Note · 29 August 2026 · revised 1 October 2026
FAST-DS 2026: a one-time window to set right foreign assets left out of past returns
Many people hold something abroad that never made it into their income-tax return: RSUs from a foreign parent company, an old student bank account, a pension from years spent overseas. The Foreign Assets of Small Taxpayers–Disclosure Scheme, 2026 lets them declare it, pay a fixed amount and close the matter. The window shuts on 31 December 2026.
Where the scheme comes from
The scheme is in Chapter IV of the Finance Act, 2026. The Central Board of Direct Taxes notified the rules on 14 August 2026 as Notification No. 114/2026 (G.S.R. 732(E)), and declarations can be filed from 16 August 2026. CBDT has also issued FAQs. All of these are on the Income Tax Department portal.
Who it is for
Broadly, a person who was resident in India and did not report a foreign asset or foreign income, either because no return was filed or because the return left it out. A person who is a non-resident today can still use it if they were resident in the year the income arose or the asset was acquired.
Typical cases are employees with RSUs or ESPP shares in a foreign brokerage account, returning NRIs with foreign bank or pension accounts, and former students with dormant accounts abroad.
Two categories, two prices
A common example: an employee’s RSUs were taxed as salary when they vested, but the shares were never shown in Schedule FA. The shares fall in Category B and the fee is ₹1 lakh for all such assets together. Dividends or sale gains on those shares that were never offered to tax would fall in Category A.
Valuation has its own rules. For a foreign bank account, the value is the total of all deposits since the account was opened, not the closing balance, so full statements are needed.
From declaration to certificate
So a declaration filed in October 2026 should get its Form 2 by 30 November 2026, with payment due by 31 January 2027, or by 31 March 2027 with interest. Form 4 is the document that gives immunity; keep it safely.
What the certificate gives you, and what it does not
A valid declaration gives immunity from further tax, penalty and prosecution under the Black Money Act, 2015 for the assets and income declared. It does not cover FEMA. If the asset was acquired outside the overseas investment or remittance rules, that needs to be looked at separately. The scheme is also not available where proceedings under the money-laundering law are pending, or for a year whose Black Money Act assessment is already complete.
Once the past is closed, the foreign assets have to be reported in Schedule FA of every future return.
Should you use it?
That depends on what you hold, how it was funded, and whether another route, such as an updated return, suits your case better. It is a decision for tax advice on your own facts.
This note is general information and is not tax advice. Mukul Nimrani & Co. acts only on a written mandate, and reading this page does not start any work. If you have a question after reading the official material, you can reach us through Contact.