The Income Tax Department has intensified efforts to encourage taxpayers holding undisclosed foreign assets and income to come forward under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS), a one-time initiative aimed at regularising overseas holdings, Finance Ministry sources said on Monday.
The department has recently contacted select taxpayers who have invested in residential and commercial properties in the United Arab Emirates (UAE), urging them to take advantage of the scheme before its December 31 deadline.
The initiative comes as tax authorities expand their use of information received from foreign jurisdictions to identify overseas assets that may not have been disclosed in Indian income tax returns.
New facility on tax portal
To assist taxpayers, the department has introduced a facility on its e-filing portal that allows individuals to view details of foreign assets reported against their Permanent Account Number (PAN) by overseas jurisdictions.
The information is received under the Automatic Exchange of Information (AEOI) framework, including the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
Taxpayers can currently access and download information for the years 2022, 2023 and 2024.
According to sources, the portal displays information received from jurisdictions participating in the CRS and FATCA arrangements. However, it does not include all information available with the tax authorities.
Data obtained through other multilateral arrangements has not been displayed because of confidentiality obligations and other risk considerations. The department also collects intelligence on foreign assets through additional channels.
At a high-level meeting held on October 23, officials decided that such information could also be shared with relevant taxpayers, wherever possible, to encourage voluntary declarations under FAST-DS.
Tax and penalty provisions
Under the scheme, eligible taxpayers can regularise undisclosed foreign assets by paying tax equivalent to 30 per cent of their fair market value, along with an equal amount as penalty.
The process is entirely online and operates on a self-declaration basis.
A valid declaration provides immunity from further assessment, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in respect of disclosures covered by the scheme.
The initiative is intended to provide eligible taxpayers with an opportunity to correct earlier non-disclosures while bringing foreign assets and income into the tax system.
The department has also made provisions for taxpayers whose overseas assets and income have already been accounted for but were not reported in the prescribed manner.
Such taxpayers can disclose the relevant holdings by paying a fee of Rs 1 lakh, thereby avoiding the annual penalty of Rs 10 lakh prescribed under the Black Money Act.
Outreach programmes planned
The Central Board of Direct Taxes (CBDT) has planned outreach programmes to increase awareness of the scheme and help eligible taxpayers understand the declaration process.
These programmes will involve corporate employers, educational institutions, professional organisations and industry associations.
The department intends to use these institutions to reach individuals who may have acquired overseas assets through employment, education, investment or other activities.
The CBDT has also constituted committees in each region under the respective Principal Chief Commissioner of Income Tax to address questions and concerns relating to the scheme.
The committees are expected to assist taxpayers in understanding the requirements and resolving difficulties they may encounter while filing declarations.
Around 1,100 applications received
According to Finance Ministry sources, approximately 1,100 taxpayers have submitted applications under FAST-DS so far.
The scheme will remain open until December 31, 2026, giving eligible individuals a limited period to declare previously undisclosed foreign assets and income.
The department's latest outreach, particularly to individuals holding properties in the UAE, reflects its efforts to encourage voluntary compliance using information already available through international tax information-sharing arrangements.
With the deadline approaching, authorities are seeking to increase participation through direct communication, improved access to foreign asset information and assistance with the disclosure process.
The initiative also highlights the growing role of international cooperation in identifying overseas financial holdings and ensuring compliance with India's tax disclosure requirements.