FAST-DS Scheme: 30% Tax and Penalty on Undisclosed Foreign Assets up to ₹1 Crore, Disclosure Window till Dec 31, 2026

The Income Tax Department is using data from international Automatic Exchange of Information (AEOI) to encourage disclosures under the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS). The scheme offers a window until December 31, 2026, for declaring undisclosed foreign assets, with tax and penalty rates of 30% each for assets up to ₹1 crore, and a flat ₹1 lakh fee for certain other cases. It provides immunity from the stringent Black Money Act.

• 🔍Data-Driven Nudge

  The Income Tax Department is using information received via AEOI from UAE and other countries to identify and contact taxpayers with undisclosed foreign assets.

• ⚖️Two-Tier Structure

  FAST-DS has two categories: Category 1 for undisclosed assets up to ₹1 crore (30% tax + 30% penalty) and Category 2 for certain assets up to ₹5 crore (flat ₹1 lakh fee).

• 🛡️Legal Immunity

  A valid declaration under FAST-DS provides immunity from assessment, penalty, and prosecution under the stringent Black Money Act, 2015.

Black Money Act, 2015

The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, is an Indian law that targets undisclosed income and assets held outside India. It imposes heavy tax and penalties, along with the risk of prosecution.

Common Reporting Standard (CRS)

An international standard for the automatic exchange of financial account information between tax authorities, developed by the OECD. Its goal is to combat tax evasion by increasing transparency.

Foreign Account Tax Compliance Act (FATCA)

A United States federal law requiring US persons, including those living abroad, to report their foreign financial accounts and foreign assets to the US Treasury. It also requires foreign financial institutions to report on their US clients.

• Data: FAST-DS disclosure deadline is December 31, 2026.
• Nodal Body: Income Tax Department, Ministry of Finance.
• Legal Point: Immunity is from the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

1. Q1Easy

   The FAST-DS scheme, aimed at disclosure of foreign assets, is implemented by which government department?

   • AIncome Tax Department
   • BSecurities and Exchange Board of India
   • CReserve Bank of India
   • DEnforcement Directorate
2. Q2Hard

   Consider the following statements regarding the FAST-DS scheme:

   1. 1.It provides immunity from prosecution under the Black Money Act, 2015 upon valid declaration.
   2. 2.The scheme applies only to undisclosed foreign assets located within the United Arab Emirates.
   3. 3.The deadline for making disclosures under this scheme is December 31, 2026.

   Which of the statements given above is/are correct?

   • AOnly 1
   • BOnly 2
   • CBoth 1 and 3
   • DAll three
3. Q3Medium

   According to the article, what is the total applicable tax and penalty rate for disclosing an undisclosed foreign asset valued at ₹50 lakh under the first category of FAST-DS?

   • AA flat fee of ₹1 lakh
   • B30% of the asset value
   • C100% of the asset value
   • D60% of the asset value
4. Q4Medium

   What is the primary objective of the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) as per the news article?

   • ATo replace the existing Income Tax Act with a new simplified law
   • BTo increase foreign direct investment into India from UAE
   • CTo facilitate the disclosure of undisclosed overseas assets and bring them into the tax net
   • DTo provide interest-free loans for purchasing property abroad

• Original26 October 2026 · Read story
• Merged26 October 2026 · Read story