FAST-DS 2026: Who Should Declare Foreign Assets Before 31 December
India's one-time foreign asset disclosure window, the two routes, what they cost, and why the tax department is now writing to UAE property owners.
FAST-DS 2026 is a one-time window, open until 31 December 2026, for people who were resident in India to declare foreign assets or income they did not report. If the asset came from income already taxed in India, or was bought while you were a non-resident, the cost is a flat ₹1 lakh fee for assets up to ₹5 crore. Assets that were never taxed cost 30% tax plus an equal penalty, up to ₹1 crore.
Key points
- The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) sits in sections 130 to 144 of the Finance Act, 2026. It came into force on 16 August 2026 and the last date to declare is 31 December 2026.
- There are two routes: a flat ₹1 lakh fee for unreported but clean assets (up to ₹5 crore), and 30% tax plus an equal penalty for undisclosed assets and income (up to ₹1 crore).
- Assets are valued as on 31 March 2026.
- A valid declaration gives immunity from further tax, penalty and prosecution under the Black Money Act, 2015, for what is declared.
- On 26 October 2026, the Income Tax Department was reported to be writing to select taxpayers with undeclared property in the UAE. About 1,100 declarations had been filed.
What is FAST-DS 2026?
Taxpayers who are resident and ordinarily resident in India must report their foreign assets in Schedule FA of the income tax return every year, whether or not those assets produce any income that is taxable in India. Many people do not: a bank account left open after a degree abroad, shares vested by a foreign employer, a flat bought in Dubai with savings. Under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, failing to report can lead to a penalty of ₹10 lakh for each year. Since 1 October 2024, that penalty does not apply where foreign assets other than immovable property total no more than ₹20 lakh, as Taxmann explains, but a flat or office abroad is never covered by that exemption. Undisclosed assets can be taxed at 30% with heavier penalties and prosecution on top.
FAST-DS gives what the government calls small taxpayers a limited chance to close that gap. The rules, forms and frequently asked questions were notified by the Central Board of Direct Taxes in Notification No. 114/2026 on 14 August 2026, and the scheme came into force on 16 August 2026, as All India Radio reported. No declaration can be filed after 31 December 2026.
Why is the tax department writing to UAE property owners?
On 26 October 2026, Business Today and IANS reported that the Income Tax Department had begun reaching out to select taxpayers who invested in residential and commercial property in the UAE, urging them to use the scheme. About 1,100 taxpayers had filed declarations by then.
The reports said that at a high-level review on 23 October 2026, the department decided to share the foreign asset information it already holds with the taxpayers concerned. Data received under the Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA) for 2022 to 2024 can be seen on the e-filing portal. The department also plans outreach through companies, educational institutions, professional bodies and industry associations, and has set up regional committees to answer questions.
The practical message: the department already sees a good part of what Indian residents hold abroad. A letter or email is not a demand notice, but it is a sign that the information is on file.
Who is eligible for FAST-DS?
According to the Vialto Partners summary of the rules, the scheme is for individuals who were resident in India when the foreign income arose or the asset was acquired. People who are now non-resident or not ordinarily resident can still use it for those earlier years. It cannot be used for income or assets that represent proceeds of crime where proceedings under the Prevention of Money Laundering Act, 2002 have been started or are pending, or for years already assessed under the Black Money Act.
The people most often affected are:
- Indian residents who bought a flat or office abroad, often in Dubai, and did not list it in Schedule FA.
- Employees of multinational groups who hold shares or restricted stock units of a foreign parent company.
- Former students and professionals who kept a bank account or pension open after returning to India.
- Non-resident Indians who moved back, became resident again, and did not start reporting what they hold abroad.
How much does it cost to declare?
| Route | What it covers | Ceiling (aggregate value) | Amount payable |
|---|---|---|---|
| Undisclosed assets or income | Foreign assets or income never reported and never taxed in India | ₹1 crore | 30% tax plus an equal amount: 60% in total |
| Undeclared assets | Assets bought from income already taxed in India, or acquired while non-resident, but left out of Schedule FA | ₹5 crore | A flat fee of ₹1 lakh |
Values are taken as on 31 March 2026, converted at the RBI reference rate for that date. Special rules apply to bank accounts and to assets already sold, so the value is not always today's balance. After the declaration, the department issues an order with the amount due. It must be paid within two months from the end of the month the order is received, or within a further two months with interest at 1% a month. Miss that and the benefit of the scheme is lost.
No refund is allowed for amounts paid under the scheme.
Which route applies to you?
This is where most of the value lies. Many families assume that an unreported asset means the 60% route. Often it does not. A Dubai flat bought with salary that was taxed in India, or bought during years when the owner lived and worked abroad, may be a reporting failure rather than hidden income. If the source can be documented, the ₹1 lakh route may be available, up to an aggregate value of ₹5 crore.
That makes the paperwork decisive: bank statements showing the remittance under the Liberalised Remittance Scheme, past returns showing the salary, proof of the years you were non-resident, and the purchase deed. Where the trail is incomplete, the choice between routes needs care, because a wrong declaration does not give the protection you are paying for.
What happens if you do nothing?
The scheme closes on 31 December 2026. After that, unreported foreign assets fall back under the Black Money Act, with its ₹10 lakh penalty for each year of non-reporting and, for undisclosed assets, tax at 30% with further penalties and the risk of prosecution, as Business Today set out. Since the department already holds CRS and FATCA data, the chance that an asset stays unseen is falling.
Whatever you decide, every foreign asset must be reported in Schedule FA from now on. FAST-DS fixes the past; it does not change the duty to report each year.
What to do before 31 December
- Log in to the e-filing portal and check the foreign asset information in your Annual Information Statement (AIS).
- List every asset abroad: bank and pension accounts, shares and RSUs, property, insurance policies and interests in companies or trusts.
- For each, trace the source of money and your residential status in the year it was bought.
- Value each asset as on 31 March 2026 under the scheme's rules.
- Decide the route with an adviser, file the declaration, and pay within the time allowed.
- Report the assets in Schedule FA in every future return, and check how the country where the asset sits taxes it.
This article is general information, not advice for your situation.
Author – Team Greenwolf
27 October, 2026 | 7 min read
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