Industry Odisha Bureau, Jul 1: As the Income Tax Return (ITR) filing deadline July 31 is approaching, and also the Government of India (GoI)’s FAST-DS 2026 scheme is running, an Indian taxpayer possessing any foreign assets or income source(s) from abroad must not fail at any cost to duly disclose it while filing the ITR, or else pay the heavy price of penalty to a tune of Rs 10 lakh as per India’s Income Tax (IT) laws.
Reportedly, “The Finance Bill, 2026 mentioned FAST-DS 2026- the Foreign Assets of Small Taxpayers-Disclosure Scheme 2026. This scheme was introduced through Clauses 114-128 of the Finance Bill, 2026 and gives a one-time, 6-month voluntary window for eligible taxpayers to disclose foreign assets or foreign income that was either never taxed or reported in the Income Tax Returns.”
“Upon a valid disclosure and payment of mentioned tax or fee, the taxpayer receives full statutory immunity from penalty and prosecution as per the Black Money Act (Undisclosed Foreign Income and Assets) Imposition of Tax Act, 2015. The immunity is automatic and not discretionary which is granted by operation of law once payment is done.”
“The scheme is specifically targeted at small and genuine cases, for instance inadvertent omissions, legacy non-disclosures and ESOP/RSU reporting gaps and does not apply to large-scale offshore tax evasion or any criminal proceedings.”
So far, the eligibility for ‘FAST-DS 2026’ is concerned: “Any person who ‘was’ or who ‘is’ a resident in India in the relevant period and satisfies the conditions of the scheme is eligible to make a declaration. This would also include a person who is currently a non-resident or not ordinarily resident (RNOR) but was a resident in India when the undisclosed foreign income or asset was acquired.”
There are following groups eligible as follows:
“Tech employees with ESOPs/ RSUs who did not report such assets in their ITR.”
“People who studied overseas and retained dormant or low balance foreign bank accounts post completing their studies.”
“Non-residents who returned to India with undisclosed foreign savings, investment accounts or insurance policies.”
“Personnel on overseas deputation who may have any foreign assets.”
“Any individual, who is currently residing outside India, but was once resident when the foreign income was acquired.”
“Any other person who was/is a resident for relevant period who filed report Schedule FA and Schedule FSI.”
Assets & Income to be disclosed:
“Foreign shares, ESOPs/ RSUs, overseas bank accounts, mutual funds, foreign real estate, trust, financial interest in any overseas entity held as beneficial owner, bonds, and ETFs.”
“Dividends from foreign stocks, interest from overseas bank accounts, rental income from foreign property, salary earned abroad that was not offered to tax in India.”
“The assets which are acquired during non-resident status or from income which is offered already to tax in India, but never disclosed in Schedule FA of the ITR, this is also the most common ESOP scenario.”
Consequences of non-disclosure:
“Penalty as per section 42 and 43 of Rs 10 Lakh per asset, per year of non-disclosure. (This would apply even if you have the asset as a beneficial owner).”
“Section 3 and Section 41 states 30% flat tax on undisclosed asset value, plus penalty equal to 3x that tax (=90% of value). Total outgo= 120% of asset value. No deductions or set-offs allowed.”
“Criminal prosecutions with potential imprisonment as mentioned under Section 49 and Section 50. As per Finance Bill 2026 prosecution will not apply where foreign movable assets (excluding immovable property) aggregate less than 20 lakh.”
