Taxpayers who wish to declare undisclosed foreign assets or foreign-sourced income under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026) can file Form 1, available on the e-filing portal of the Income Tax Department.
“Form 1 under the ‘Foreign Assets of Small Taxpayers Disclosure Scheme, 2026’ (FAST-DS 2026) is now available for filing on the e-Filing portal,” the Income Tax Department expressed in a post on X.
This scheme delivers small taxpayers a time-bound opportunity to report undisclosed foreign assets or foreign-sourced income by paying the tax or fee, subject to the conditions mentioned under the scheme.
With Form 1 now live, the compliance window for the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS 2026) has transitioned from notification to action.
On August 15, 2026, the government announced the Foreign Assets of Small Taxpayers Disclosure Scheme Rules, 2026 (FAST-DS Rules 2026) to implement the scheme. Along with the rules, the government also released frequently asked questions (FAQs) regarding the scheme.
FAST-DS 2026: Know the Applicable Tax and Fee
For foreign assets or foreign-sourced income that are not reported but fall under this scheme, taxpayers will incur a tax rate of 30 percent. In addition, they must pay an extra amount equal to the tax, resulting in a total effective tax rate of 60 percent.
For certain foreign assets that have already been subject to taxation or were acquired while the taxpayer was a non-resident but were not disclosed in the tax return, a fee of Rs 1 lakh will apply, subject to specific thresholds.
When Is the ₹1 Lakh Fee Applicable?
Under the FAST-DS program, a fee of Rs 1 lakh applies if a taxpayer possesses a foreign asset that was:
- Acquired from income already declared for tax under Indian law but not reported in the corresponding Income tax return
- Acquired from income earned outside India while the taxpayer was a non-resident, but the asset was not reported after the taxpayer became a resident in India
What Is the Applicable Valuation Date?
The valuation date established under this scheme is March 31, 2026. Taxpayers are required to assess the value of their foreign assets or income according to the valuation framework outlined in the rules.
What Is the Process for Filing Form 1 Under FAST-DS 2026?
This declaration is required to be submitted electronically via Form 1 on the e-filing portal of the income tax department.
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Most people get it wrong by filing Form 1 without first determining the correct category and gathering the necessary supporting documents.
Taxpayers will be required to furnish documents relevant to the acquisition of the foreign assets or the earning of foreign-sourced income. Valuation reports need to be provided wherever applicable.
