CBDT’s FAST-DS 2026 Scheme: Who Can Declare Foreign Assets & How to Apply?

The Central Board of Direct Taxes has just opened a one-time window that could matter a lot if you’re an NRI, a returning NRI, or someone who came back to India after years abroad. FAST-DS 2026 gives eligible taxpayers a one-time opportunity to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets by paying the specified tax or fee. A valid declaration and payment can provide immunity from further tax or penalty and prosecution under the Black Money Act, 2015, subject to the conditions of the scheme. The scheme became effective on 16 August 2026, and the window closes on 31 December 2026. For NRIs who’ve moved back to India, tech professionals holding foreign ESOPs, or anyone who studied abroad and still has a dormant foreign bank account, this scheme is directly relevant. In this guide, we’ll break down what FAST-DS 2026 actually is, who qualifies, what can be declared, the applicable fees, and exactly how to apply.

What Is FAST-DS 2026?

AST-DS stands for the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026. It is a one-time disclosure opportunity introduced under the Finance Act, 2026, allowing eligible taxpayers to declare certain undisclosed foreign assets or foreign income, subject to the conditions and payment requirements prescribed under the scheme.

In simple terms, the scheme provides a limited window for eligible taxpayers to disclose specified foreign assets or foreign income that was not properly disclosed earlier, including certain foreign assets acquired from already-taxed income or income earned during a period when the taxpayer was non-resident but not reported in the relevant Schedule of the income-tax return.

The scheme sits alongside the Black Money (Undisclosed Foreign Income and Assets) Act, 2015  a law that carries steep penalties and even prosecution for non-disclosure of foreign holdings. FAST-DS 2026 was first announced as part of Budget 2026, and it has now become operational, with the Income Tax Department issuing a detailed FAQ document to help taxpayers understand exactly how it works. If you moved back to India after years as an NRI and your residential status changed, this is precisely the kind of gap the scheme is designed to close.

FAST-DS 2026 Is Now Open: Key Dates & Highlights

Multiple news outlets have confirmed the scheme’s activation this week, with reports noting the declaration window opened for eligible taxpayers on 16 August, running until 31 December 2026. No declarations will be accepted after the deadline, so this really is a hard cut-off.

Who Can Declare Foreign Assets Under FAST-DS 2026?

This is the section that matters most, especially if you have any history of living or working abroad. Based on the CBDT’s own FAQ document, eligibility isn’t limited to people who are currently residents of India. It extends to:

• Resident taxpayers — anyone who is a tax resident of India in the relevant year the asset or income relates to.
• Current NRIs or RNORs who were residents earlier — the scheme also covers certain non-residents and RNOR taxpayers if they were residents of India in the year the undisclosed foreign income relates to, or in the year the foreign asset was acquired. 
• Returning NRIs — people who came back to India and are now Resident but Not Ordinarily Resident (RNOR) or fully Resident and Ordinarily Resident (ROR), and are sitting on old foreign accounts, investments, or insurance policies opened while they were abroad.
• Foreign ESOP/RSU holders — employees of multinational companies who received stock options or restricted stock units from an overseas parent company and never reported them.
• Former students with dormant foreign accounts — people who studied overseas, opened a local bank account, and simply forgot to close or report it after returning to India.
• Overseas-deputation employees — professionals sent abroad temporarily by an Indian employer who opened foreign accounts during their posting.

If you’re unsure whether you currently qualify as Resident, RNOR, or NRI, it’s worth working this out precisely before you file your residential status for each relevant financial year is the foundation this entire scheme is built on, and getting it wrong can affect which category you fall under.

What Foreign Assets or Income Can Be Declared?

The scheme groups eligible disclosures into three broad situations, all outlined clearly in the CBDT’s FAQs:

1. Undisclosed foreign income — income earned abroad that was never reported and never taxed in India.
2. Undisclosed foreign assets located outside India — assets that exist but were never mentioned in any tax filing.
3. Assets whose income was already taxed, but the asset itself was never reported — for example, you paid tax correctly, but forgot to fill in Schedule FA while you were an NRI or during your RNOR years.

In practical terms, this typically covers things like:

• Foreign bank accounts (including old salary accounts from a previous posting)
• Foreign shares and securities
• ESOPs and RSUs from an overseas employer
• Foreign life insurance or investment-linked policies
• Other qualifying overseas assets, such as overseas real estate or mutual fund holdings

If any of these apply to you and you also have unresolved questions about how PFIC rules or FBAR/FATCA reporting intersect with your India-side disclosures, it’s worth reviewing both sides together rather than treating them as separate problems.

