FAST-DS 2026: If you hold an account in a foreign bank or possess assets such as shares or property abroad and have not disclosed these to the Income Tax Department, this news is particularly significant for you. The Central Government is providing a special opportunity for such taxpayers to declare their foreign assets or income. The Income Tax Department has launched ‘FAST-DS 2026’, which allows eligible individuals to disclose their foreign property or income, provided they meet specific conditions. This is a one-time opportunity.
What is FAST-DS 2026?
FAST-DS 2026 is a special scheme introduced by the Central Government. Its objective is to enable eligible individuals to declare foreign assets or income that were not previously reported in their income tax returns. The scheme covers two types of scenarios: first, foreign assets or income on which no tax has been paid; and second, foreign assets acquired using income that has already been taxed but which were inadvertently omitted from the taxpayer’s income tax returns.
Application Deadline
Under this scheme, the Income Tax Department requires that ‘Form 1’ be filed by 31 December 2026. The scheme came into effect on August 16, 2026. If you fall under the eligible category, you should gather the necessary documentation and submit details regarding your foreign assets as soon as possible.
What is the tax liability?
The scheme categorises participants into different groups. ‘Category A’ applies to foreign assets or income on which no tax has been paid. If the required tax has not been settled on your foreign assets or income, this category may apply. In such cases, the total value of the foreign assets or income must fall within a specified limit—specifically, a cap of ₹1 crore.
A 30% tax must be paid on the determined value. Consequently, the total cost could amount to as much as 60%. When paying tax under ‘Category B’, ensure that you disclose details regarding any foreign property; this category specifically applies to such assets.
How to apply for FAST-DS 2026?
Applications for FAST-DS 2026 can be submitted through the official Income Tax Department website.
First, visit the official website at https://www.incometax.gov.in/.
Log in to your account.
Click on the ‘e-Filing’ option.
Select ‘Income Tax Forms’.
Taxpayers should then choose ‘Form 1’.
Enter the required information and submit the form.
Once the application form is submitted, the Income Tax Department will provide the details of the required payment via ‘Form 2’. You must make the payment on time and file ‘Form 3’ to report the payment details. Once all necessary conditions are fulfilled, the Department will issue ‘Form 4’.