FAST-DS 2026 eligibility explained: Category A/B limits, the ₹1 crore and ₹5 crore thresholds, NRI, HUF, and company rules, with two worked ₹ examples.
You qualify for FAST-DS 2026 if you're a resident, or were a resident when the asset was acquired, with undisclosed foreign assets or income up to ₹1 crore under Category A, or up to ₹5 crore under Category B where tax was already paid but Schedule FA was missed. Individuals, HUFs, firms, and companies can all apply, but the window hasn't opened yet.
FAST-DS stands for the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026. It's a one-time, six-month amnesty window that lets small taxpayers declare foreign assets or foreign income they missed reporting, pay a fixed tax or fee, and walk away with immunity from penalty and prosecution.
Governing law: the scheme was introduced as Sections 114 to 128 of the Finance Bill, 2026, tabled in Lok Sabha on 1 February 2026. As passed, it now sits at Sections 130 to 144 of the Finance Act, 2026. It's a standalone scheme, not a chapter inside the Income-tax Act, 1961 or the Income-tax Act, 2025. That's why it can mop up non-disclosures from years assessed under the old 1961 Act, while also interacting directly with the Black Money (Undisclosed Foreign Income and Assets) Act, 2015. In fact, Section 141 of the scheme says pending assessments under the 1961 Act must take your declaration into account.
Here's the catch: the scheme exists in law, but the government hasn't notified a start date yet. Until that notification appears in the Official Gazette, you cannot file. Any declaration made before that date is invalid.
Don't skim this table. Most articles bury the entity rules inside an FAQ. Yours shouldn't have to dig for them.
Applies to | Does NOT apply to |
|---|---|
Resident individuals who missed disclosing foreign assets or income | Non-residents who never held Indian residency during the relevant period |
HUFs, firms, and companies with undisclosed foreign holdings | Large-scale offshore evaders and cases already under investigation or search |
Returning NRIs who were resident when the asset was acquired or the income was earned | Cases with pending criminal prosecution already started |
Salaried professionals with foreign ESOPs or RSUs never reported | Assets that cross the Category A/B thresholds |
Taxpayers who paid tax correctly but skipped Schedule FA (Category B) | Undisclosed foreign immovable property beyond scheme limits |
Here's a partial case worth knowing: if you're currently an NRI but were a resident in the year the asset was acquired or the income arose, you can still declare. The test looks at your residential status in that year, not today. Whether OCI cardholders who were never tax-resident in India can use the scheme isn't settled yet.
This is where most guides go vague. Here are the real numbers.
Category A: never disclosed, never taxed. Your foreign asset or income was neither reported nor taxed in India at all. Eligibility caps out at an aggregate undisclosed value of ₹1 crore. You pay 30% of the fair market value (or 30% of the undisclosed income) as tax, plus 30% more as an additional charge in place of penalty, for 60% total, as confirmed in the Union Budget 2026-27 direct tax highlights on PIB.
Category B: taxed, but Schedule FA missed. You genuinely paid tax on the foreign income in India, or the asset came from already-taxed money, but you forgot to declare the asset itself in Schedule FA. The eligibility ceiling here is higher: an aggregate asset value up to ₹5 crore, per the same PIB release. The payment here works as a flat compounding fee rather than a percentage of value. Several practitioners put this figure at ₹1 lakh, but CBDT hasn't notified the exact fee schedule or any slabs within Category B yet.
Category | What it covers | Eligibility limit | What you pay |
|---|---|---|---|
Category A | Never disclosed, never taxed | Up to ₹1 crore | 30% tax + 30% additional charge = 60% |
Category B | Taxed, only Schedule FA missed | Up to ₹5 crore | Flat compounding fee |
Compare that to doing nothing. The Black Money Act charges 30% tax plus a 90% penalty (three times the tax), for 120% of the asset's value, with prosecution risk on top. FAST-DS 2026 roughly halves that exposure for Category A cases, and Category B turns an open-ended, per-year penalty into one closed payment.
There's a related relief too. The Finance Bill also proposes that prosecution won't apply where undisclosed foreign movable assets (excluding immovable property) total under ₹20 lakh, even outside this window.
Example 1: the common case. Suresh worked in Germany for two years and earned ₹40 lakh in foreign salary that he never reported in any Indian ITR. He's a resident now. Since the income was never disclosed or taxed in India, he falls under Category A. His payment: 30% of ₹40 lakh (₹12 lakh tax) plus 30% of ₹40 lakh (₹12 lakh additional charge), which equals ₹24 lakh total. Without FAST-DS, he'd have faced 120% of ₹40 lakh, that's ₹48 lakh, plus prosecution risk.
Example 2: the edge case competitors skip. Priya paid full Indian tax on her US employer's RSUs every year and correctly reported the vesting income in Schedule OS. But her CA never filled in Schedule FA for the brokerage account holding those shares, now worth ₹2.3 crore. Priya's income was taxed properly; only the asset disclosure was missed. That puts her in Category B, and since she's under the ₹5 crore ceiling, she qualifies for the flat compounding fee instead of a percentage-of-value charge, even though her asset value is far higher than the Category A limit.
