FAST-DS 2026: Foreign Assets Disclosure Scheme for Indian Residents

The Finance Bill, 2026 mentioned FAST-DS 2026- the Foreign Assets of Small Taxpayers- Disclosure Scheme 2026. This scheme is a one time in 6 month amnesty window to regularise past non-disclosure, pay a structured tax or fee and receive complete statutory immunity from penalty and prosecution. 

 FAST-DS 2026 is introduced in the Union Budget, 2026. The commencement date has not yet been notified by the Central Government. Any declaration which is made before the official notification date would be invalid. 

What is the new FAST-DS 2026 scheme ?

The FAST-DS 2026 is a Foreign Assets of Small Taxpayers- Disclosure Scheme 2026. This was introduced through Clauses 114-128 of the Finance Bill, 2026 and gives a one-time, 6-month voluntary window for eligible taxpayers to disclose foreign assets or foreign income that was either never taxed or reported in the Income Tax Returns.

Upon a valid disclosure and payment of mentioned tax or fee, the taxpayer receives full statutory immunity from penalty and prosecution as per the Black Money Act (Undisclosed Foreign Income and Assets) Imposition of Tax Act, 2015. . The immunity is automatic and not discretionary which is granted by operation of law once payment is done.  

The scheme is specifically targeted at small and genuine cases, for instance inadvertent omissions, legacy non-disclosures and ESOP/RSU reporting gaps and does not apply to large-scale offshore tax evasion or any criminal proceedings. 

The scheme shall come into effect on such date as may be notified by the Central Government through the Official Gazette Declarations.

What is the eligibility for FAST-DS 2026 ?

Any person who ‘was’ or who ‘is’ a resident in India in the relevant period and satisfies the conditions of the scheme is eligible to make a declaration. This would also include a person who is currently a non-resident or not ordinarily resident (RNOR) but was a resident in India when the undisclosed foreign income or asset was acquired.

Perhaps, there are following groups eligible which are as follows.

1. Tech employees with ESOPs/ RSUs who did not report such assets in their ITR.
2. People who studied overseas and retained dormant or low balance foreign bank accounts post completing their studies. 
3. Non-residents who returned to India with undisclosed foreign savings, investment accounts or insurance policies. 
4. A Personnel on overseas deputation who may have a foreign assets.
5. Any individual  who is currently residing outside India, but were once residents when the foreign income was acquired. 
6. Any other person who was/is a resident for relevant period who filed report Schedule FA and Schedule FSI. 

What are the Assets and Income which can be disclosed ?

1. Foreign shares, ESOPs/ RSUs, overseas bank accounts, mutual funds, foreign real estate, trust, financial interest in any overseas entity held as beneficial owner, bonds, and ETFs. 
2. Dividends from foreign stocks, interest from overseas bank accounts, rental income from foreign property, salary earned abroad that was not offered to tax in India. 
3. The assets which are acquired during non-resident status or from income which is offered already to tax in India, but never disclosed in Schedule FA of the ITR, this is also the most common ESOP scenario. 

FAST-DS 2026; Categories and Penalty Structure.

The scheme has two distinct categories with distinct cost implications 

What are the consequences of Non-Disclosure ?

1. Penalty as per section 42 and 43 of rupees 10 Lakh per asset, per year of non-disclosure. This would apply even if you have the asset as a beneficial owner. 
2. Section 3 and section 41 states 30% flat tax on undisclosed asset value, plus penalty equal to 3x that tax (=90% of value). Total outgo= 120% of asset value. No deductions or set-offs allowed. 
3. Criminal prosecutions with potential imprisonment as mentioned under section 49 and section 50. As per Finance Bill 2026 prosecution will not apply where foreign movable assets (excluding immovable property) aggregate less than 20 Lakh. 

Which ITR Form should be Submitted for Foreign ESOP Disclosure?

The following forms can be used for Foreign ESOP Disclosure