FAST-DS 2026 Under Finance Act, 2026

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FAST-DS 2026 Under Finance Act, 2026

Schemes
FAST-DS 2026 Under Finance Act, 2026

The Central Board of Direct Taxes launches FAST-DS 2026 for small taxpayers, and the scheme comes into force on 16th August 2026. Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS) 2026 is a one-time voluntary disclosure scheme contained in the Finance Act, 2026, enabling eligible taxpayers to declare specified undisclosed or undeclared foreign assets or income on payment of a specified tax or fee.

FAST-DS 2026 (Finance Act, 2026):

Dimension Key Details
Launching authority The Central Board of Direct Taxes provides for launching FAST-DS 2026 for small taxpayers.
Legal backing FAST-DS 2026 is governed by a one-time voluntary disclosure scheme contained in the Finance Act, 2026.
Commencement FAST-DS 2026 has come into force on 16th August 2026.
Permitted declarations The scheme provides for eligible taxpayers to declare certain undisclosed foreign assets, undisclosed foreign income, or undeclared foreign assets, on payment of a specified tax or fee.
Declaration categories and thresholds The scheme comprises 2 categories of declarations: Category 1 covers an undisclosed foreign asset or foreign income not previously offered to tax, with aggregate value not exceeding ₹1 crore; Category 2 covers foreign assets already offered to tax or acquired when the taxpayer is a non-resident but not reported in the relevant tax-return schedule, with a threshold of ₹5 crore and a ₹1 lakh fee payable.
Benefit The scheme provides for immunity from tax, penalty, and prosecution under the Black Money Act.
Exclusions The scheme applies to neither PMLA-linked crime proceeds nor concluded Black Money Act assessments.
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Attempt Possible Qs

Q 1 / 2
With reference to FAST-DS 2026 declaration categories, consider the following statements:
1. Category 1 covers an undisclosed foreign asset or foreign income not previously offered to tax, subject to an aggregate value cap of ₹1 crore.
2. Category 2 covers foreign assets already offered to tax or acquired when the taxpayer was a non-resident but not reported in the relevant tax-return schedule, subject to a threshold of ₹5 crore.
3. Category 2 requires payment of a ₹1 lakh fee.
Which of the statements given above are correct?