FAST-DS 2026 is a one-time scheme for people who left foreign assets or income out of past Indian returns. You declare them, pay a fixed amount, and get immunity under the Black Money Act. Untaxed foreign income, or assets with no explained source, up to ₹1 crore cost 60% of their value. Assets bought with taxed money, or while you were non-resident, and left out of Schedule FA cost a flat ₹1 lakh, up to ₹5 crore. Form 1 must be filed by 31 December 2026.
If you are here because of the department's email, start with what to do after the FAST-DS email, which helps you decide whether you need the scheme at all.
Table of contents
- What is FAST-DS 2026?
- Who can use FAST-DS?
- Can NRIs and people who changed residency use FAST-DS?
- What does FAST-DS cost? The two categories
- How are foreign assets valued under FAST-DS?
- How to file: Forms 1 to 4 and payment
- What does a valid declaration give you?
- Is FAST-DS better than an updated return (ITR-U)?
- When FAST-DS may not be worth it
What is FAST-DS 2026?
FAST-DS stands for the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026. It is a separate law in the Finance Act, 2026, not part of the Income-tax Act.
| Item | Detail |
|---|---|
| Law | Chapter IV, sections 130 to 144 of the Finance Act, 2026 |
| Rules | FAST-DS Rules, 2026, CBDT Notification No. 114/2026, dated 14 August 2026 |
| Filing window | 16 August 2026 to 31 December 2026 |
| Valuation date | 31 March 2026 |
| Forms | Form 1 (declaration), Form 2 (order of amount payable), Form 3 (intimation of payment), Form 4 (certificate) |
| Payment | Challan ITNS 289 |
| Run by | Principal Director General or Director General of Income-tax (Systems), fully online |
| Relief under | Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 |
The dates, forms and administration come from CBDT's FAST-DS FAQs. The Budget announced a six-month window, but the scheme opened only on 16 August 2026, so the real filing window is about four and a half months.
Note: "Small" is set only by the value limits of ₹1 crore and ₹5 crore. There is no income or age test.
Who can use FAST-DS?
Anyone who was resident in India in the relevant year can declare, as long as one of three grounds applies (CBDT FAQ Q6 and Q9):
- No return was filed for that year.
- The asset or income was left out of a return filed before the scheme began.
- The asset or income escaped assessment.
Any past year can be covered, subject to the value limits. Two kinds of case are excluded: income or assets that are proceeds of crime where proceedings under the Prevention of Money Laundering Act, 2002 have started, and any year for which a Black Money Act assessment is already complete. A pending assessment does not stop you from declaring; the Assessing Officer must take the declaration into account (FAQ Q49 and Q50).
The Budget memorandum names the people the scheme was built for: employees with ESOPs or RSUs from foreign employment, former students with dormant or low-value bank accounts abroad, returning non-residents with savings or insurance policies abroad, and people sent on overseas deputation (Budget 2026 memorandum).
Can NRIs and people who changed residency use FAST-DS?
Yes, for the years they were resident. A person who is a non-resident or RNOR today can declare income or assets from a year in which they were resident, either the year the income arose or the year the asset was acquired (CBDT FAQ Q6 and Q7).
Form 1 asks for your residential status (resident, non-resident or RNOR) in the year each asset was acquired or each item of income was earned. If you claim non-resident status for any year you declare, you also give passport details (FAQ Q8).
Three points matter most for people who moved:
- Assets built up while you were abroad fall in the ₹1 lakh category if you left them out of Schedule FA after becoming resident. The Rules' own example is a foreign plot bought in 2015 from income earned abroad.
- RNOR years are generally not lapse years. The Black Money Act's Schedule FA prosecution provision applies to a resident other than not ordinarily resident, so the lapse usually starts in the first ROR year.
- Bank accounts abroad are valued differently. A salary account kept open after you return is valued at the sum of all deposits, which can be far higher than its balance (see the valuation section below).
To check which years you were ROR, see Resident vs RNOR vs non-resident.
What does FAST-DS cost? The two categories
FAST-DS has two rows, set out in a table in section 133. Row 1 is for foreign money that was never taxed and costs 60%. Row 2 is for taxed money, or money earned while non-resident, that was only left out of Schedule FA, and costs a flat ₹1 lakh.
| Row 1 | Row 2 | |
|---|---|---|
| What is declared | (a) An undisclosed asset located outside India, or (b) undisclosed foreign income not offered to tax | An asset outside India acquired from (a) income earned outside India while non-resident, not declared in the return's schedule after becoming resident, or (b) income already offered to tax, where the asset was not declared in the schedule |
| Value limit | Undisclosed asset value (as on 31 March 2026) plus undisclosed foreign income must not exceed ₹1 crore | Total value of assets must not exceed ₹5 crore |
| Amount payable | 30% tax plus an amount equal to that tax, so 60% in total | Flat ₹1 lakh |
| Over the limit | Not eligible at all | Not eligible at all |
| Form 1 option | Type 1 (undisclosed asset) or Type 2 (undisclosed foreign income) | Type 3 (acquired while non-resident) or Type 4 (from income already taxed) |
The table follows CBDT FAQ Q12 to Q20 and Form 1 Part B.
