CBDT FAST-DS Scheme 2026: Foreign Assets of Small Taxpayers Disclosure Scheme, Schedule FA Regularization & Black Money Act Immunity

In recent years, the Income Tax Department's automatic exchange of financial information (AEOI/CRS) generated thousands of severe penalty notices under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. Many of these notices hit salaried tech professionals, multinational executives, and returning NRIs who had fully paid tax on foreign RSUs/ESOPs through employer TDS, but innocently omitted filling Schedule FA (Foreign Assets) in their annual ITR.

Under Section 43 of the Black Money Act, a mere clerical omission of foreign assets attracts an unyielding ₹10,00,000 penalty per assessment year, alongside potential prosecution. In response to widespread stakeholder representations, the Ministry of Finance enacted the FAST-DS (Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026) to provide a decisive, clean exit route.

The scheme establishes a bifurcated relief structure depending on whether the underlying income was previously offered to tax in India:

Upon valid declaration and remittance under the FAST-DS scheme, the designated tax authority issues a conclusive settlement certificate.

This certificate provides an irrevocable statutory shield: no penalty proceedings under Sections 41, 42, 43, or 45 of the Black Money Act can be initiated, and the assessee is granted total immunity from prosecution under Chapter V of the Act. Furthermore, information declared under FAST-DS cannot be used against the declarant in any collateral proceedings.

Declarations under the FAST-DS scheme are filed 100% electronically through the designated desk on the income tax e-filing portal (incometax.gov.in). The fair market value of the declared offshore equity shares, bank accounts, or mutual funds is evaluated as of March 31.

Payment of the requisite fee or tax must be deposited using Challan ITNS 289 under the designated FAST-DS Minor Head prior to final declaration submission.

Given the strict statutory deadline of December 31, 2026, eligible assessees should not wait until the final quarter. Foreign custodians (such as Morgan Stanley, Computershare, and Charles Schwab) typically take several weeks to furnish historical vesting statements, dividend tax credit slips, and account balance certificates.

ASGR and CO's direct tax team provides comprehensive assistance in reviewing overseas portfolio statements, verifying Category B eligibility, drafting accurate valuation computations, and completing portal submissions with flawless compliance.