The FAST-DS scheme is a government initiative that allows eligible taxpayers to disclose undisclosed foreign assets and income. This one-time opportunity is open until December 31, 2026, and requires payment of an effective 60% tax on the declared value. The scheme aims to help small taxpayers, including students, young professionals, technology employees, and relocated non-resident Indians, who may have missed reporting foreign assets or income.
- The scheme opened on August 16, 2026, and closes on December 31, 2026.
- Taxpayers must pay 30% tax plus an additional amount equal to the tax, totaling 60% effective tax.
- The fair market value of assets is calculated as of March 31, 2026.
- The Income Tax Department provides an e-filing portal to access asset information reported by foreign jurisdictions.
- Selected taxpayers with investments in UAE properties have been contacted to inform them about the scheme.
What is the FAST-DS scheme?
The FAST-DS scheme is a tax disclosure program launched by the government on August 16, 2026. It offers a one-time chance for taxpayers to declare undisclosed foreign assets and income. The goal is to encourage compliance and reduce tax evasion related to foreign holdings.
Who can use the FAST-DS scheme?
The scheme targets small taxpayers such as students, young professionals, technology sector employees, and non-resident Indians who have relocated and may have failed to disclose foreign assets or income. It is designed to make disclosure easier and more accessible for these groups.
How much tax must be paid under the scheme?
Taxpayers must pay a 30% tax on the value of the declared foreign asset or income. Additionally, they must pay an amount equal to this tax, making the total effective tax rate 60%. This payment settles the tax liability on the undisclosed assets.
How is the value of foreign assets determined?
The fair market value of the undisclosed foreign assets is calculated as of March 31, 2026. This valuation date helps standardize the assessment of asset worth for tax purposes.
How can taxpayers find information about their foreign assets?
The Income Tax Department has set up a facility on its e-filing portal where taxpayers can view information about assets reported against their PAN by foreign jurisdictions. This data comes from the Automatic Exchange of Information framework, also known as CRS/FATCA, covering the years 2022 to 2024.
Has the government taken any steps to inform taxpayers?
Yes, the Income Tax Department has contacted selected taxpayers who have invested in residential or commercial properties in the UAE. A high-level meeting on October 23, 2026, also decided to share relevant information or intelligence with taxpayers to help them benefit from the scheme.
Frequently Asked Questions
Q: When does the FAST-DS scheme end?
A: The scheme closes on December 31, 2026.
Q: What is the effective tax rate under the scheme?
A: The effective tax rate is 60%, which includes 30% tax plus an equal additional amount.
Q: Can I check my foreign asset information online?
A: Yes, the Income Tax Department’s e-filing portal provides access to asset information reported by foreign jurisdictions for 2022 to 2024.
Q: Who is eligible to use the FAST-DS scheme?
A: Small taxpayers such as students, young professionals, tech employees, and relocated non-resident Indians who have undisclosed foreign assets or income are eligible.
