Income Tax: Big news for taxpayers. The Income Tax Department has made Form 1 accessible on the e-Filing portal for taxpayers who wish to declare undisclosed foreign assets or foreign-sourced income under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026).
“Form 1 under the ‘Foreign Assets of Small Taxpayers Disclosure Scheme, 2026’ (FAST-DS 2026) is now ready for submission on the e-Filing portal,” the Income Tax Department announced in a post on X.
This scheme offers small taxpayers a limited-time chance to reveal undisclosed foreign assets or foreign-sourced income by paying the required tax or fee, in accordance with the conditions set forth in the scheme.
“With Form 1 now available, the compliance window under FAST-DS 2026 — the Foreign Assets of Small Taxpayers Disclosure Scheme — has transitioned from notification to action,” stated Aarjav Jain, Executive Director and NRI Tax Expert at Dinesh Aarjav & Associates, Chartered Accountants.
On August 15, 2026, the government announced the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 (FAST-DS Rules 2026) to implement the scheme. Alongside the rules, the government also released FAQs related to the scheme.
FAST-DS 2026: What tax or fee will be applicable? For undisclosed foreign assets or foreign-sourced income included in the scheme, taxpayers will incur a 30 percent tax plus an additional amount equal to the tax, leading to an effective rate of 60 percent.
For specific foreign assets that have already been taxed or were acquired while the taxpayer was a non-resident but not reported in the return, a fee of Rs 1 lakh applies, subject to the specified threshold.
When does the Rs 1 lakh fee come into play?
Under FAST-DS, the Rs 1 lakh fee is applicable when a taxpayer possesses a foreign asset that was:
• Acquired from income that has already been declared for tax under Indian law but was not reported in the corresponding income tax return; or
Acquired from income generated outside India during a time when the taxpayer was a non-resident, but the asset was not reported after the taxpayer later became a resident in India.
FAST-DS 2026: What is the valuation date?
The valuation date set by the scheme is March 31, 2026. Taxpayers must assess the value of their foreign assets or income based on the valuation framework outlined in the rules.
FAST-DS 2026: How to file Form 1 The declaration must be submitted electronically via Form 1 on the Income Tax Department’s e-Filing portal.
“Submitting Form 1 without first determining the category and gathering the necessary documentation is where many individuals will make mistakes,” Jain noted.
Taxpayers will need to provide supporting documents related to the acquisition of foreign assets or the generation of foreign-sourced income. Valuation reports must also be submitted where applicable.