Regulatory Update
Undisclosed foreign assets?
FAST-DS 2026 voluntary disclosure
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 to regularise their position and avoid penalties and prosecution under the Black Money Act, 2015.
Who Should Take Note?
As an associate of a US-based CPA firm with extensive international tax expertise, we are well-equipped to help navigate the complexities of cross-border taxation and ensure full compliance with both US and Indian tax laws. For Indian taxpayers who are Resident and Ordinarily Resident (ROR), holding any of the following foreign assets, this is a critical opportunity for you to ensure your tax compliance and avoid potential risks associated with non-disclosure.
- Overseas bank accounts
- Foreign investments (stocks, bonds, mutual funds)
- Property outside India
- Business interests abroad
- Foreign income (interest, dividends, capital gains, etc.)
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.
What Does The Scheme Offer?
Two layers of protection for eligible taxpayers.
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.
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.
How Seva Can Help You
End-to-end support for your FAST-DS 2026 disclosure.
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.
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 Enterprise LLP recommends consulting a qualified tax professional before taking any action.
Next Step
Disclose Offshore Assets Under FAST-DS 2026
Get a confidential review of your eligibility and next steps with our cross-border disclosure team.