Two definitions decide which row you fall in (FAQ Q13 and Q14):
- Undisclosed asset located outside India: an asset, including a financial interest in an entity, held in your name or as beneficial owner, where you cannot explain its source or the explanation does not satisfy the Assessing Officer.
- Undisclosed foreign income: income from a source outside India that was chargeable to tax in India but was not offered to tax.
Note: Most people who bought foreign shares with salary that was already taxed in India, and only missed Schedule FA, fall in Row 2. Dividends, interest or gains on those shares that never reached the return are undisclosed foreign income and fall in Row 1.
Can one declaration use both rows?
Form 1 totals Row 1 and Row 2 separately in Parts C and D and adds them, which points to one declaration covering both, each with its own limit. No CBDT FAQ says so in terms, so confirm with your tax adviser before filing.
Examples from the Rules
The FAST-DS Rules include worked examples, which are the safest figures to rely on.
Example. Suppose you have an undisclosed foreign bank account worth ₹60 lakh and ₹20 lakh of undisclosed foreign income (Rule 4, Illustration 1).
| Item | Value | Tax (30%) | Additional amount (100% of tax) | Total payable |
|---|---|---|---|---|
| Undisclosed foreign bank account | ₹60 lakh | ₹18 lakh | ₹18 lakh | ₹36 lakh |
| Undisclosed foreign income | ₹20 lakh | ₹6 lakh | ₹6 lakh | ₹12 lakh |
| Total | ₹80 lakh | ₹24 lakh | ₹24 lakh | ₹48 lakh |
The result: ₹48 lakh is payable, because ₹80 lakh is within the ₹1 crore limit
The Rules also show where the limits bite:
| Rules illustration | Facts | Outcome |
|---|---|---|
| Rule 4, Illustration 2 | Foreign plot bought in 2015 from income earned abroad while non-resident, worth ₹3 crore, not in Schedule FA after becoming resident | Row 2, fee ₹1 lakh |
| Rule 4, Illustration 3 | Foreign mutual fund units bought from income taxed in India (₹2.5 crore) plus NYSE-listed shares (₹4 crore) | ₹6.5 crore is over ₹5 crore, so not eligible |
| Rule 5, Illustration 1 | Foreign property ₹90 lakh plus foreign income ₹30 lakh | ₹1.20 crore is over ₹1 crore, so not eligible |
| Rule 5, Illustration 2 | Foreign mutual fund ₹2 crore plus foreign shares ₹2.5 crore | Row 2, eligible |
Rule 4, Illustration 3 is the closest official case to a resident investing abroad: foreign funds and US-listed shares bought with taxed money and left out of Schedule FA. At ₹5 crore or less, that person would pay ₹1 lakh.
How are foreign assets valued under FAST-DS?
Every asset is valued as on 31 March 2026 at the higher of its cost and its market value. If no market valuation is done, indexed cost is used. A foreign bank account is the exception: it is valued at the sum of all deposits since it was opened, not its balance (FAST-DS Rules, rule 3).
| Asset | Value as on 31 March 2026 | Rule |
|---|---|---|
| Listed shares and ETFs (for example US-listed stocks) | Higher of cost and the average of the day's lowest and highest price on the exchange; if no trade that day, the nearest earlier trading day | 3(1)(c)(i) |
| Unlisted equity shares (for example unlisted employer stock) | Higher of cost and a book-value formula; indexed cost if not valued | 3(1)(c)(ii) |
| Foreign bank account | Sum of all deposits from opening to 31 March 2026, excluding re-deposits of money withdrawn from the same account | 3(1)(e) |
| Immovable property | Higher of cost and open-market price backed by a valuer recognised in that country; indexed cost if not valued | 3(1)(d) |
| Jewellery, bullion, art | Higher of cost and open-market price backed by a recognised valuer's report; indexed cost if not valued | 3(1)(a), 3(1)(b) |
| Insurance, pension and other assets | Higher of cost or amount invested and arm's-length open-market price; indexed cost if not valued | 3(1)(g) |
Three more rules apply across asset types:
- Assets sold before 31 March 2026 still count. An asset other than a bank account that was sold before the valuation date is valued at the higher of its cost and sale price (rule 3(2)).
