New Delhi, 15 August (H.S.): The Central Government has launched the Foreign Asset Disclosure Scheme, 2026 (FAST-DS) for small taxpayers, allowing them to disclose undisclosed foreign income of up to Rs. 1 crore or foreign assets valued at up to Rs. 5 crore. The scheme will open on August 16 and remain available until December 31, 2026.

In a statement issued on Saturday, the Income Tax Department said the Central Board of Direct Taxes (CBDT) had notified the Foreign Asset Voluntary Disclosure Scheme, 2026 rules for small taxpayers. Declarations under the scheme can be filed until December 31, 2026. Taxpayers opting for the scheme will be required to pay tax at 30 per cent, along with an additional charge equivalent to the tax amount.

While notifying the rules, the CBDT said eligible taxpayers can disclose undisclosed foreign assets, undisclosed foreign income or foreign assets that were not reported in the relevant disclosure schedules. The applicable tax or fee will have to be paid on such declarations. The category of small taxpayers includes students, young professionals, technology-sector employees and non-resident Indians (NRIs).

According to the CBDT, the scheme will come into effect on August 16, with online declarations accepted until December 31, 2026. The fair market value of the assets being disclosed will be determined as on March 31, 2026. Taxpayers can disclose their foreign assets online through Form 1 during the specified period.

The scheme provides for two broad categories of declarations. The first covers undisclosed assets located outside India or undisclosed foreign income on which tax has not been paid. In such cases, the total value of the undisclosed assets must not exceed Rs. 1 crore.

The second category covers foreign assets on which tax has already been paid or assets acquired while the taxpayer was an NRI but not reported in the relevant section of the income tax return. A monetary ceiling of Rs. 5 crore has been prescribed for such declarations, along with a fee of Rs. 1 lakh.

The voluntary foreign asset disclosure scheme for small taxpayers, including students, young professionals, technology-sector employees and NRIs who have relocated abroad, was announced in the Union Budget for financial year 2026-27.

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Hindusthan Samachar / Jun Sarkar