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Chapter IV, sections 130–144, Finance Act, 2026

Foreign Assets of Small Taxpayers — Disclosure Scheme, 2026

A one-time window to regularise a foreign bank account, an overseas property, unreported RSUs or ESOPs, or foreign income that never reached your return — and to walk away with statutory immunity under the Black Money Act, 2015. The window opened on 16 August 2026 and closes on 31 December 2026.

Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026, notified by CBDT vide G.S.R. 732(E) — Notification No. 114/2026 dated 14 August 2026. Read with the Income-tax Act, 1961 and the Income-tax Act, 2025 (applicable from tax year 2026-27), and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Check which route applies to you Request a confidential review
₹1 croreCeiling where the money was never taxed — Table Sl. No. 1
60%30% tax plus a further amount equal to that tax
₹5 croreCeiling where only the Schedule FA reporting failed — Table Sl. No. 2
₹1 lakhFlat fee under that second route
Start here

One scheme, two very different doors

Almost every question about FAST-DS resolves into a single test: was the money that funded the foreign asset ever brought to tax in India? If it was — or if you earned it abroad while you were a non-resident — then all that failed was the reporting, and the scheme treats it as a reporting default with a flat fee. If it was not, the asset itself is undisclosed, and the scheme charges tax and a matching penalty on its value.

Section 133 — Table, Sl. No. 1

The source was never taxed

60%30% tax on the value declared, plus a further amount equal to that tax
Ceiling: aggregate of the undisclosed foreign asset (valued at 31 March 2026) and the undisclosed foreign income must not exceed ₹1 crore.
  • An asset outside India, held in your own name or as beneficial owner, where you have no explanation for the source of investment, or the explanation is not accepted
  • Foreign-source income that was chargeable to tax in India but was never offered to tax
  • Includes a financial interest in any foreign entity
Section 133 — Table, Sl. No. 2

Only the reporting failed

₹1,00,000A flat fee, irrespective of the value of the asset within the ceiling
Ceiling: aggregate value of the assets located outside India must not exceed ₹5 crore.
  • An asset abroad bought out of income that was already offered to tax in India, but left out of the relevant schedule of the return
  • An asset abroad acquired from foreign income earned while you were a non-resident, and not reported in that schedule after you became resident
  • The classic case: RSUs, ESOPs or ESPP shares vested abroad, a retained overseas salary account, or an inherited foreign holding

The ceilings are absolute, not marginal

Cross the ceiling by a rupee and the door shuts entirely — there is no partial relief for the amount below the line. The Rules illustrate this: assets aggregating ₹4.5 crore qualify under the second route, while assets aggregating ₹6.5 crore do not qualify at all, and the taxpayer cannot use the scheme. The same logic applies to the ₹1 crore ceiling, where an aggregate of ₹1.20 crore is shown as ineligible.

Interactive tool 1 of 5

Route and eligibility finder

Four questions, drawn directly from sections 131 to 133 and Rule 5. Nothing you enter leaves your browser — the calculation runs entirely on this page.

Which route applies to you?

Answer as at the position on 31 March 2026, the valuation date under the Rules.

1. Residence 2. Nature of default 3. Value 4. Exclusions Result
Were you resident in India in the year the foreign income arose, or in the year the foreign asset was acquired?
Which of these best describes the money behind the asset, or the income itself?
What was the position with your return of income for that year?
Assets valued as on 31 March 2026 under Rule 3. Leave blank or enter 0 if this route does not apply to you.
Valued as on 31 March 2026. Leave blank or enter 0 if this route does not apply to you.
Do any of these apply to the income or asset you want to declare?
Have this reviewed by a CA

This tool applies the eligibility conditions in sections 131 to 133 and Rules 4 and 5 to what you entered. It is an aid to understanding, not an opinion on your case. Residential status across years, beneficial ownership, joint holdings and inherited assets each change the answer, and each needs to be examined on its own facts.

Who the scheme was written for

The omissions this window is designed to close

The government has pointed to students, young professionals, technology-sector employees and non-resident Indians who have since relocated. In practice these are the fact patterns we see most often across Delhi NCR.

Route 2 territory

RSUs, ESOPs and ESPP shares

Equity vested from a foreign parent, taxed as a perquisite in the salary already, and then never entered in the foreign asset schedule. The underlying income was taxed — the reporting is what failed.

Route 2 territory

The retained overseas salary account

An account opened during a posting abroad, funded entirely by foreign salary earned while non-resident, and quietly kept open after returning to India and becoming resident again.

