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Small taxpayers get window to declare foreign assets
The Hindu··17 Aug
The Income Tax Department opened FAST-DS from 16 August to 31 December 2026. Undisclosed foreign assets and income up to Rs 1 crore attract 30 percent tax plus an equal levy, a 60 percent outgo. Already-taxed foreign assets omitted from a return, up to Rs 5 crore, need a flat Rs 1 lakh fee. Filing is online only.
Prism
What It Means For You
- If you hold a foreign bank account, shares or property that never entered an Indian return, a one-time window runs from 16 August to 31 December 2026.
- Students, young professionals and relocated NRIs named in the Budget speech can use FAST-DS if they were resident in the year the income or asset arose.
- Anyone declaring up to Rs 1 crore of undisclosed foreign value pays 60 percent; already-taxed assets up to Rs 5 crore pay a flat Rs 1 lakh.
What's Happening
- CBDT operationalised the Foreign Assets of Small Taxpayers Disclosure Scheme from 16 August 2026, with the last date fixed as 31 December 2026.
- The valuation date for assets is 31 March 2026, and declarations are to be filed online.
- A valid declaration is stated to confer immunity from further tax, penalty and prosecution under the Black Money Act, 2015, for the income or asset declared.
Who Qualifies And How Assets Are Valued
- Finance Minister Nirmala Sitharaman announced the six-month scheme in the Union Budget for FY27 for small taxpayers with assets below a stated size.
- Rules prescribe different fair-market methods for bank accounts, securities, jewellery and immovable property, all to be reported in Indian rupees.
- India has said a person who did not file a return, or filed one but omitted the foreign asset or income, may still make a declaration if other conditions are met.
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