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FAST-DS 2026 explained in simple words: who qualifies, the ₹1 lakh flat fee vs 60% tax option, real status update, and penalties.
FAST-DS 2026 is a one-time, six-month window that lets small taxpayers come clean about undisclosed foreign assets or income and walk away with immunity from Black Money Act penalties. Right now, it's been announced but not yet switched on — so you can't file under it today. Here's exactly who it's for, what it will cost you, and what to do while you wait.
Say you searched "FAST-DS 2026 kya hai" — here's the plain-English answer. FAST-DS stands for Foreign Assets of Small Taxpayers Disclosure Scheme, 2026. It's a scheme under Chapter IV of the Income-tax Act, 2025 (Section 130 onward), brought in through the Finance Bill, 2026. It lets resident taxpayers with small, genuine gaps in their foreign asset reporting pay a reduced tax, or a flat fee, and get complete legal closure — no penalty, no prosecution — under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Think of it like a bridge. On one side sits a taxpayer with an old, half-forgotten foreign bank account or an ESOP grant nobody reported. On the other side is a clean slate, without a 120% tax bill hanging over their head.
This scheme sits entirely inside the Income-tax Act, 2025 — not the older 1961 Act — because Chapter IV was written straight into the new Act. Confused about which Act governs your regular ITR filing instead? That's a separate question, and our Income Tax Act 2025 vs 1961 guide walks through it section by section.
A few terms worth knowing before you go further:
Schedule FA — the part of your ITR where you list foreign assets.
Black Money Act (BMA) — the 2015 law that can tax undisclosed foreign assets at up to 120% of their value.
ROR — Resident and Ordinarily Resident. Only ROR taxpayers must fill Schedule FA.
RNOR — Resident but Not Ordinarily Resident. A transition status, usually lasting 2–3 years after you move back to India, where older foreign assets often don't need reporting yet.
Immunity — legal protection from penalty and prosecution once your declaration is filed and paid.
Here's something most articles won't tell you straight: a couple of sites claim the scheme was "notified by CBDT on February 1, 2026." That's simply wrong, and it matters — filing before the real start date makes your declaration invalid.
February 1 was Budget Day 2026. That's the day the scheme was announced. It is not the day it started. The Income Tax Department's own text of Section 130(2), viewable on the official Income Tax Department portal, says the scheme "shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint." No such notification has gone out yet.
As checked on 16 July 2026, the commencement notification still hasn't been issued. The six-month window hasn't started. Don't file anything under FAST-DS 2026 yet — bookmark this page instead, and we'll update it the day the Gazette notice actually lands.
Wondering about FAST-DS 2026 eligibility? Here's a quick breakdown.
Applies to | Does NOT apply to |
|---|---|
Resident individuals (ROR) with undisclosed foreign assets or income under the value caps below | Companies, LLPs, or partnership firms — this scheme is for individuals only |
Returning NRIs or OCIs who became ROR and missed reporting old foreign accounts | Anyone with proceeds of crime under the Prevention of Money Laundering Act, 2002 |
Salaried employees with unreported ESOPs, RSUs, or ESPPs from a foreign employer | Assessment years where Black Money Act proceedings are already closed |
Former students with dormant, low-balance foreign bank accounts | Large-scale, deliberate offshore tax evasion cases |
NRIs or RNORs at the time the asset was acquired, now residents in India | Anyone still within their RNOR window — you likely don't need this scheme yet for pre-return assets |
One thing to check first: if you moved back to India recently and you're still RNOR, assets you acquired before you became a resident usually don't need Schedule FA reporting at all. Confirm your residential status before you assume you need FAST-DS 2026.
This is where most articles stay vague. Here are the real numbers.
