- India launched FAST-DS, a one-time scheme for disclosing undisclosed foreign assets and income in 2026
- Eligible taxpayers must declare assets by December 31, 2026, based on valuation as of March 31, 2026
- The scheme applies to resident taxpayers and sets thresholds of Rs 1 crore or Rs 5 crore for disclosure
India is strengthening the reporting and compliance framework around overseas assets and income, giving eligible taxpayers a one-time opportunity to disclose certain foreign assets and income that were not previously reported.
The initiative is called the Foreign Assets of Small Taxpayers-Disclosure Scheme, or FAST-DS. Introduced under the Finance Act, 2026, the scheme came into force on August 16, 2026, and the deadline for filing a declaration is December 31, 2026.
The objective is straightforward: Provide eligible taxpayers with an opportunity to bring specified foreign assets and income into the tax-compliance framework by making a declaration and paying the applicable tax or fee.
What is FAST-DS?
FAST-DS is a one-time voluntary disclosure scheme.
According to the Income Tax Department, eligible taxpayers can use the scheme to declare specified foreign income and assets that were either not taxed or not reported in their income-tax return, subject to the conditions laid down under the scheme. The government has also provided for immunity from further tax, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, subject to the scheme's conditions.
The scheme therefore provides a formal route for eligible taxpayers to regularise specified overseas assets and income.
Here's what HNIs need to know about the deadline:
- Opened: August 16, 2026
- Closes: December 31, 2026
- Valuation date: March 31, 2026
No declaration can be filed under the scheme after December 31, 2026.
What kind of overseas wealth is covered?
Foreign assets can take several forms. They can include overseas bank accounts, foreign financial investments, property and other assets, depending on the provisions applicable to the taxpayer.
Foreign income can also arise from investments, employment, businesses or property located outside India.
The Income Tax Department already requires applicable resident taxpayers to provide details of foreign assets and income through Schedule FA in their income-tax returns. The department says the schedule helps it assess cross-border holdings and income.
FAST-DS adds a specific opportunity for eligible taxpayers to disclose certain assets and income that were not previously reported.
Why is the valuation date important?
One of the important features of FAST-DS is its valuation framework. The scheme specifies March 31, 2026 as the valuation date. Foreign-currency assets are converted into Indian rupees using the applicable exchange rate on the valuation date, subject to the detailed rules.
This makes currency movements relevant for taxpayers holding assets denominated in dollars, pounds, euros or other foreign currencies.
For example, imagine an overseas asset whose value remains unchanged in US-dollar terms.
If the rupee weakens against the dollar, however, the same asset can have a higher value when expressed in rupees.
This is why taxpayers with overseas assets need to pay attention not only to the underlying asset but also to the valuation methodology prescribed under the scheme.
What are the thresholds?
FAST-DS has different provisions for different categories of eligible taxpayers and assets.
For one category, the aggregate value of specified undisclosed foreign assets and income is subject to a Rs 1 crore threshold. For another category involving certain foreign assets acquired from income that was already disclosed or assets acquired during a period when the taxpayer was non-resident, the relevant threshold is Rs 5 crore, subject to the conditions of the scheme.
For the first category, the scheme provides for tax at 30% along with an additional amount equal to the tax. This makes the effective amount payable 60% of the relevant declared value, subject to the detailed provisions.
For the second category, a Rs 1 lakh fee applies, again subject to the eligibility and conditions specified under the scheme.
The thresholds therefore need to be understood alongside the category into which a taxpayer falls.
Does this apply to every Indian citizen?
India's tax system uses rules relating to tax residency, income and the nature of the asset or income involved. The reporting requirements for foreign assets also have specific applicability.
The Income Tax Department says Schedule FA is applicable to resident taxpayers, with specified exceptions.
Therefore, having an overseas asset does not by itself mean that every person holding it falls into exactly the same tax category.
Taxpayers need to establish their residential status and examine the specific rules applicable to their income and assets.
What about Indians living abroad?
Indian citizens living overseas can have different tax obligations depending on their residential status and the source and nature of their income.
This is why citizenship and tax residency should not be treated as identical concepts.
A person obtaining another citizenship or living outside India does not automatically make every Indian tax obligation disappear.
The applicable tax rules depend on the person's residential status, the income involved, the location of the asset and other provisions of Indian law.
For people with substantial international investments or businesses, professional tax advice can therefore be important.
Why are foreign assets receiving greater attention?
The global economy has become increasingly interconnected. Indian entrepreneurs, professionals and investors can hold assets in multiple countries, while Indian businesses increasingly operate across international markets.
As a result, tax authorities around the world have placed greater emphasis on transparency and cross-border financial information.
India's foreign-asset reporting framework is part of this wider effort to ensure that taxpayers report relevant overseas income and assets correctly.
The Income Tax Department's Schedule FA, for example, is specifically designed to capture information about foreign assets and income for applicable taxpayers.
FAST-DS provides an additional opportunity for eligible taxpayers to voluntarily bring specified previously undisclosed foreign assets and income into compliance.
Where does global wealth fit into the picture?
The movement of wealthy individuals across countries has become a global phenomenon.
Research by Henley & Partners shows that wealthy individuals increasingly consider several factors when deciding where to live and invest, including tax, economic opportunity, policy environment, access and lifestyle. Its 2026 wealth-migration report describes a growing global competition among countries to attract internationally mobile wealth.
The UAE, for example, has emerged as a major destination for globally mobile wealth. The UAE government says the country does not levy personal income tax on individuals, although it has other taxes including VAT and corporate taxation.
For wealthy Indians, however, tax is only one consideration among many when evaluating international opportunities.
Business prospects, infrastructure, family requirements, education, investment opportunities and access to global markets can all influence decisions.
For wealthy Indians, international mobility increasingly extends beyond traditional destinations. Caribbean jurisdictions, once associated largely with wealthy investors from the UK and the US, are also attracting interest from internationally mobile Indian HNWIs seeking greater global mobility and diversification. St Kitts and Nevis and Dominica are among the Caribbean countries with established citizenship-by-investment programmes and have featured in discussions around global wealth mobility. For India's wealthy, such options can offer a combination of international access, investment diversification and alternative residency or citizenship pathways.
What does this mean for taxpayers?
For eligible taxpayers who have previously undisclosed foreign assets or income covered by FAST-DS, the current window provides an opportunity to examine their overseas holdings and determine whether they qualify for disclosure.
The important dates are:
- August 16, 2026: Scheme commenced
- March 31, 2026: Valuation date
- December 31, 2026: Last date for declaration
Taxpayers should also carefully distinguish between assets that were never reported, assets acquired from income that was already disclosed, and assets acquired during periods of non-residency, because different provisions may apply.
The larger picture
India's economy is becoming increasingly integrated with the global financial system. Indian companies operate internationally, Indian professionals work across borders, entrepreneurs invest in multiple markets and families may have financial interests in more than one country.
For the tax system, this makes accurate reporting of overseas income and assets increasingly important.
FAST-DS offers eligible taxpayers a defined window to disclose specified foreign assets and income and bring them within the prescribed compliance framework.
For taxpayers, the key takeaway is simple: Know your tax residency, what you own overseas, and what you have already reported.
For taxpayers with complex overseas holdings, the Income Tax Department's official FAST-DS guidance and professional tax advice can help determine the appropriate course of action.
