful disclosure or just drive small holders deeper into non-compliance.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
