CBDT notifies one-time disclosure scheme for small taxpayers’ foreign assets

The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) Rules, 2026, effective from August 16, 2026. Times Now reports the scheme is for eligible taxpayers who failed to declare certain undisclosed foreign income or assets. Livemint adds that the CBDT has also issued detailed FAQs explaining eligibility, declaration limits, and payment conditions.

The scheme allows residents, as well as non-residents or resident but not ordinarily resident (RNOR) individuals who were resident in India when the foreign income was earned or the asset acquired, to make a voluntary declaration. Livemint specifies that for undisclosed foreign assets or income with a combined value up to Rs 1 crore, the taxpayer must pay 30% tax plus an additional 100% of that tax, effectively 60%. For foreign assets not reported in returns but acquired from income already offered to tax, the aggregate value must not exceed Rs 5 crore, and a flat fee of Rs 1 lakh is payable.

Declarations can be filed electronically from August 16 to December 31, 2026. After filing Form 1, the income tax authority will issue Form 2 specifying the amount payable. Payment must be made within two months, with a possible extension of up to two months at 1% interest per month. The scheme does not apply to proceeds of crime under pending PMLA proceedings or assets already assessed under the Black Money Act, 2015.