FAST-DS 2026: foreign-asset disclosure for small taxpayers
A one-time window to clean up foreign assets, and exactly what immunity it does and does not give
FAST-DS 2026 is a one-time, six-month window (introduced by the Finance Act 2026) for small taxpayers to regularise foreign income and assets. There are two categories: genuinely undisclosed assets up to Rs 1 crore are settled at an effective 60% (30% tax plus a 100% penalty), while a mere reporting lapse, NRI-period assets or already-taxed assets up to Rs 5 crore, costs a flat Rs 1,00,000. Declaring gives immunity under the Black Money Act for the declared items, but NOT under PMLA, Benami or FEMA. Confirm the exact clauses and dates against the CBDT notification.
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What FAST-DS 2026 is
It is a one-time disclosure scheme under the Finance Act 2026 giving small taxpayers a six-month window to regularise foreign income and assets up to the period ending 31 March 2026, covering no-return years, omitted years and escaped-assessment years. It is aimed at residents, and at NRIs or RNORs who were resident when the income arose or the asset was acquired. It covers the same universe of foreign assets as Schedule FA, bank and brokerage accounts, ESOPs and RSUs, shares, property, funds and trusts.
warningThis is forward-dated (Finance Act 2026). Confirm the exact clause numbers and window dates against the CBDT notification before acting.
The two categories and what you pay
Which category you fall into changes the cost dramatically.
FAST-DS 2026 categories
Category
Applies to
Cap
Cost
Category 1
Genuinely undisclosed foreign income/assets
Aggregate up to Rs 1 crore
60% effective (30% tax + 100% penalty)
Category 2
Reporting lapse only: NRI-period assets, or already-taxed-income assets
FMV up to Rs 5 crore
Flat Rs 1,00,000 fee, no tax/penalty
exampleRs 50 lakh genuinely undisclosed = Rs 30 lakh under Category 1. The same Rs 50 lakh that is simply an unreported NRI-period account = Rs 1 lakh flat under Category 2. The classification is everything.
What the immunity covers (and does not)
Paying and obtaining the e-compliance certificate gives immunity from Black Money Act tax, penalty and prosecution for the declared items, and the declared amount is excluded from total income. But the immunity is BMA-only. It does NOT shield you from the Prevention of Money Laundering Act, the Benami Property Act, or FEMA, so proceeds-of-crime, benami and foreign-exchange-breach risks persist. Completed BMA assessments are excluded, and Schedule FA reporting continues prospectively for future years; this scheme only looks backward.
Finance Act 2026, FAST-DS scheme (confirm clause numbers on the CBDT notification)
Black Money (Undisclosed Foreign Income and Assets) Act 2015
Income-tax Act Schedule FA (continues prospectively)
Frequently asked questions
Who is FAST-DS 2026 for?+
Small taxpayers with foreign income or assets to regularise: residents, and NRIs or RNORs who were resident when the income arose or the asset was acquired. It is especially relevant to returning NRIs and small foreign-asset holders who have an unreported overseas account, ESOPs, or property and want to come clean within the one-time window.
How much does it cost to disclose?+
It depends on the category. Genuinely undisclosed foreign income or assets up to Rs 1 crore are settled at an effective 60% (30% tax plus a 100% penalty). A mere reporting lapse, an NRI-period asset or an already-taxed asset up to Rs 5 crore, costs a flat Rs 1,00,000. Getting the classification right is what determines whether you pay lakhs or just Rs 1 lakh.
Does disclosing protect me completely?+
No. The immunity is for the Black Money Act only, tax, penalty and prosecution on the declared items, and the amount is excluded from total income. It does NOT give immunity under PMLA (money laundering), the Benami Act, or FEMA. So if the funds involve proceeds of crime, benami holdings or exchange-control breaches, those risks remain and need separate advice.
Is this confirmed?+
FAST-DS 2026 is introduced by the Finance Act 2026 and is forward-dated, so the exact clause numbers and the precise window dates should be confirmed against the CBDT notification before you act. The structure (two categories, the caps, and the Black-Money-Act-only immunity) is the framework to plan around, but verify the operative detail before filing.