Route 2 territory

Brokerage and mutual fund accounts abroad

Overseas investment platforms funded through the Liberalised Remittance Scheme out of taxed income, where the annual schedule reporting was missed or filled incompletely.

Route 1 territory

Foreign income never offered to tax

Consultancy fees, interest, dividend or rental income arising abroad that was chargeable to tax in India as a resident, and simply never entered any return.

Route 1 territory

Assets with an unexplained source

An overseas holding where the source of the investment cannot be explained, or where the explanation offered is not accepted by the Assessing Officer.

Worth checking

Inherited or jointly held foreign assets

Property or accounts abroad received on inheritance, or held jointly with a relative, where the beneficial ownership position was never worked through in the return.

Why this window has appeared now

India receives account-level financial information from more than a hundred jurisdictions under the automatic exchange of information framework. The department's compliance-and-awareness campaigns of recent years produced tens of thousands of revised and belated returns disclosing foreign assets. FAST-DS is the structured exit for eligible cases — before the same information surfaces as a notice rather than a declaration.

Interactive tool 2 of 5

Amount payable calculator

Rule 4 fixes the amount by reference to column (3) of the Table in section 133. This works it out, checks both ceilings, and shows the statutory workings.

What will the declaration cost?

Enter values as on 31 March 2026, computed under Rule 3.

Assets bought out of income already taxed in India, or acquired while non-resident.

The Rules' own illustration: an undisclosed foreign bank account of ₹60 lakh and undisclosed foreign income of ₹20 lakh aggregate to ₹80 lakh, within the ₹1 crore ceiling. Tax is 30% of ₹80 lakh, that is ₹24 lakh, and the further amount equal to that tax is ₹24 lakh — a total of ₹48 lakh. Form 1 expresses the same thing as 60% of the combined value.

Rule 3

How each class of asset is valued

Every value is taken as on 31 March 2026. The recurring pattern is higher of cost of acquisition and open market price on the valuation date — and where that market valuation is not carried out, the indexed cost of acquisition is deemed to be the fair market value.

Interactive tool 3 of 5 — Valuation method finder

Pick an asset class to see the method the Rules prescribe for it.

Assets transferred before the valuation date

Where an asset other than a bank account was transferred before 31 March 2026, its fair market value is the higher of the cost of acquisition and the sale price. If the transfer was without consideration or for inadequate consideration, it is the higher of cost of acquisition and the fair market value on the date of transfer.

Currency conversion

Every figure is reported in Indian rupees. Where the value is in a currency designated by the Reserve Bank of India under the Foreign Exchange Management (Deposit) Regulations, 2016, it converts at the RBI reference rate on the valuation date.

For any other currency, it first converts into US dollars at the rate specified by the central bank of the country where the asset is located — or by any other bank regulated there, if the central bank does not specify one — and the dollar figure then converts to rupees at the RBI reference rate on the valuation date.

The anti-double-counting rule — Rule 3(3)

Where a new asset was acquired out of the consideration from transferring an old asset, or out of a withdrawal from a bank account, the fair market value of the old asset or the account is reduced by the amount reinvested. Otherwise the same money would be counted twice and the ceiling would be breached artificially. The Rules give two worked examples.

Illustration 1 — property, account, property

House H1 bought abroad in 2014 for ₹20 lakh, sold in 2017 for ₹25 lakh, proceeds deposited into foreign bank account BA. In 2018, house H2 was bought for ₹30 lakh by withdrawing from BA. H2 is worth ₹50 lakh on the valuation date; BA computes to ₹70 lakh under Rule 3(1)(e).

FMV of H1higher of 20 and 25, less 25 invested in BA = Nil
FMV of BA70 less 30 invested in H2 = ₹40 lakh
FMV of H2higher of 30 and 50 = ₹50 lakh

Illustration 2 — income converted into an asset

Undisclosed foreign income of ₹70 lakh earned in 2022. An immovable property abroad was bought for ₹60 lakh in 2023 using that income. The property is not transferred before the valuation date and is worth ₹80 lakh on it.

Value of the income70 less 60 invested in the property = ₹10 lakh
FMV of the propertyhigher of 60 and 80 = ₹80 lakh

The 20% tolerance — Rule 5(2)

For an asset other than a bank account, if the Assessing Officer or another income-tax authority later determines a different fair market value during an assessment or enquiry, the declaration is not treated as invalid or void on the ground of misrepresentation, suppression of facts or false particulars merely because of that variance, so long as the variance does not exceed 20% of the value you declared. It is a tolerance for honest valuation difference — not a licence to under-declare, and it does not extend to bank accounts, where the value is an arithmetical sum of deposits.