Category | Who it's for | Value cap | Amount payable |
|---|---|---|---|
Category A — never taxed, never disclosed | Foreign income or assets with no tax paid anywhere, never reported in India | Up to ₹1 crore (aggregate, as on 31 March 2026) | 30% tax + 30% additional charge = 60% of asset or income value |
Category B — taxed abroad or acquired as NRI, only Schedule FA missed | Assets bought from already-taxed money, or acquired while you were an NRI, just not shown in Schedule FA | Up to ₹5 crore (aggregate, as on 31 March 2026) | Flat ₹1,00,000, charged once per asset, for its first undisclosed year |
[VERIFY: exact section number within Chapter IV of the Income-tax Act, 2025, that prescribes these Category A and Category B rates — recheck at incometaxindia.gov.in/income-tax-act-202511 once implementing rules are notified]
A relief that sits outside FAST-DS 2026 entirely: non-immovable foreign assets — bank accounts, stocks, not property — with an aggregate value under ₹20 lakh get automatic immunity from prosecution, and this applies retrospectively from 1 October 2024. You don't need to apply for it. But it doesn't erase your reporting obligation, and it never covers immovable property.
The FEMA risk almost nobody talks about: FAST-DS 2026 immunity covers the Income-tax Act and the Black Money Act only. It does not cover FEMA violations. So if you sold RSUs and left the money sitting in a foreign brokerage account past the 180-day repatriation window, or your overseas investment structure breaks step-down subsidiary rules, that's a separate problem. You'll need RBI compounding or a late-submission fee to fix it. Don't assume FAST-DS 2026 clears everything — it doesn't.
FAST-DS 2026 vs your other options
Option | Tax or fee | What it covers | Still open? |
|---|---|---|---|
FAST-DS 2026 | 60% (Category A) or ₹1 lakh flat (Category B) | Income-tax Act + Black Money Act | Not yet — waiting on notification |
Standard Black Money Act route | 30% tax + 90% penalty = 120% | None — you carry full exposure | Always applies if you do nothing |
The 2015 Black Money Act window | 30% tax + 30% penalty = 60% | Same two Acts, one-time, closed already | Closed since September 2015 |
A regular updated income tax return | Slab tax + interest + extra tax, no BMA cover | Doesn't touch your Black Money Act exposure | Always open, time-limited each year |
Example 1 — the common case: Priya, an IT professional in Pune
Priya worked in Germany for two years and earned ₹40 lakh in foreign salary that never got reported in India. She paid no tax on it, anywhere.
This falls under Category A — never taxed, never disclosed.
Tax payable works out to 60% of ₹40,00,000, which is ₹24,00,000.
Compare that with standard Black Money Act exposure: 120% of ₹40 lakh is ₹48 lakh, plus the risk of prosecution.
Using FAST-DS 2026 saves her ₹24 lakh, and she gets full immunity on top of it.
Example 2 — the edge case: Ramesh and his dormant student account in Chennai
Ramesh studied in the UK seven years ago and left ₹6 lakh sitting in a UK bank account, earning small interest each year. He's a resident now and never reported the account in Schedule FA — though he did already pay UK tax on the interest.
This is Category B — the asset was acquired legitimately; only the Schedule FA entry was missed.
Amount payable: a flat ₹1,00,000, regardless of the ₹6 lakh balance, because Category B charges a fixed fee, not a percentage.
Had he stayed quiet and been caught later, the exposure could have run into lakhs per year. In Vinil Venugopal v. DDIT (2025), the ITAT upheld a ₹10 lakh penalty for a single missed Schedule FA entry, even though the income itself had been correctly declared.
Curious what tax applies to interest like Ramesh's, separate from the disclosure fee itself? Our foreign interest tax calculator works that out in a few seconds.
No portal exists yet, since the scheme hasn't been notified. But the Finance Bill already spells out how it will work once it opens:
You'll file a declaration electronically, in a prescribed form, once the window is live.
The tax authority will send you an order stating the amount payable, within one month of the end of the month you filed in.
You'll then get two months to pay whatever's due.
Miss that window, and interest kicks in at 1% per month, or part of a month.
Once you pay, you get immunity from further penalty and prosecution for that income or asset, going back to FY 2025-26 or any earlier year.
There's no refund if you overpay, and no scope to revise the assessment once it's made. Payment has to be made in full — no instalments allowed.
You filed a declaration, but the scheme still hasn't been notified. Your declaration won't count. Wait for the actual Gazette notification. Filing early doesn't hold your spot — it just wastes your time.
