The Indian Income Tax Department, under the Central Board of Direct Taxes (CBDT), is actively encouraging select taxpayers suspected of holding undeclared overseas properties, particularly in the United Arab Emirates (UAE), to take advantage of a new disclosure window.
This initiative falls under the government’s Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS). The move signifies a stepped-up effort by authorities to bring undisclosed foreign assets and income into the tax net.
Understanding the FAST-DS Scheme
Under the FAST-DS framework, eligible taxpayers are provided a one-time opportunity to regularize their foreign asset disclosures. This involves paying a tax equivalent to 30% of the fair market value of the relevant foreign assets, along with an equal amount as a penalty. The scheme is entirely online and self-declaratory.
A crucial benefit of a valid declaration under FAST-DS is the immunity it provides from further assessment, penalty, and prosecution under the stringent Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Additionally, the scheme offers a provision for taxpayers to disclose accounted foreign assets and income by paying a fee of Rs 1 lakh. This helps them circumvent the hefty penalty of Rs 10 lakh for each year, as prescribed under the Black Money Act.
Enhanced Scrutiny and Facilitation
The push to utilize FAST-DS follows a high-level meeting held on October 23, 2026, where it was decided that information available with the department would be shared with relevant taxpayers. This aims to assist them in availing the benefits of the scheme.
To further facilitate this, the Income Tax Department has established a dedicated facility on its e-filing portal. Taxpayers can now view and download information concerning foreign assets reported against their Permanent Account Numbers (PANs) by various foreign jurisdictions. This data is received under the Automatic Exchange of Information (AEOI) framework, which includes mechanisms like the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). Data for the years 2022-2024 is currently accessible on the portal.
However, it's important to note that the portal primarily displays information from signatories to the CRS/FATCA frameworks. The department also possesses intelligence gathered from other multilateral arrangements and sources, which may not be publicly displayed due to risk factors or non-disclosure commitments.
Outreach and Deadline
The CBDT is also planning extensive outreach programs. These initiatives will involve corporates, educational institutions, professional bodies, and industry associations to raise awareness about the scheme. Regional committees, operating under principal chief commissioners, have been formed to address any queries taxpayers might have.
As of the latest reports, approximately 1,100 taxpayers have already filed applications under FAST-DS. The scheme remains open for disclosures until December 31, 2026, providing a limited window for compliance.