- The Income Tax Department enabled Form 1 for FAST-DS 2026, letting taxpayers disclose foreign assets and income by December 31, 2026.
- First-category declarations pay 60% of the declared amount when the foreign asset or income was never offered to tax.
- Second-category cases carry a flat ₹1 lakh fee for assets already taxed or omitted from the correct return schedule.
The Income Tax Department has enabled Form 1 on its e-filing portal for FAST-DS 2026, opening a one-time window to declare qualifying undisclosed foreign assets and foreign-sourced income. Taxpayers must submit declarations by December 31, 2026.
The electronic filing period began on August 16, 2026. The Central Board of Direct Taxes rolled out the scheme under the Government of India, while the department published an official FAQ explaining the process.
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The scheme divides declarations into two payment categories. One applies when foreign assets or income were never offered to tax. The other covers assets that were taxed but omitted from the appropriate return schedule.
The difference can be substantial. The first category carries a payment equal to 60% of the declared amount, while the second carries a flat fee.
The payment depends on why the foreign asset was omitted
| Declaration category | Value limit | Amount payable |
|---|---|---|
| Foreign assets or income never offered to tax | ₹1 crore | 30% tax plus an additional amount equal to 100% of that tax, or 60% total |
| Assets already offered to tax, or acquired while non-resident but omitted from the correct return schedule | ₹5 crore | Flat ₹1 lakh fee |
The ₹1 crore ceiling applies to the aggregate value of undisclosed foreign assets or foreign income in the first category. The additional amount equals 100% of the underlying 30% tax.
The second category reaches a higher cap of ₹5 crore. It applies where the asset was already offered to tax, or where a person acquired it while non-resident but failed to report it in the relevant schedule.
The declaration starts a four-form compliance sequence
Applicants must upload evidence showing how they acquired the asset or earned the income. A valuation report must also accompany the declaration when valuation has been carried out.
The process then moves through three department and taxpayer actions:
- Form 2: Tax authorities issue an order determining the amount payable within 1 month from the end of the month of declaration.
- Form 3: The taxpayer files payment intimation and proof within 2 months from the end of the month Form 2 is received.
- Form 4: The department issues a certificate confirming valid payment within 1 month from the end of the month Form 3 is received.
The sequence links the initial disclosure to proof of payment and a final departmental certificate. Each deadline is calculated from the end of the relevant month.
The window covers assets and income that fell outside earlier reporting
Eligible declarations can include undisclosed foreign assets and undisclosed foreign income. They can also cover foreign assets already offered to tax but left out of the correct return schedule.
The same provision reaches assets acquired while the taxpayer was a non-resident when those assets were not reported in the relevant schedule. The scheme is designed for qualifying small taxpayers and uses electronic filing rather than a physical submission process.
As of September 2, 2026, the declaration window remains open. Taxpayers have until December 31, 2026 to file electronically and begin the payment process that follows.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
