The Government of India has introduced a one-time opportunity through the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS 2026). This scheme allows taxpayers who have failed to disclose foreign income or assets in past returns toregularise their position and avoid penalties and prosecution under the Black Money Act, 2015.
As a U.S.-based CPA firm with extensive international tax expertise, we understand the complexities of cross-border taxation and the potential risks of non-compliance. If you are a Resident and Ordinarily Resident (ROR) taxpayer in India and hold any of the following foreign assets, this is a crucial opportunity for you:
- Overseas bank accounts
- Foreign investments (stocks, bonds, mutual funds)
- Property outside India
- Business interests abroad
- Foreign income (interest, dividends, capital gains, etc.)
What Does the Scheme Offer?
The scheme provides both financial relief and legal immunity for taxpayers who disclose their foreign assets within the given time.
A. Immunity Granted Under FAST-DS 2026:
- No penalty or prosecution under:
The Income-tax Act, or
The Black Money Act.
No reopening of disclosed income/assets.
Immunity is automatic and statutory, not discretionary.
B. Relief for Very Small Foreign Assets:
No prosecution for non-disclosure of foreign assets (except immovable property) valued under ₹20 lakh (retroactive from 1 October 2024).
Why Non-Disclosure Can Be Costly:
Penalties: Failure to disclose foreign assets can result in significant penalties and taxes.
Criminal Prosecution: Non-compliance may lead to prosecution under the Black Money Act.
Loss of Tax Treaty Benefits: Non-disclosure can impact your eligibility for tax treaty reliefs and lead to increased scrutiny under CRS/FATCA.
How Seva Can Help You:
✔ Residential status review — Determine your tax residency accurately.
✔ Foreign asset assessment — Identify and evaluate all overseas holdings.
✔ Compliance advisory — Strategise disclosure and tax impact.
✔ Filing support — Prepare and file returns or declarations professionally.
Contact us today to review your position and lawfully regularise your foreign asset disclosures.
Disclaimer:
This communication is for informational purposes only and based on the Finance Bill, 2026. It does not constitute legal or tax advice. The applicability of FAST-DS 2026 may vary based on individual circumstances. Seva LLP recommends consulting a qualified tax professional before taking any action.