Foreign Assets of Small Taxpayers Disclosure Scheme 2026 – Relief From Non Reporting of Foreign Income/Assets

Introductory

In Union Budget 2026, the Finance Minister has announced a welcome scheme called ‘Foreign Assets of Small Taxpayers Disclosure Scheme 2026’ (FAST – DS 2026). As the name suggests, this scheme is with regard to the disclosure of foreign assets of small taxpayers. This scheme will bring a needed relief to small taxpayers who have unknowingly missed reporting of their foreign assets in their ITRs in India.

In many cases, NRIs and OCIs returning to India disclose their foreign income but often fail to report their foreign assets. Or a resident, having foreign income or foreign assets or both fails to disclose the same in his ITR. Under the provisions of the Black Money Act, 2015, this is considered a violation of law and is punishable with penalty or prosecution or both.

Application of this scheme

Amnesty under this scheme has been provided under two categories. Hereunder, the given table provide information about categories of scheme, amount payable under respective category and condition. Under condition, it can be seen that scheme is valid for small taxpayers only as there is an upper limit of income/assets on which scheme is applicable.

Process For Applying Under FAST DS Amnesty Scheme

• Assessee shall make declaration in the manner prescribed in the scheme
• Once electronic verification of above declaration is done, the amount payable by the Assessee is informed within one month from the end of month in which declaration is made
• Assessee shall pay the above amount within two months from the end of month in which such order was received by him
• In case Assessee fails to pay the above amount, then the Assessee may pay such amount within further two months along with simple interest @1% for every month or part of the month
• An order certifying the above payment is received by the Assessee within one month from the end of month of receipt of such intimation

Non applicability of scheme

This scheme cannot be availed in respect of

• Income or assets which is directly or indirectly, proceeds of crime, in respect of which proceedings have been initiated or are pending under the Prevention of Money Laundering Act, 2002
• Income or assets relating to assessment year for which assessment proceedings have been completed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015

Effect of this declaration on pending assessment proceedings

In case, income or assets, in respect of which assessment proceedings are pending under the Income Tax Act, 1961 or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, are declared under this scheme, then the Assessing Officer shall take such declaration into account while finalising such assessment order.

Impact of opting this scheme

The income or value of asset declared in the scheme is not included in total income for the purpose of Income Tax Act, 1961 or the Black Money (Undisclosed Foreign Income and Assets). Hence, the scheme provides complete immunity from provisions of Black Money Act. However, missing this opportunity can lead to heavy penalties and prosecution.

Important Terms Under FAST DS 2026

‘Undisclosed asset located outside India’ is an asset

• including financial interest in any entity
• held by the Assessee in his name or in respect of which he is a beneficial owner
• Assessee has no explanation about source of investment in such asset or explanation given by him does not satisfy the Assessing Officer

‘Undisclosed Foreign Income’ means

• Total amount of income from a source located outside India
• This income was chargeable to tax in India but not offered to tax under Income Tax Act 1961

‘Value of asset’ is fair market value of the asset as on March 31, 2026 determined in such manner as may be prescribed.

Who can opt this amnesty scheme ?

Any person

• Who has failed to file ITR as per Sec 139 of the Income Tax Act 1961 or
• Who has failed to disclose such asset or income in his ITR before the commencement of this scheme or
• such income or asset has escaped assessment

Who can be benefitted most from FAST amnesty scheme ?

• A student who opened a bank account during his education outside India and could not report the same in ITR on returning back to India.
• Returning NRI, who is holding and maintaining foreign assets but missed reporting the same on attaining the ROR status in India
• An employee who has been allotted ESOPs /RSUs but missed to report the same in ITR inadvertently
• A resident in India who remitted funds abroad to set up a bank account, buying immovable property and/or do other investments, but missed reporting of same in India ITR.
• A resident who inherited foreign assets and missed reporting in ITR.

FAQs – Foreign Asset Amnesty Scheme – Relief for Small Tax Payers, Returning NRIs, Students, RSUs/ESOPs holders For Non-Reporting of Foreign Assets/Income in Their ITRs In India – Relief From Black Money Act Provisions & Penalties

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