The Indian government has today, 16 August, officially opened a dedicated tax amnesty window for small taxpayers to declare previously undisclosed foreign assets. Known as the Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), 2026, this one-time opportunity allows citizens to come clean without the fear of heavy-handed prosecution. First announced in the Union Budget 2026, the scheme is specifically designed for students, non-resident Indians (NRIs), and middle-income families who may have missed reporting foreign bank accounts or properties. 

By coming forward now, taxpayers can clear their records and gain immunity from the harsh penalties usually associated with the Black Money Act.

A fresh start for small savers

The scheme acts as a legal "reset" button that remains active until December 31, 2026. It covers two main groups of people. The first involves those with "undisclosed" foreign income or assets—money that was never taxed in India. If the total value of these assets is under ₹1 crore, you can settle the matter by paying a 30% tax plus a 30% penalty. The second group consists of people who have already paid tax on their foreign assets—perhaps while working abroad—but simply forgot to list them in the correct schedule of their Indian tax returns. For this group, if the assets are worth up to ₹5 crore, the government is offering a remarkably simple way out: a flat fee of just ₹1 lakh. 

Knowing if you qualify

Eligibility is surprisingly broad, focusing on the average person rather than financial experts. You are eligible if you are a current resident of India. However, even if you are now a non-resident, you can still apply if you were a resident when you first earned that income or bought that asset. This is particularly helpful for those who have spent years working overseas and recently returned home. The valuation of your assets will be based on their market value as of March 31, 2026. If you aren't sure of the exact value, the government generally accepts the cost you originally paid plus an adjustment for inflation, known as the indexed cost.

Simple steps to compliance

The entire process is digital, removing the need to visit a tax office. You must file a declaration using "Form 1" on the official income tax portal. You can list multiple assets, such as bank accounts, jewellery, or property, in a single form. For example, if a taxpayer has a hidden foreign bank account worth ₹60 lakh and another ₹20 lakh in foreign income, their total "undisclosed" amount is ₹80 lakh. Under the scheme, they would pay ₹24 lakh in tax and another ₹24 lakh in penalty, totalling ₹48 lakh to settle the account for good. After you submit your form, the tax authorities will verify it and issue an order confirming the amount you owe. Once paid, you receive a final certificate that protects you from future prosecution regarding these specific assets.

For more specifics and FAQs, visit FAST-DS: FAQs on the government site at https://www.incometaxindia.gov.in/.