Since the filing form and portal haven't been notified yet, here's the formula you'll need once the window opens.
Category A: Tax payable = 30% × fair market value of the asset (or 30% × undisclosed income) + 30% × the same base. In short: FMV × 0.60 = total amount payable.
Category B: A flat compounding fee applies per declaration, regardless of asset value, as long as you stay within the ₹5 crore ceiling.
Before the window opens, use this prep list:
List every foreign asset: accounts, ESOPs or RSUs, brokerage holdings, property, and insurance with cash value.
Check your past ITRs. Was the income reported? Was Schedule FA completed?
Get the fair market value as of the valuation date the rules specify.
Sort each asset into Category A or B based on whether the income was ever taxed in India.
Watch the Income Tax e-Filing portal and the Official Gazette for the notification. Filing before that date is invalid.
Your assets straddle both categories. Some were never taxed, and others are just missing Schedule FA. You'll likely need separate declarations for each category rather than one combined filing.
You miss the six-month window. Once it closes, full Black Money Act exposure comes back: 120% liability plus prosecution risk. No extension is expected for this cycle.
You're unsure if you're "under investigation." The scheme excludes cases already flagged for search, survey, or prosecution. If you've received a departmental notice mentioning foreign assets, don't assume you're excluded automatically. Get a CA to check it against the rules before you decide.
PAN and proof of residential status for the relevant years
Bank statements or account opening documents for each foreign account
ESOP or RSU vesting statements, and Form 16 or Form 26AS showing tax already paid (for Category B claims)
Property deeds or purchase agreements for foreign immovable assets, where applicable
Prior years' ITRs and Schedule FA filings, or proof that none was filed, for Category A
FMV valuation as on the prescribed date, once notified
Digital copies are expected to be accepted, since the declaration is likely to be e-filed.
Staying outside the scheme means falling back on the Black Money Act, 2015. Under Sections 42 and 43, a resident who fails to report a foreign asset, or misreports one, faces a penalty of ₹10 lakh for that year, though this penalty doesn't apply if your total foreign movable assets are under ₹20 lakh. Sections 3 and 41 impose a flat 30% tax on the undisclosed asset value plus a penalty of three times that tax (90%), for 120% total exposure, with no deductions or set-offs allowed. Sections 49 and 50 carry criminal prosecution with possible imprisonment, though this is proposed to be relaxed where undisclosed movable foreign assets total under ₹20 lakh.
This hasn't been clarified in the Finance Act text or the PIB releases available so far. The scheme's language centres on residential status under Indian tax law, and OCI status alone doesn't establish tax residency. Wait for CBDT rules or a departmental FAQ before assuming coverage either way.
Resident individuals, HUFs, firms, and companies with foreign assets or income up to ₹1 crore (Category A, never disclosed) or up to ₹5 crore (Category B, taxed but Schedule FA missed) qualify, subject to exclusions for cases already under investigation.
It's the total value of your undisclosed foreign assets or income across all your holdings under Category A, not a per-asset limit. Cross the ₹1 crore mark in total, and you fall outside Category A's eligibility band entirely.
Yes, if you were resident in India during the year the asset was acquired or the foreign income arose, even if you're now classified as an NRI. The scheme looks at your status in the relevant year, not your current one.
HUFs, partnership firms, and companies are all covered, as long as the non-disclosure fits Category A or B limits. Most competitor articles bury this in an FAQ, but it shouldn't be, since it changes who should be reading this page at all.
Not necessarily. Category B exists precisely for cases where you paid tax correctly but missed Schedule FA. An earlier filing mistake on the disclosure side is often the reason you need the scheme, not a reason you're excluded from it.
Yes. Vested ESOPs and RSUs from foreign employers count as foreign financial assets, and both the underlying income and the holding itself can be regularised under the relevant category, based on whether tax was already paid.
FAST-DS 2026 is built exactly for this. It lets you regularise years of missed Schedule FA reporting in one declaration, rather than facing a separate penalty for every year you were non-compliant.
Not fixed yet. The scheme runs for six months from whichever date the Central Government notifies in the Official Gazette, and that notification hasn't happened as of this writing. Treat any specific closing date circulating online as unconfirmed until the Gazette notification appears.
File within the notified window, and you get 60% (Category A) or a flat fee (Category B) instead of the Black Money Act's 120% liability and prosecution risk. Miss the window, or fall outside eligibility, and the full Black Money Act provisions apply by default.
If you've got a foreign account, ESOP, or property you never reported, sort it into Category A or B today using the tables above. Don't wait for the notification to start figuring out your number. Toolisky's Form 67 foreign tax credit calculator can help you check what tax you've already paid on foreign income before you file under Category B. Track the actual commencement date only on the official Income Tax e-Filing portal.
For educational purposes only. Verify all figures at official sources before acting. Toolisky is not affiliated with any government body. Consult a qualified CA or legal professional before making compliance decisions. See toolisky.com/accuracy-and-limitations.
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