India Tax Amnesty: Declare Foreign Accounts by Dec 31, 2026
By ThePip Desk
India offers a one-time tax amnesty (FAST-DS 2026) until Dec 31, 2026, for taxpayers to declare dormant foreign bank accounts and assets, avoiding Black Money Act penalties.
Indian taxpayers now have a critical, one-time opportunity to declare previously undeclared foreign assets and income, including dormant overseas bank accounts, through the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS).
This scheme, which became effective on August 16, 2026, provides a window until December 31, 2026, allowing individuals to gain immunity from the severe penalties stipulated by the Black Money Act for non-disclosure.
Understanding the Disclosure Need
Many Indians who have lived or worked abroad often maintain foreign bank accounts. These accounts, if not accurately reported in Schedule FA of Income Tax Return (ITR)-2 or ITR-3, can attract scrutiny from the tax department.
While the Income-tax Act does not impose a separate penalty for merely omitting a foreign asset from Schedule FA, the Black Money Act carries significant consequences.
Penalties and Waivers Explained
Section 43 of the Black Money Act specifies a substantial penalty of Rs 10 lakh for individuals who fail to furnish details or provide inaccurate particulars of a foreign asset.
However, this stringent penalty is waived if the aggregate value of the foreign assets in question does not exceed Rs 20 lakh.
Leveraging FAST-DS 2026
For taxpayers whose foreign assets surpass the Rs 20 lakh threshold but remain below Rs 5 crore, the FAST-DS offers a pathway to compliance. By paying a prescribed fee of Rs 1 lakh, these individuals can declare their assets and secure immunity.
Calculating the value of a foreign bank account under this scheme requires careful attention. It is determined by the aggregate deposits made into the account while the taxpayer was a resident, from its opening date up to March 31, 2026, necessitating a thorough review of historical bank statements.
Significantly, the scheme is accessible even to taxpayers who have already received notices concerning foreign assets. Declarations made under FAST-DS will be considered during ongoing assessment proceedings under either the Income-tax Act or the Black Money Act, as confirmed by the scheme’s FAQs.
The FAST-DS 2026 scheme stands as a crucial initiative, offering a structured and time-bound mechanism for Indian taxpayers to rectify past non-disclosures and achieve compliance with foreign asset reporting regulations.