What Are the FAST-DS 2026 Value Limits and Tax/Fees?

The scheme works on two separate tracks, depending on your situation:

According to reporting on the scheme’s FAQs, the combined value of undisclosed foreign assets located outside India and undisclosed foreign income, valued as on 31 March 2026, must not exceed ₹1 crore to qualify under Category A. Separately, for assets that were acquired from income already taxed or acquired during a non-resident period but simply missed in Schedule FA, taxpayers with assets up to ₹5 crore in this category can settle the matter by paying a flat fee of ₹1 lakh. If your foreign assets exceed these respective thresholds, you won’t be eligible to use this scheme for that portion.

This is also a good moment to check whether any of your foreign holdings connect back to income that should have been reported under India’s DTAA provisions since a missed Schedule FA entry sometimes goes hand-in-hand with a missed treaty claim.

How to Apply for FAST-DS 2026?

The process is entirely online. Here’s the step-by-step:

1. Step 1: Identify the eligible foreign asset or income. List out every foreign bank account, investment, ESOP, insurance policy, or income stream that wasn’t reported earlier.
2. Step 2: Check eligibility and the monetary threshold. Confirm whether your case falls under Category A (₹1 crore limit) or Category B (₹5 crore limit, ₹1 lakh flat fee).
3. Step 3: Determine the applicable value or fair market value. The valuation date fixed for this scheme is 31 March 2026 — this is the reference point for calculating asset value, regardless of when you’re actually filing.
4. Step 4: File the declaration in the prescribed form. Declarations must be filed electronically using Form 1.
5. Step 5: Complete electronic verification. Upload supporting documents and valuation reports where applicable, and verify the declaration online.
6. Step 6: Pay the amount communicated by the department. After reviewing your declaration, the income-tax authority will communicate the payable amount through Form 2.
7. Step 7: Receive confirmation after payment. Once the payment is made and processed, you receive confirmation, and the disclosed assets are covered under the scheme’s immunity.

What Benefits Do Taxpayers Get Under FAST-DS?

• Immunity from prosecution under the Black Money Act, 2015 for the specific assets and income you declare.
• Protection from further penalty proceedings on the disclosed items once the payment is made and accepted.
• A fixed, predictable cost instead of the open-ended risk of penalty and prosecution if the department finds an undisclosed asset first through data-sharing channels.
• A clean compliance slate going forward, since the disclosed assets get formally recorded rather than sitting as an ongoing liability.
• A lower-cost route for genuinely small, forgotten holdings like a dormant student bank account  through the ₹1 lakh flat fee option under Category B.

Important Things NRIs Should Check Before Filing

• Confirm your residential status for each year the asset or income relates to — this decides which category and eligibility rule applies to you.
• Don’t assume every foreign asset qualifies — assets acquired while you were genuinely non-resident, and never brought back to India, may not need disclosure at all depending on the facts.
• Get the valuation right — since 31 March 2026 is the fixed valuation date, use proper conversion rates and, where required, a valuation report.
• Check your existing ITR history — if you’ve already reported the income but missed Schedule FA, you likely fall under the lower-cost Category B rather than Category A.
• Watch out for joint accounts and signing authority — if you’re a joint holder or signatory on a foreign account with a resident family member, that account may need separate attention even if the funds aren’t technically yours.

FAST-DS 2026 Deadline: 31 December 2026

The window is open right now, but it isn’t going to stay open for long. With the scheme active from 16 August 2026 and closing firmly on 31 December 2026, eligible taxpayers should assess their position well before the deadline rather than waiting until the final days. Valuation reports, supporting documents, and cross-checking old account records all take time — starting early gives you room to fix errors before the window shuts for good.

Conclusion

FAST-DS 2026 is a limited-time compliance window, not a permanent option — and for NRIs, RNORs, and returning NRIs, it’s worth taking seriously. Don’t assume that every foreign asset you’re sitting on automatically qualifies, and don’t assume every asset needs disclosure either. The right move is to check your residential status year by year, confirm where the asset or income came from, and get the valuation and reporting history straight before you file. Where the facts get complicated, joint accounts, ESOPs across multiple vesting years, or overlapping NRI and resident periods a professional tax review can save you from filing under the wrong category or missing the deadline altogether.