FAST-DS 2026: Have an undisclosed foreign asset worth ₹1 crore? Know why disclosure could cost ₹60 lakh, here’s the math

The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, opens on August 16, giving eligible taxpayers a one-time window until December 31, 2026, to disclose certain undisclosed foreign assets and income.

For declarations falling under the scheme’s first category, the prescribed tax and additional amount can together amount to 60% of the value being disclosed. This means a taxpayer declaring an undisclosed foreign asset worth ₹1 crore could have a total liability of ₹60 lakh.

The scheme is aimed at smaller cases of foreign income and assets that were not disclosed or taxed. The government has said it is intended to facilitate voluntary compliance in cases such as foreign ESOPs or RSUs, dormant overseas bank accounts and assets held by returning non-residents.

How does a ₹1 crore foreign asset become a ₹60 lakh payment?

The calculation comes from Section 133 of the FAST-DS. For an undisclosed asset located outside India or undisclosed foreign income, the amount payable consists of 30% tax and an additional amount equal to 100% of the tax determined. The combined value of the undisclosed foreign asset and foreign income must not exceed ₹1 crore.

Consider a taxpayer with an undisclosed foreign asset valued at ₹1 crore as on March 31, 2026.

The calculation would be:

• Tax at 30%: ₹30 lakh
• Additional amount equal to 100% of the tax: ₹30 lakh
• Total payable: ₹60 lakh

Therefore, the effective payment is 60% of the amount disclosed.

Importantly, however, FAST-DS does not prescribe a 60% tax rate. The 60% figure is the combined effect of the 30% tax and the additional amount that is equal to the tax.

The same principle applies where the declaration relates to undisclosed foreign income. For example, ₹20 lakh of undisclosed foreign income would attract ₹6 lakh of tax and another ₹6 lakh as the additional amount, resulting in a total payment of ₹12 lakh.

The ₹1 crore figure also needs to be read carefully. It is an aggregate ceiling for the undisclosed foreign asset and undisclosed foreign income covered under this category.

What if the foreign asset was bought with already-taxed money?

This is where taxpayers need to distinguish between the two categories under FAST-DS.

The scheme also covers specified foreign assets that were acquired from foreign income when the taxpayer was non-resident or from income that had already been offered to tax in India, but which were not reported in the relevant schedule of the income-tax return.

Such cases are not treated in the same manner as an unexplained foreign asset or untaxed foreign income under the first category.

The second category has a higher threshold of ₹5 crore and provides for a ₹1 lakh fee, subject to the conditions of the scheme. This means a taxpayer should not simply take the value of an omitted foreign asset and apply the 60% calculation without first determining which FAST-DS category applies.

This distinction could be particularly relevant for people who worked abroad, returned to India with overseas savings or retained foreign bank accounts or investments after becoming Indian residents.

The scheme defines an undisclosed foreign asset as an overseas asset, including a financial interest in an entity, where the taxpayer has no explanation for the source of investment or the explanation is considered unsatisfactory. Undisclosed foreign income, meanwhile, refers to foreign-source income that was chargeable to tax in India but was not offered to tax.

What does the ₹1 crore FAST-DS limit actually mean for taxpayers?

For taxpayers who fall under the first category, the maximum aggregate value eligible for this treatment is ₹1 crore. The valuation of an undisclosed foreign asset is linked to its fair market value, with March 31, 2026 specified as the valuation date for the first category.

The scheme is available to persons who are or were Indian residents during the relevant period. This can include some people who are currently non-residents or resident but not ordinarily resident if they were residents when the foreign income arose or when the foreign asset was acquired.

A declaration can cover cases where a taxpayer failed to file a return, failed to disclose the relevant asset or income in a return already filed, or where the asset or income has escaped assessment within the specified provisions.