You're not sure whether you're Category A or Category B. Ask yourself one question: did you pay tax on this money anywhere, ever? If yes, and the asset was acquired legitimately, you're probably Category B, meaning the flat ₹1 lakh fee. If no tax was paid anywhere and nothing was ever reported, you're likely Category A, at 60% of value. Still unsure? Get a CA to look at your specific case before the window closes — getting your category wrong can make your declaration invalid.
You already received a tax notice under Section 148 or 143(2) before you disclosed. You can still file a declaration. The Assessing Officer has to factor it into any pending assessment. It won't help, though, if your assessment under the Black Money Act is already final — that door is shut once the order's closed.
Proof of the foreign asset — bank statements, brokerage statements, a property deed, or ESOP/RSU vesting records. Digital copies are fine.
Proof of tax already paid abroad, if you're claiming Category B — a foreign tax return, Form 16 equivalent, or a withholding certificate. Digital copies work here too.
Your PAN and prior ITR acknowledgments for the relevant years.
A fair market value (FMV) of the asset as on 31 March 2026, calculated the way the rules will prescribe once they're notified.
Don't have your old statements? Request them from your foreign bank or your former employer's payroll team now. Some archives take weeks to dig up, and you don't want to be scrambling once the six-month clock actually starts.
Skip the scheme, and the standard Black Money Act provisions apply in full — 30% tax, plus a penalty equal to three times that tax (90%), adding up to 120% of the asset's value. No deductions, no set-offs. Criminal prosecution, including imprisonment, is possible under Sections 49 and 50 of the Black Money Act, except where your non-immovable foreign assets stay under the ₹20 lakh automatic-immunity threshold mentioned earlier.
No. As of 16 July 2026, the Central Government hasn't issued the Gazette notification that Section 130(2) requires. A few sites claim a "February 1, 2026" notification — that's the Budget announcement, not the actual start date. The two are different events.
It's a one-time, six-month scheme that lets small taxpayers disclose undisclosed foreign assets or income and get immunity from Black Money Act penalties, by paying either 60% of value or a flat ₹1 lakh fee.
Only if you're currently a resident for tax purposes, or you were a resident when the income was earned or the asset was bought. NRIs who've never held Indian residency in the relevant years generally fall outside this scheme.
Usually not. Assets you acquired before becoming a resident are typically outside your Schedule FA obligation while you're RNOR. Check your exact residency dates before assuming either way — see our guide on RNOR status for NRIs returning to India.
Standard Black Money Act rules apply — up to 120% total liability, and possible prosecution — unless your case falls under the separate ₹20 lakh automatic relief for non-immovable assets.
No. It gives you immunity only under the Income-tax Act and the Black Money Act. FEMA problems, like late repatriation of sale proceeds, need to be handled separately, through RBI compounding or a late-fee filing.
Category A covers income or assets that were never taxed and never disclosed anywhere — you pay 60% of value. Category B covers assets bought with already-taxed money, or acquired during NRI status, where only the Schedule FA entry got missed — you pay a flat ₹1 lakh.
Yes, as long as your assessment isn't finalised yet. The Assessing Officer has to consider your declaration while wrapping up a pending case. It won't undo an assessment that's already closed, though.
No. Schedule FA reporting is required no matter the value — even a small dormant account technically needs to be reported. That's exactly why FAST-DS 2026 exists: so many cases like this are small and genuinely accidental.
If tax was already deducted or paid on the vesting income, but Schedule FA was never filled in, you're most likely Category B — a flat ₹1 lakh fee, regardless of how much the RSUs are worth, since the fee applies per asset for its first undisclosed year.
No. The scheme is explicit about this — there's no refund of tax or fee paid, and no scope to rectify or revise the resulting assessment later.
Don't file anything yet, because the scheme genuinely isn't open for declarations. Use this waiting period wisely instead. Build a full list of every foreign account, ESOP grant, and property you hold or once held, and start gathering the paperwork for each one now.
If a foreign pension account is part of your picture, run your numbers through our 401(k) and foreign retirement account tax calculator so you already know roughly which category you'll land in once the window opens. And keep an eye on the Income Tax Department's official Acts page for the notification itself — that's the only source that actually matters.
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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