New Delhi, Oct 26 (IANS) The Income Tax Department has recently nudged select taxpayers who have invested in residential and commercial properties in the UAE to avail of the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), offering a one-time opportunity to declare these overseas assets which have been undisclosed so far, according to Finance Ministry sources.
The scheme provides a time-bound window to regularise eligible disclosures by paying 30 per cent tax on the fair market value and an 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.
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 an opportunity to taxpayers to report unaccounted assets and income on payment of a Rs 1 lakh fee to avoid a penalty of Rs 10 lakh each year prescribed in the Black Money Act.
Till now, approximately 1,100 taxpayers have filed applications under the scheme, which is open till December 31, 2026, sources said.
The Central government has launched the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), offering a one-time opportunity to disclose foreign assets and income that have been undisclosed so far.
To facilitate taxpayers, the Department has created a facility 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. Taxpayers can log in to the e-filing portal and download this information for the three-year period 2022-2024.
Sources informed that the information received under AEOI from the signatories of CRS/FATCA frameworks has only been displayed in the e-filing portal. Department receives information under other multilateral frameworks which has not been displayed in the portal due to various risk factors or non-disclosure commitments. Further, the Income Tax Department collects information from other sources as well. The Department decided, in a high-level meeting on October 23, that such information may also be shared with relevant taxpayers, wherever possible, to enable them to take advantage of the scheme.
The Income Tax Department has also planned outreach programmes to create awareness among taxpayers, corporates as employers, educational institutes, professional bodies and industry associations. The Central Board of Direct Taxes (CBDT), which is the apex body that heads the Income Tax Department, has also made a Committee in each region under the Principal Chief Commissioner to help taxpayers resolve their queries and concerns.
–IANS
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