India Launches Foreign Asset Disclosure Scheme for Small Taxpayers: Check Key Details

The government has rolled out a new scheme to help small taxpayers report their foreign assets and income. It is called the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026, or FAST-DS. It opened on August 16, 2026 and will stay open till December 31, 2026.

Reporting foreign assets can be tricky for many people. A student who studied abroad, a techie who worked overseas, or an NRI who moved back to India may forget to report a bank account or old stock plan. This can lead to heavy penalties under the Black Money Act, even if there was no bad intention. This new scheme tries to make things simple. It gives taxpayers a clear, one-time window to fix old mistakes.

It is important to know that this scheme is not meant to help people hide foreign assets. It is meant to help honest taxpayers come forward and correct genuine reporting gaps.

What Is the Foreign Asset Disclosure Scheme?

FAST-DS lets eligible taxpayers declare certain undisclosed foreign assets, undisclosed foreign income, or foreign assets that were not properly reported, by paying a fixed tax or fee.

This is different from a normal income tax return. A regular return is filed every year to report income. FAST-DS is a one-time declaration only for past gaps in foreign asset reporting.

The larger goal is to support voluntary tax compliance and make foreign asset disclosure simpler for people who missed reporting them earlier. 

Who Can Use the New Scheme?

The scheme is available to residents, non-residents, and resident but not ordinarily resident (RNOR) taxpayers, as long as they were resident in India in the year the income was earned or the asset was bought. 

What Foreign Assets Need to Be Disclosed?

Common assets that fall under this scheme include:

• Foreign bank accounts
• Shares and securities held abroad
• Foreign mutual funds or investments
• Immovable property located outside India
• Foreign insurance policies or financial interests
• Other specified overseas assets, including ESOPs and RSUs from foreign employers

What Foreign Income Needs to Be Reported?

Foreign income can include:

• Interest earned abroad
• Dividends from foreign shares
• Rental income from property overseas
• Capital gains from selling foreign assets
• Any other income earned outside India