A forgotten overseas bank account, ESOPs (employee stock option plans), a property inherited overseas, or even a foreign asset acquired from fully explained and taxed funds but inadvertently missed in Schedule FA (foreign assets) of the income tax return (ITR), can leave a taxpayer with a surprisingly complicated compliance problem years later. What may begin as a careless disclosure omission can eventually become a significant cause of concern entailing hefty tax, penalty and prosecution risk.
Therefore, for many taxpayers, the issue may not be black money at all, but simply an old disclosure mistake that has become increasingly difficult to ignore. For them, the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) offers a rare opportunity to put such mistakes to rest. Effective 16 August 2026, this one-time amnesty scheme provides for a time-bound resolution to regularise specified foreign asset and foreign income cognisance and disclosure lapses. The application window of the scheme, closes on 31 December 2026, while 31 March 2026 is the crucial valuation date.