Interactive tool 4 of 5

Foreign bank account value calculator

Under Rule 3(1)(e), the value of a foreign bank account is not its closing balance and not its peak balance. It is the sum of every deposit from the date the account was opened to 31 March 2026 — with one exclusion that matters enormously in practice.

Build the deposit ledger

Tick any deposit that was funded out of an earlier withdrawal from the same account. Those are excluded, so that recycled money is not counted twice.

Date of deposit
Amount
Funded from a withdrawal?
Use the RBI reference rate on the valuation date for a designated currency. For any other currency, convert to US dollars first at the local central bank's rate, then apply the RBI reference rate.

The Rules' illustration: an account opened in 2010 with deposits of $1,000, $500, $500, $500, $2,500 and $1,000 and withdrawals of $700, $400 and $500, where the withdrawals were later re-deposited, values at $4,900. If the same account had been declared earlier under Chapter VI of the Black Money Act, only the deposits from that date onward count, giving $3,100. Either figure is then converted to rupees as on 31 March 2026.

Rules 5 to 8

The four forms, and what happens between them

The entire process is electronic. The prescribed income-tax authority for the scheme is the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems).

Step one

Form 1

The declaration. Filed electronically with PAN, passport details where non-residence is claimed for any year, the type and nature of each asset or income, the relevant previous year, residential status in that year, the annexure detail, and uploads of acquisition evidence and valuation reports.

You file — on or before 31 December 2026
Step two

Form 2

The order determining the amount payable, with penalty or fee. Issued after electronic verification of the declaration, within one month from the end of the month in which the declaration was made.

The authority issues — within one month
Step three

Form 3

The intimation of payment, with proof of payment including any interest. Payment may be made in parts. Filed within the period allowed for payment.

You file — within the payment window
Step four

Form 4

The order certifying that the declaration and the payment are valid for the purposes of section 139, and recording the immunity. Issued within one month from the end of the month in which Form 3 was submitted. Forms 1, 2 and 3 are annexed to it.

The authority issues — and the matter closes
Interactive tool 5 of 5

Payment timeline and interest calculator

The payment clock is the part of this scheme that quietly destroys declarations. Miss the outer limit and the declaration is treated as void and deemed never to have been made — while everything disclosed in it is already on record.

When is my money due, and what does delay cost?

Enter the date of the Form 2 order and the amount it determines.

The two-month period runs from the end of the month in which the order is received; the outer four-month limit runs from the end of the month in which the order was passed.
The illustration given in Rule 7, on an amount payable of ₹48 lakh with the Form 2 order passed on 22 September 2026
Payment made onPositionInterestTotal payable
25 November 2026Within two months of 30 September 2026Nil₹48,00,000
17 December 2026One month or part beyond 30 November 20261% — ₹48,000₹48,48,000
23 January 2027Two months or part beyond 30 November 20262% — ₹96,000₹48,96,000
5 February 2027Beyond the outer limit of 31 January 2027—Benefit of the scheme lost

The gazette text of these last two illustrations prints the year as 2026; from the four-month outer limit computed in the same illustration — up to 31 January 2027 — the intended years are plainly 2027. The dates above are shown accordingly.

Sections 136 to 140

What a valid declaration buys, and what it costs

What you get

  • Immunity from the levy of any further tax or penalty under the Black Money Act, 2015 in respect of the income or asset declared
  • Immunity from prosecution for an offence under that Act in respect of what is declared
  • The declared income, and the amount invested in the declared asset, is not included in total income under the Income-tax Act, 1961 or the Black Money Act, 2015
  • Where assessment proceedings under either Act are pending on the declared income or asset, the Assessing Officer must take the declaration into account while finalising the assessment
  • Certification of all of this in a single Form 4 order, with Forms 1, 2 and 3 annexed

What you give up

  • No rectification or revision of any assessment already made under the Income-tax Act, 1961 or the Black Money Act, 2015, in respect of what is declared or what is paid
  • No set-off and no relief in any appeal, reference or other proceeding relating to such an assessment
  • No refund of the amount paid, in any circumstance
  • A declaration that fails on payment is void and deemed never made — but the facts disclosed in it are already before the department
  • The verification in Form 1 is solemn: misrepresentation or suppression of facts renders the declaration void

Where the scheme is simply not available

It does not apply to any income or asset that directly or indirectly represents proceeds of crime in respect of which proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002. It also does not apply to any income or asset relating to an assessment year for which assessment proceedings have already been completed under the Black Money Act, 2015. Form 1 requires you to certify that section 140 of the Finance Act, 2026 is not attracted — so this is not a box to tick without advice.

