FAST-DS 2026: Declaring Foreign Assets by 31 December 2026

If you hold US shares from an old employer's RSU plan, a bank account from your student years abroad, or a foreign insurance policy, and you never listed it in Schedule FA (the foreign assets schedule) of your ITR, the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026) is a one-time way to settle it. The window opened on 16 August 2026 and closes on 31 December 2026.

There are two routes, and the cost is very different:

• Assets bought from income that was already taxed in India, or earned while you were a non-resident, but not reported in your return: a flat fee of ₹1 lakh, if the assets are worth up to ₹5 crore in total.
• Foreign assets or income that were never taxed: tax at 30% plus an equal amount, so 60% of the value in effect, if the total is up to ₹1 crore.

A valid declaration with payment gives immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for what you declare.

Why this scheme exists

The Black Money Act charges a penalty of ₹10 lakh for failing to report a foreign asset in the return, even where the money behind it was fully taxed. Since 1 October 2024 that penalty doesn't apply where foreign assets other than immovable property total up to ₹20 lakh, and the Finance Bill, 2026 proposed the same threshold for prosecution (other Budget changes are in Budget 2026 for individuals). Above it, a forgotten RSU account can carry a penalty out of proportion to any tax lost.

The Budget memorandum lists the cases it had in mind: ESOPs and RSUs from foreign employment, dormant or low-value bank accounts of former students, savings and insurance policies of returning non-residents, and assets of people on overseas deputation. It also notes that information received from other countries under the Automatic Exchange of Information framework shows a large number of PAN holders not disclosing foreign financial assets. If you received a department email about foreign assets, read our post on NUDGE emails as well.

The two categories

The scheme is open to residents, and to non-residents who were resident in the year the income arose or the asset was acquired. You can declare for any past year up to FY 2025-26 (the previous year ending 31 March 2026), and several assets and years go into one declaration.

Worked example: RSUs (Category 2)

Rahul worked in Bengaluru for a US company from 2019 to 2024. His RSUs vested over those years; each vesting was taxed as salary and shown in his Form 16. He never filled Schedule FA. On 31 March 2026 the shares were worth ₹38,00,000.

The money behind the shares was taxed, so this is Category 2. He declares the shares, pays ₹1,00,000, and gets immunity under the Black Money Act for the past non-reporting. The ₹38 lakh is well under the ₹5 crore limit. From his next return, he lists the shares in Schedule FA every year.

Worked example: untaxed money (Category 1)

Sneha did design work for overseas clients in 2021-22 and kept the payments in a foreign brokerage account without declaring the income. The holdings were worth ₹9,00,000 on 31 March 2026.

That is 60% of the value. It is steep, but it buys immunity from the Black Money Act's own tax, penalty and prosecution for that asset.

How value is worked out

Value is taken as on 31 March 2026 under rule 3 of the scheme rules (CBDT Notification 114/2026, 14 August 2026):

• Listed shares and securities (including most RSUs): the higher of cost and the average of the day's high and low price on the valuation date.
• Bank accounts: the total of all deposits since the account was opened, with some exclusions, not the closing balance. For an old account this can be far larger than what's in it today, and it decides whether you stay under the limit.
• Unlisted shares, property, jewellery and art: the higher of cost and market value, usually backed by a valuer recognised in the country where the asset sits, or indexed cost where no valuation is done.
• Foreign currency is converted at the RBI reference rate on 31 March 2026, through US dollars for currencies the RBI doesn't quote.

A declared value within 20% of the value the tax authority works out doesn't make the declaration invalid, except for bank accounts.

The process and its deadlines

The scheme runs electronically, with four forms:

Declarations go to the Principal Director General of Income-tax (Systems). Two things to keep in mind: the amount paid is not refundable, and missing the payment window makes the declaration fail.

Who can't use it, and what it doesn't cover

• Assets or income linked to proceeds of crime with proceedings under the Prevention of Money-laundering Act, 2002.
• Years for which a Black Money Act assessment is already complete.
• Totals above ₹1 crore (Category 1) or ₹5 crore (Category 2).
• Declarations with false material particulars.

The immunity is under the Black Money Act. If you are concerned about other laws, such as FEMA, ask a CA before you declare. You also can't use a declaration to reopen or claim relief in a completed income-tax assessment.

Should you use it?

• Reporting gap only, assets above ₹20 lakh: Category 2's ₹1 lakh fee is small next to a ₹10 lakh penalty per default. This is the clearest case.
• Reporting gap only, assets well under ₹20 lakh: the penalty already doesn't apply. You may simply report the assets correctly from now on; a CA can confirm for your years.
• Untaxed foreign income: Category 1 costs 60%. Compare it, with a CA, against what an assessment under the Black Money Act would cost.
• Old foreign bank accounts: get statements from the account's opening before deciding, because the deposit-sum valuation can push you over a limit.

For FY 2025-26 itself, the cleaner fix where it applies is to report the asset in Schedule FA of your AY 2026-27 return when you file or revise it.

FAQ

What is the last date for FAST-DS 2026?

31 December 2026 for filing the declaration in Form 1. Payment follows the Form 2 order, within two months from the end of the month you receive it, or two more months with interest.

I paid tax on my RSUs through salary but didn't fill Schedule FA. Which category am I in?

Category 2, if the shares were bought from income already taxed in India and their value on 31 March 2026 is up to ₹5 crore. The amount payable is a ₹1 lakh fee.

Is the ₹1 lakh fee per asset?

The scheme sets it as one fee for the Category 2 declaration, and one declaration can cover several assets and years. Confirm the position for your facts against the CBDT FAQs or with a CA.

Can I get the amount back if I change my mind?

No. Amounts paid under the scheme are not refundable.

Does the new Income-tax Act affect this?

The scheme covers years up to FY 2025-26, which fall under the Income-tax Act, 1961. From Tax Year 2026-27, report foreign assets in your return under the Income-tax Act, 2025 every year to avoid the problem recurring. Our post on which Act applies to which year explains the split.

Sources

• Finance Bill, 2026: Chapter IV, The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (indiabudget.gov.in)
• Memorandum explaining the Finance Bill, 2026: FAST-DS 2026 and prosecution relief under the Black Money Act (indiabudget.gov.in)
• CBDT Notification No. 114/2026, G.S.R. 732(E), 14 August 2026: Foreign Assets of Small Taxpayers Disclosure Scheme Rules, 2026 (incometax.gov.in)