- No double counting. Where money from one asset or a bank withdrawal bought another asset, the first asset's value is reduced by the amount reinvested (rule 3(3), FAQ Q34).
- Currency conversion. Currencies covered by RBI's reference rate convert at that rate on 31 March 2026. Other currencies go first to US dollars at the local central bank rate, then to rupees at the RBI reference rate (rules 3(4) and 3(5), FAQ Q35).
The bank account rule catches returning NRIs
A salary account abroad can have years of deposits behind a small balance. Under rule 3(1)(e), every fresh deposit since the account opened counts, so ten years of salary credits can push the value past ₹1 crore even if the account now holds a fraction of that. The Rules' own illustration values an account opened in 2010 at USD 4,900, the total of fresh deposits, not its closing balance.
Note: For assets other than bank accounts, a later difference in value does not make the declaration void on its own, as long as it is within 20% of the value you declared (rule 5(2), FAQ Q36). Bank accounts get no such cushion, so work the deposits out carefully.
How to file: Forms 1 to 4 and payment
The whole process is online. You file Form 1, the department replies with the amount in Form 2, you pay by challan ITNS 289 and report it in Form 3, and the department issues Form 4, which is your immunity certificate (FAST-DS Rules, rules 5 to 9).
- Form 1: your declaration, by 31 December 2026. File it on the e-filing portal under e-File, Income Tax Forms, File Income Tax Forms, Forms as per Other Acts. Verify it with a digital signature if your return needs one, otherwise by EVC. One Form 1 can cover several assets and items of income. It asks for your PAN, passport details if you claim non-resident status for any year, the type of asset or income, the year it was acquired or earned, your residential status in that year, proof of acquisition or income, and any valuation report. Part D works out the amount payable for you.
- Form 2: the department's order of the amount payable. Issued online within one month from the end of the month you filed Form 1 (FAQ Q40).
- Payment by challan ITNS 289. Due within two months from the end of the month you receive Form 2. Two more months are allowed at 1% simple interest a month or part of a month. You can pay in parts. Miss the four-month outer limit and the declaration is void, as if it was never made (FAQ Q41 to Q44).
- Form 3: your intimation of payment. File it online with the challan details (BSR code, date and serial number) within the payment period (FAQ Q45).
- Form 4: the department's certificate. Issued within one month from the end of the month you file Form 3. It states that the declaration is valid and grants immunity, with Forms 1 to 3 attached (FAQ Q46).
Paying on the portal
On the e-filing portal, go to e-Pay Tax, choose the Income-tax Act, 1961, then the "Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 [Challan No. ITNS 289]" tile. Assessment Year 2026-27 is pre-filled for every FAST-DS payment. Minor Head 116 is for non-corporate PANs. You need the Form 2 order before you pay (e-filing payment manual).
Note: The portal warns that ITNS 289 payments cannot be corrected or refunded, and a Row 2 fee cannot be more than ₹1,00,000. Check the amount against Form 2 before you pay.
How the payment deadline works
Example. Suppose an undisclosed foreign bank account is worth ₹80 lakh, so ₹48 lakh is payable, and the Form 2 order is passed on 22 September 2026 (Rule 7 Illustration).
| Paid on | Delay beyond 30 November 2026 | Interest (1% a month) | Total payable |
|---|---|---|---|
| 25 November 2026 | None | Nil | ₹48,00,000 |
| 17 December 2026 | 1 month or part | ₹48,000 | ₹48,48,000 |
| 23 January 2027 | 2 months or part | ₹96,000 | ₹48,96,000 |
| 5 February 2027 | Past the outer limit of 31 January 2027 | Not applicable | Scheme benefit lost |
The result: pay by 30 November 2026 to avoid interest; after 31 January 2027 the declaration is void
The Rules print the last two payment dates as January and February 2026; 2027 is clearly meant, since the outer limit is 31 January 2027 (rule 7).
A Form 1 filed on 31 December 2026 can have its payment window run into mid-2027, because Form 2 can arrive as late as the end of January 2027.
What does a valid declaration give you?
A valid declaration, paid in full, gives immunity from further tax, penalty and prosecution under the Black Money Act for the income or asset you declared, for FY 2025-26 and every earlier year (section 139).
| What you get or give up | Detail |
|---|---|
| Immunity | No further tax, penalty or prosecution under the Black Money Act for what you declared |
| Not taxed again | The declared income, or the investment in the declared asset, is not added to your total income under the Income-tax Act or the Black Money Act |
| No reopening | Past assessments are not rectified or revised, and no set-off or relief is allowed in any appeal for the declared income, asset or amount paid |
| No refund | Amounts paid are not refundable |
| Void if false | The declaration is invalid if any material detail is found false, or a scheme condition is broken (section 134) |
| Void if not paid | Not paid within the four-month outer limit means the declaration is treated as never made |
These consequences are set out in CBDT FAQ Q44 to Q48.
