The Foreign Disclosure Scheme 2026 (FAST-DS), officially announced as the Foreign Assets of Small Taxpayers Disclosure Scheme in the Union Budget 2026, is set to roll out starting July 1, 2026, according to official sources reported by NDTV Profit. This compliance-focused initiative will provide a one-time, six-month window for resident Indians to voluntarily declare undisclosed foreign assets and income, offering immunity from stringent prosecution under the Black Money Act. The scheme window is expected to remain open until December 31, 2026, giving taxpayers sufficient time to compile their global financial records.
Unlike past compliance windows that targeted high-net-worth individuals and offshore accounts, FAST-DS aims to clean up past reporting lapses for middle-class and smaller taxpayers, as reported by NDTV Profit. The scheme specifically targets IT professionals holding foreign Employee Stock Ownership Plans (ESOPs), returning Non-Resident Indians (NRIs), and students who may have opened bank accounts or acquired minor assets while studying abroad. The Income-Tax Department is expected to encourage taxpayers to utilize this limited-period opportunity to regularize their overseas holdings.
The scheme categorizes declarations into two distinct buckets based on asset value and nature of non-compliance, according to NDTV Profit reports. Undisclosed foreign assets and income up to ₹1 crore are eligible under Category 1, which will attract a 60% levy on fair market value. Foreign asset reporting lapses involving assets up to ₹5 crore are covered under Category 2, where cases will attract a flat one-time fee of ₹1 lakh. This applies where income was disclosed and taxed in India, but foreign assets were not reported. Eligible declarants will receive relief from Black Money Act prosecution and related penalties.
The incentive for eligible declarants is the blanket relief from severe financial penalties and criminal prosecution tied to the Black Money Act, as reported by NDTV Profit. For many tech workers and returning expats, inadvertent omissions on Schedule FA (Foreign Assets) of their Indian Income Tax Returns have historically carried the threat of steep penalties. FAST-DS acts as a reset button for these taxpayers, providing a structured pathway to regularize their overseas holdings without facing the severe consequences of non-compliance under existing regulations.