FAST-DS measured against the alternatives

RouteAvailable forCostProtection under the Black Money Act, 2015
FAST-DS 2026 Eligible foreign assets and foreign income within the ₹1 crore or ₹5 crore ceilings, declared by 31 December 2026 60% of value, or a flat fee of ₹1 lakh Immunity from further tax, penalty and prosecution in respect of what is declared
Updated return under section 139(8A) Correcting the income-tax return within the permitted period, subject to its own conditions Tax, interest and the additional income-tax prescribed for the year in question No immunity under the Black Money Act, 2015
Doing nothing — On detection: tax under the Black Money Act, 2015 at 30% on the value of the undisclosed foreign asset, with a penalty of three times that tax; a separate penalty for failure to disclose foreign assets in the return, subject to the statutory exemptions; prosecution provisions apply None

The comparison is indicative and the position under each alternative depends on the year, the asset and the facts. The penalty exemptions under the Black Money Act for smaller balances and for assets other than immovable property have their own thresholds and effective dates, and must be checked case by case.

Preparation

What Form 1 will ask you for

A single Form 1 can carry several assets and several types of asset or income — the relevant parts of the form and its annexure repeat as many times as required. Assembling the paperwork is usually the longest part of the exercise, which is why the December deadline is tighter than it looks.

Across the declaration

  • Name in full without abbreviation, complete address, and PAN
  • Passport number and uploaded passport details, if you claim to be a non-resident in any year covered by the declaration
  • For each item: the type of asset or income under column (2) of the Table in section 133, the relevant previous year of acquisition or of earning, and your residential status in that year
  • Documents evidencing acquisition of the asset or earning of the income
  • A valuation report wherever valuation was carried out — immovable property, jewellery, artistic work, unquoted shares and securities, or any other asset
  • A consolidated statement of assets or income, uploaded as an annexure

By asset class, in the annexure

  • Bank account: bank name and address, country, account holder names, account number, opening date, sum of all credits, and the Rule 3 value with a separate computation where it differs
  • Immovable property: nature, address, country, names under which held, date of acquisition, total and indexed cost, valuer's estimate
  • Jewellery: gold by purity and weight; diamonds of one carat or more by carat, cut, colour and clarity; smaller diamonds and other precious metals by value; country of purchase
  • Artistic work: nature, country, holding names, date and cost of acquisition, indexed cost, valuer's estimate
  • Shares and securities: issuer, number and type, the established securities market and its country for quoted holdings, cost and dates of acquisition, and the Rule 3 value
  • Any income: type of income, country where earned, and amount
Questions we are being asked

FAST-DS 2026 — frequently asked questions

Can a person who is presently a non-resident still make a declaration?

Yes. A non-resident, or a resident but not ordinarily resident under section 6(6) of the Income-tax Act, 1961, can declare provided he was resident in India either in the previous year to which the undisclosed foreign income under section 4 of the Black Money Act, 2015 relates, or in the previous year in which the asset located outside India was acquired. Form 1 asks you to state your residential status for that year, and requires passport details where non-residence is claimed.

On what grounds can a declaration be made?

Where you failed to furnish a return under section 139 of the Income-tax Act, 1961; or furnished a return before the scheme commenced but did not disclose the asset or income in it; or the asset or income has escaped assessment within the meaning of section 147.

Can a declaration be made for any previous year?

Yes. A declaration may be made for any previous year in respect of income or assets covered by the Table in section 133, subject to the monetary ceilings and the other conditions of the scheme.

What exactly is an "undisclosed asset located outside India"?

An asset located outside India, including a financial interest in any entity, held by you in your own name or in respect of which you are the beneficial owner, where you have no explanation about the source of investment, or the explanation given is, in the opinion of the Assessing Officer, unsatisfactory.

And "undisclosed foreign income"?

The total amount of income from a source located outside India which was chargeable to tax in India but was not offered to tax.

If my assets abroad are worth ₹6.5 crore under the second route, what can I do?

Nothing under this scheme. Where the aggregate value exceeds ₹5 crore, the case falls outside the Table in section 133 altogether and you are not eligible to declare. The Rules illustrate exactly this: a foreign mutual fund of ₹2.5 crore and quoted shares of ₹4 crore aggregate to ₹6.5 crore, and the assessee is not eligible.

