Government rolls out foreign asset disclosure scheme for small taxpayers

The Revenue Tax Division on Saturday (August 15, 2026) notified a brand new voluntary disclosure scheme permitting small taxpayers to declare sure undisclosed overseas belongings and earnings by paying an efficient 60% tax, as the federal government seeks to carry abroad holdings into the tax internet with out exposing eligible taxpayers to additional penalties or prosecution.

The Overseas Property of Small Taxpayers-Disclosure Scheme (FAST-DS), introduced within the 2026-27 Funds, will take impact from Sunday (August 16, 2026), with on-line declarations open till December 31, 2026, the Central Board of Direct Taxes (CBDT) stated.

The scheme is aimed toward taxpayers equivalent to college students, younger professionals, expertise workers and relocated non-resident Indians who could have did not disclose eligible overseas belongings or earnings.

Below the foundations, taxpayers pays a 30% tax on the worth of the declared undisclosed overseas asset or earnings, plus an extra quantity equal to the tax, successfully taking the levy to 60%.

The truthful market worth of the belongings shall be decided as of March 31, 2026, the CBDT stated.

There are two classes of declarations beneath FAST-DS.

For an undisclosed overseas asset or overseas earnings that was not beforehand supplied to tax, the mixture worth should not exceed ₹1 crore.

A second class covers overseas belongings that have been already supplied to tax or acquired when the taxpayer was a non-resident however weren’t reported within the related tax-return schedule. The edge for such declarations is ₹5 crore, with a ₹1 lakh charge payable.

The CBDT stated the scheme is meant to allow eligible taxpayers to reveal “sure undisclosed overseas belongings, undisclosed overseas earnings, or undeclared overseas belongings” on fee of the required tax or charge.

For instance, the place an undisclosed overseas checking account is valued at ₹60 lakh and undisclosed overseas earnings quantities to ₹20 lakh, the overall tax payable can be ₹48 lakh, in response to an instance within the CBDT’s often requested questions.

Taxpayers making legitimate declarations will obtain immunity from any additional tax or penalty and from prosecution beneath the Black Cash (Undisclosed Overseas Revenue and Property) and Imposition of Tax Act, 2015, in respect of the belongings or earnings disclosed.

The declared earnings or the quantity invested within the disclosed asset will even not be included within the taxpayer’s complete earnings beneath the Revenue-tax Act, 1961 or the Black Cash Act, the CBDT stated.