More than a thousand small taxpayers disclose undeclared foreign assets, incomes post tax dept nudge

About eleven hundred taxpayers have disclosed undeclared foreign assets and income under the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS) launched by the income tax department, according to sources close to the development. The disclosures have come in the wake of the tax department’s nudge to the taxpayers owning undeclared assets abroad.  

“Till now approximately 1100 taxpayers have filed applications under the scheme. The scheme is open till December this year,” sources said.

“The department nudged select taxpayers who have invested in residential/ commercial properties in a country in UAE. The department has also planned outreach programs to create awareness among taxpayers, corporates as employers, educational institutes, professional bodies, and industry associations. CBDT has also made a committee in each region under Principal Chief Commissioner to help taxpayers resolve their queries and concerns,” the sources pointed out.

How does the tax department track the erring taxpayers? 

FAST-DS was launched in August this year, offering a one-time opportunity to disclose foreign assets and income hitherto undisclosed. To enable the taxpayers make the disclosure, a facility was created in the e-filing portal where a taxpayer can see information with respect to assets reported on their PANs by the foreign jurisdictions, under Automatic Exchange of Information (AEOI) popularly known as CRS/FATCA. Information for 2022-2024 is available on the e-filing portal, sources said.  

“Information received under AEOI from the signatories of CRS/FATCA frameworks only has been displayed in the e-filing portal. The department receives information under other multilateral frameworks which have not been displayed in the portal due to various risk factor or non-disclosure commitments,” sources said.  

“Further, the tax department collects information/intelligence from other sources as well. The department has decided that such information may also be shared with relevant taxpayers, wherever possible, to enable them take advantage of the Scheme,” sources added.

What are the key tenets of the scheme?

The Scheme provides a time-bound window to regularise eligible disclosures by paying 30% tax on the fair market value and equal amount of penalty in addition to tax. A crucial feature of the scheme is that it is fully online, trust-based and self-declaratory, the government said.

“A valid declaration brings immunity from further assessment, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (Black Money Act). The Scheme further provides opportunity to the taxpayers to report accounted assets and income on payment of Rs 1 Lakh fee to avoid penalty of Rs 10 lakh each year prescribed in the Black Money Act,” sources pointed out.