Can you claim credit for foreign tax already paid?
No. The scheme has no mechanism to credit tax already withheld abroad. Row 1 is a flat 60% of the value declared, and the scheme allows no set-off or relief for declared income (FAQ Q47). So the 25% US tax withheld on dividends you declare under Row 1 stays lost for those years.
Going forward, foreign tax on income you report normally can still be claimed, using Form 67 for FY 2025-26 and earlier, and Form 44 from Tax Year 2026-27.
What FAST-DS does not cover
- Other laws. Section 139 grants immunity only under the Black Money Act. It does not mention FEMA, the Prevention of Money Laundering Act or the Income-tax Act's own penalty provisions, so FAST-DS is not a general amnesty.
- Anything left out of Form 1. Immunity applies only to income or assets declared.
- FY 2026-27 onward. Immunity stops at the year ending 31 March 2026. Declared assets must be in Schedule FA, and their income taxed, from the next return onward.
- Excluded cases. Proceeds of crime under money laundering proceedings, and years with a completed Black Money Act assessment (FAQ Q50).
Is FAST-DS better than an updated return (ITR-U)?
It depends on the gap. ITR-U is often cheaper for small amounts of missed income in recent years, but it cannot fix a Schedule FA gap on its own and carries no express Black Money Act immunity. FAST-DS covers any past year, works when no extra tax is due, and gives immunity, but at a fixed price.
| FAST-DS | Updated return (ITR-U) | |
|---|---|---|
| Law | Chapter IV, Finance Act, 2026 | Section 139(8A) of the Income-tax Act, 1961 |
| Years it can fix | Any past year up to FY 2025-26 | Only years within 48 months from the end of the assessment year; filed now, FY 2021-22 onward |
| What it fixes | Undisclosed foreign assets and foreign income | Income left out of a return |
| Cost | 60% of value (Row 1) or ₹1 lakh (Row 2) | Tax and interest, plus 25% to 70% of that as additional tax |
| Works when no extra tax is due | Yes, through Row 2 | No; it cannot be filed if it lowers tax or raises a refund |
| Credit for foreign tax already paid | No | Yes, if Form 67 is filed with it |
| Black Money Act immunity | Yes, express (section 139) | No express immunity |
| Deadline | Form 1 by 31 December 2026 | 48 months from the end of the assessment year |
The ITR-U time limit and additional tax rates come from the Finance Act, 2025 (Budget 2025 memorandum). For the year-by-year ITR-U rates if you file before 31 March 2027, see the ITR-U table in what to do after the FAST-DS email.
The two routes can work together. Some people use ITR-U to report missed income for open years and FAST-DS Row 2 for the Schedule FA gap. Others use FAST-DS for years ITR-U can no longer reach, such as FY 2020-21 and earlier.
Note: An advisory email is not a notice, so getting the FAST-DS email does not by itself stop you from filing ITR-U. ITR-U is barred only in specific cases, such as after a search or survey, or once certain notices have been issued for that year.
When FAST-DS may not be worth it
FAST-DS is not the right fix for everyone who got the email.
- Your only gap is small assets. If you left out foreign assets other than property, worth ₹20 lakh or less in total, and have no missed income, the Black Money Act penalty and prosecution for that gap no longer apply from 1 October 2024. Reporting correctly from your next return may be enough. See the ₹20 lakh limit explained.
- Your missed income is small and recent. A few thousand rupees of dividends in a year that ITR-U can still reach often costs less through ITR-U, at the price of no express immunity.
- You are over the limits. Above ₹1 crore in Row 1 or ₹5 crore in Row 2, the scheme cannot be used at all.
- Nothing was left out. If every year you were ROR was reported correctly, there is nothing to declare.
For how this plays out for RSU holders and for old bank accounts, see fixing missed Schedule FA years and declaring old foreign bank accounts, PayPal and Wise balances.
About Paasa
Paasa is a global investing platform built for Indian and Asian investors. It gives anyone direct access to stocks, ETFs and UCITS funds on their home exchanges across the US, Canada, the UK, Germany, France, Switzerland, the Netherlands, South Korea, Japan, Hong Kong and Singapore.
- Valuation-ready statements: your holdings, cost and transaction history across every market sit in one account, which makes it simpler to work out values as on a fixed date such as 31 March 2026.
- Reporting that keeps you compliant going forward: once past gaps are fixed, the same statements give you the figures for Schedule FA and foreign income each year.
- A dedicated relationship manager: one point of contact to help you gather the documents your tax adviser needs.
