Now Reading: FAST-DS: Undisclosed foreign assets of Rs 1 cr attract 60% levy
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FAST-DS: Undisclosed foreign assets of Rs 1 cr attract 60% levy
The income tax department's Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) offers a one-time window until December 31, 2026, for small taxpayers to disclose previously unreported foreign assets and income. The penalty…
The income tax department's Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) offers a one-time window until December 31, 2026, for small taxpayers to disclose previously unreported foreign assets and income. The penalty depends on the category of the asset.
For undisclosed foreign assets or income not offered to tax, the total levy is 60% of the asset's fair market value as of March 31, 2026. On assets worth Rs 1 crore, this means a total payout of Rs 60 lakh.
For assets already offered to tax or acquired while the taxpayer was a non-resident but not declared in the ITR schedule, the penalty is a flat fee of Rs 1 lakh. This category covers foreign assets with an aggregate value up to Rs 5 crore.
Indian Opinion Analysis
The FAST-DS scheme targets small taxpayers, defined as those with foreign assets or income under Rs 1 crore for undisclosed items and Rs 5 crore for already-taxed items. This contrasts with the earlier Black Money Act window, which applied to all asset sizes. The steep 60% levy on undisclosed assets effectively combines a 30% tax and a 100% penalty on that tax, matching the base rate under the Black Money Act. The scheme is open for over two years, until December 31, 2026, giving eligible taxpayers time to assess their foreign holdings. The next step is for taxpayers to value their assets as of March 31, 2026, and file a declaration before the deadline.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
