FAST-DS Scheme: Declare Foreign Assets by Dec 31, 2026

The Income Tax Department has introduced a new opportunity for you to declare undisclosed foreign assets or income. The Central Board of Direct Taxes (CBDT) launched the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) on August 14, 2026.

This scheme provides a limited window for eligible taxpayers to ensure their assets and valuations comply with existing rules. You must submit your declarations by December 31, 2026, with all assets valued as of March 31, 2026.

Understanding the Financial Implications

• For undisclosed foreign assets and income below ₹1 crore, you could face a 30% tax and a 100% penalty. This effectively means a 60% loss of the total value.
• If your assets are under ₹5 crore and were acquired while you were a non-resident or from previously taxed income, a flat fee of ₹1 lakh (or nil) might apply.

It’s crucial to understand your specific situation, as misclassifying your case can lead to serious legal consequences. Getting this right is key to avoiding complications.

How Foreign Assets Are Valued

The method for valuing your foreign assets depends on their type. The scheme outlines specific approaches to ensure accuracy.

• Gold, jewellery, artwork, and property are valued at the higher of their purchase cost or a market value assessed by a professional valuer.
• Listed shares are valued at the higher of their purchase cost or the prescribed stock-exchange value.
• For unlisted shares, a specific formula must be used for valuation.
• Foreign bank accounts are valued based on the cumulative deposits made since their opening, not just the closing balance.

Flexibility and Compliance Deadlines

The FAST-DS scheme does offer some flexibility in its valuation process. A 20% valuation variance will not invalidate your declaration, giving you a bit of a buffer.

Once an order is issued, you have two months to clear any pending payments. An additional two months are allowed at a 1% monthly interest rate before the benefits of the scheme lapse.

Accurately categorizing your assets, understanding tax laws, and applying the correct valuation concepts are essential steps for you. Seeking professional guidance is highly recommended to navigate these complexities and avoid legal and financial troubles.