What happened: FAST-DS for declaring foreign assets and income by small taxpayers
The Income Tax Department notified FAST-DS (Foreign Assets of Small Taxpayers–Disclosure Scheme), a voluntary disclosure scheme that allows eligible smaller taxpayers to declare certain previously undisclosed foreign assets and foreign income. FAST-DS is intended to bring eligible overseas holdings into the tax net without exposing eligible participants to further penalties or prosecution, based on the notification details. FAST-DS takes effect from Sunday, and online declarations remain open until December 31.
Scheme economics and valuation rule
FAST-DS applies an effective 60% levy on the declared amount. The effective levy is structured as 30% tax on the value of the declared undisclosed foreign asset or foreign income.An additional amount equal to the tax, taking the total effective levy to 60%.Fair market value of the declared assets is to be determined as of March 31, 2026.
Who can use FAST-DS: targeted groups and declaration categories
FAST-DS is intended for eligible taxpayers who may not have disclosed eligible foreign assets or foreign income earlier. The notification details mention potential eligible groups such as students, young professionals, technology employees, and relocated NRIs (Non-Resident Indians).