Prelims: Current events of national and international relations | Economy
Why in news?
The Central Board of Direct Taxes (CBDT) recently notified the FAST-DS to help small taxpayers voluntarily disclose certain undisclosed foreign assets.
- Effective from – 16 August 2026.
- Declaration window – Up to 31 December 2026.
- Announced in – Union Budget 2026–27.
- The rules aimed particularly at small taxpayers, including:
- Students
- Young professionals
- Technology employees
- Relocated NRIs
- Key features – The taxpayers will pay a 30% tax on the value of the declared undisclosed foreign asset or income.
- plus an additional amount equal to the tax, effectively taking the levy to 60%.
- The fair market value of the assets will be determined as of March 31, 2026.
- Example
- Foreign bank account – ₹60 lakh
- Undisclosed foreign income – ₹20 lakh
- Total value – ₹80 lakh
- Tax payable at 60% = ₹48 lakh
2 categories of declarations under FAST-DS –
- For an undisclosed foreign asset or foreign income that was not previously offered to tax, the aggregate value must not exceed ₹1 crore.
- A second category covers foreign assets that were already offered to tax or acquired when the taxpayer was a non-resident but were not reported in tax-return schedule.
- The threshold for such declarations is ₹5 crore, with a ₹1 lakh fee payable.
- Benefits –
- Valid declarations provide immunity from further tax, penalties and prosecution under the Black Money Act, 2015.
- Declared income or investment in the disclosed asset will not be included again in total income under the Income-tax Act or Black Money Act.
Reference
The Hindu| FAST-DS Rules, 2026
