India’s Income Tax Department is stepping up efforts to encourage eligible taxpayers to disclose overseas properties and other foreign assets that may not have been properly reported in their tax returns. The initiative comes ahead of the 31 December 2026 deadline under the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026, according to a report by LiveMint published on October 26.
The department has reportedly begun contacting selected taxpayers who own residential or commercial properties in the United Arab Emirates (UAE). Officials are also planning wider outreach to help taxpayers understand the scheme and identify foreign assets that may require disclosure.
The scheme offers eligible taxpayers a time-limited opportunity to regularise certain past reporting omissions, subject to specific eligibility conditions, payment requirements and monetary limits. It does not mean every overseas asset qualifies for relief.
Why the Income Tax Department Is Contacting Taxpayers
The department receives information about foreign assets through international information-sharing arrangements, including the Automatic Exchange of Information (AEOI) framework, the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
According to the reports, taxpayers can use the income-tax e-filing portal to view and download information about certain foreign assets reported against their Permanent Account Numbers (PANs) for calendar years 2022, 2023 and 2024. The information available through this facility is not necessarily a complete record of every foreign asset held by an individual.
The department reportedly decided to share additional information with relevant taxpayers wherever possible, helping them identify potential reporting gaps before the scheme’s deadline.
The Central Board of Direct Taxes (CBDT) has also planned awareness programmes involving companies, employers, educational institutions, professional bodies and industry associations. Regional committees have reportedly been established to address taxpayers’ questions.
What Is the FAST-DS 2026 Scheme?
The Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026, introduced under the Finance Act, 2026, provides eligible taxpayers with a one-time opportunity to regularise specified omissions involving foreign assets and income.
According to the published reports, the scheme covers different categories of declarations, each with its own conditions.
Category | Reported conditions |
|---|---|
Previously undisclosed foreign assets or income | Aggregate value up to ₹1 crore; tax at 30% of the applicable fair market value, plus an equal amount as penalty |
Eligible assets acquired while the taxpayer was a non-resident or using income already taxed in India | Aggregate value up to ₹5 crore; fixed fee of ₹1 lakh, subject to the scheme’s conditions |
Certain eligible, already-accounted-for foreign assets omitted from the required disclosure | A fee of ₹1 lakh may allow taxpayers to avoid the prescribed annual non-reporting penalty |
These provisions have different eligibility requirements. Taxpayers should not assume that paying a fee or submitting a declaration automatically qualifies every foreign property or asset for relief.
For the first category, the reported tax and penalty together amount to 60% of the applicable value. The scheme’s conditions and valuation rules should be checked carefully before any declaration is made.
What Happens If Overseas Assets Were Not Disclosed?
Indian tax residents may have reporting obligations concerning foreign assets and income, depending on their circumstances and the applicable provisions. Certain foreign holdings may need to be reported in the relevant schedules of an income-tax return even where the asset was acquired using income that had already been taxed.
Failure to comply with applicable foreign-asset reporting requirements can have consequences under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
The FAST-DS scheme is intended to provide eligible taxpayers with a time-limited route to address specified past omissions. According to the reports, a valid declaration and compliance with the relevant payment conditions can provide protection from further assessment, penalties and prosecution under the Act for matters covered by the scheme.
However, eligibility depends on the category of declaration, the origin of the funds used to acquire the asset, the asset’s value and other prescribed conditions. Professional review may be appropriate where ownership, inheritance, residency status or the source of funds is unclear.
How Taxpayers Can Review Foreign-Asset Information
Taxpayers who may hold overseas property or other foreign assets should review their records and compare them with the information available through official tax channels.
Important considerations include:
Check the e-filing portal: Review foreign-asset information available against the relevant PAN.
Verify ownership and valuation: Confirm property documents, acquisition dates and the source of funds.
Review tax returns: Check whether the required foreign-asset and income disclosures were made for the relevant years.
Confirm eligibility: Determine whether the asset falls within a category covered by FAST-DS.
Seek professional advice where needed: The applicable treatment can differ depending on residency, the nature of the asset and the circumstances of its acquisition.
Information shown on the portal should be treated as a starting point for reconciliation, not necessarily as a complete statement of all overseas holdings.
Tax Compliance and International Asset Reporting
The department’s reported outreach reflects increased attention to the disclosure of overseas assets and the use of information exchanged between tax authorities in different jurisdictions.
For individuals and businesses with cross-border interests, maintaining consistent records of foreign income, property ownership and tax filings can help reduce reporting errors. Professional NRI tax advisory may be relevant for understanding Indian tax obligations where residency status, overseas income or foreign assets complicate a taxpayer’s position.
Taxpayers should also distinguish between an asset that was not reported and one that was acquired using income that was itself undisclosed. The scheme treats certain situations differently, so the appropriate declaration and payment cannot be determined from the location of a property alone.
December 31 Deadline: What Comes Next?
The FAST-DS 2026 scheme is reported to remain open until December 31, 2026. The Income Tax Department is encouraging eligible taxpayers to examine their circumstances and use the available window where appropriate.
The deadline makes timely review important, but taxpayers should avoid submitting inaccurate declarations or assuming that the scheme applies automatically. The applicable rules, eligibility criteria and required supporting documents should be confirmed through official sources or a qualified tax professional.
The department’s outreach is intended to improve disclosure and help eligible taxpayers address specified past omissions. The practical benefit for any individual will depend on the facts of their case and whether they satisfy the scheme’s conditions.