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16 August 2026

Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS)

The FAST-DS is a specific government tax compliance scheme aimed at addressing issues related to undisclosed foreign assets and money laundering, which falls under the scope of fiscal governance and economic security.

1 min read 1 questions 2 prelims

Notes

  • The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) is a voluntary disclosure initiative for small taxpayers to declare undisclosed foreign assets and income.
  • The scheme is targeted at students, young professionals, technology employees, and relocated non-resident Indians.
  • Declarations can be made online until December 31.
  • Category 1: Undisclosed foreign assets or income not previously offered to tax, with an aggregate value threshold of up to ₹1 crore; tax rate is 60% (30% tax plus 30% additional amount).
  • Category 2: Foreign assets already offered to tax or acquired while a non-resident but not reported in the relevant tax-return schedule; threshold is ₹5 crore with a ₹1 lakh fee.
  • Fair market value of assets is to be determined as of March 31, 2026.
  • The scheme aims to bring overseas holdings into the tax net without exposing eligible individuals to further penalties or prosecution.

Questions

  1. Discuss the significance of voluntary disclosure schemes like the FAST-DS in enhancing tax compliance and broadening the tax base in India. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00

Prelims

  1. What is the effective tax rate applicable to undisclosed foreign assets or income under Category 1 of the FAST-DS?

  2. Which of the following is a target demographic for the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS)?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-16/foreign-assets-of-small-taxpayers-disclosure-scheme-fast-ds