Can I declare more than one asset in a single Form 1?

Yes. The relevant parts of Form 1 and its annexure repeat as many times as required for multiple assets or income items.

Do I have to attach supporting documents and valuation reports?

Yes. Form 1 requires you to upload documents evidencing acquisition of the asset or earning of the income, and a valuation report wherever valuation was carried out — for immovable property, jewellery, artistic work, unquoted shares and securities, or any other asset.

What if I cannot pay within the two-month period?

You are not automatically out. A further period of up to two months is allowed, with simple interest at 1% for every month or part of a month of delay computed on the amount due. But the outer limit is four months from the end of the month in which the Form 2 order was passed. Beyond that, the benefit of the scheme ceases to be available for that declaration, and under Form 2 the declaration is treated as void and deemed never to have been made.

Can the payment be made in instalments?

Payments under the scheme can be made in parts. Form 3 provides for part payment made on or before the initial due date, the outstanding amount thereafter, and the additional interest at 1% per month on that outstanding amount, subject to the maximum of two additional months.

Will my declaration be invalid if the department later values my asset differently?

For an asset other than a bank account, a variance not exceeding 20% of the fair market value declared will not, by itself, render the declaration invalid or void on the ground of misrepresentation, suppression of facts or furnishing of false particulars. That is Rule 5(2), and it is a tolerance for genuine valuation difference — it does not protect a deliberate understatement, and it does not extend to bank accounts.

If assessment proceedings are already pending for the relevant year, what happens?

Where proceedings under the Income-tax Act, 1961 or the Black Money Act, 2015 are pending in respect of the declared income or asset, the Assessing Officer is required to take the declaration into account while finalising the assessment order.

Can I claim rectification, revision or relief later on what I have declared?

No. In respect of the income or asset declared, or any amount paid, you cannot claim rectification or revision of any assessment already made under the Income-tax Act, 1961 or the Black Money Act, 2015, nor claim any set-off or relief in any appeal, reference or other proceeding relating to such assessment.

Which authority handles the declaration, and is any of this offline?

The income-tax authority for the purposes of the scheme is the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems). The entire process is online, with the declaration and undertaking furnished under digital signature where the return of income is required to be filed under digital signature, and otherwise through an electronic verification code.

How is my interest in a foreign partnership or LLP valued?

In three steps. The net assets of the firm, association of persons or LLP are determined as on the valuation date on the same A plus B minus L basis used for unquoted equity shares. The portion of net assets equal to the capital is allocated among partners or members in the ratio in which capital was contributed. The residue is allocated as the partnership or association agreement provides for distribution on dissolution — or, in the absence of such an agreement, in the profit-sharing ratio.

What is an "established securities market" for valuing quoted shares?

An exchange that is officially recognised and supervised by a governmental entity in the country where the market is located, and that has a meaningful annual value of shares traded — defined as an annual traded value exceeding one billion US dollars in each of the three calendar years immediately preceding the valuation date. A share is "quoted" only if it also has a meaningful volume of trading on an ongoing basis and is regularly quoted by dealers who actually buy from and sell to unrelated customers in the ordinary course of business.

How we can help

A declaration is a permanent record. It is worth getting right the first time.

Once Form 1 is filed, the facts are before the department for good, and rectification, revision and relief are all closed off in respect of what is declared. The work that matters happens before filing: establishing eligibility, fixing residential status year by year, valuing each asset under Rule 3 with defensible evidence, and testing the aggregate against the ceiling before you commit.

  • Eligibility and route assessment across all years and all assets, including beneficial ownership and joint holdings
  • Reconstruction of foreign bank account deposit histories under Rule 3(1)(e), with the withdrawal-redeposit exclusion applied
  • Fair market valuation under Rule 3, coordination with recognised overseas valuers, and currency conversion on the valuation date
  • Rule 3(3) tracing where one asset was funded out of another, so the same money is not counted twice against the ceiling
  • Preparation and electronic filing of Form 1 with the annexure and supporting uploads
  • Verification of the Form 2 order, payment scheduling within the statutory window, Form 3 intimation and follow-through to Form 4
  • Where the scheme does not fit, advice on the position under the Black Money Act, 2015 and on Schedule FA compliance going forward
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Request a confidential review

Tell us the shape of the position. We will come back on whether FAST-DS fits, and what the declaration would involve.

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