The Income Tax Department has made Form 1 available on the e-Filing portal for taxpayers seeking to declare undisclosed foreign assets or foreign-sourced income under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026).
“Form 1 under the ‘Foreign Assets of Small Taxpayers Disclosure Scheme, 2026’ (FAST-DS 2026) is now available for filing on the e-Filing portal,” the Income Tax Department said in a post on X.
The scheme provides small taxpayers with a time-bound opportunity to disclose undisclosed foreign assets or foreign-sourced income by paying the specified tax or fee, subject to the conditions prescribed under the scheme.
“With Form 1 now live, the compliance window under FAST-DS 2026 — the Foreign Assets of Small Taxpayers Disclosure Scheme — has moved from notification to action,” said Aarjav Jain, Executive Director and NRI Tax Expert, Dinesh Aarjav & Associates, Chartered Accountants.
On August 15, 2026, the government notified the Foreign Assets of Small Taxpayers – Disclosure Scheme Rules, 2026 (FAST-DS Rules 2026) to operationalise the scheme. Along with the rules, the government also issued FAQs relating to the scheme.
FAST-DS 2026: What tax or fee will apply?
For undisclosed foreign assets or foreign-sourced income covered under the scheme, taxpayers will pay 30 percent tax along with an additional amount equal to the tax, resulting in an effective levy of 60 percent.
For certain foreign assets already offered to tax or acquired while the taxpayer was a non-resident but not reported in the return, a Rs 1 lakh fee applies, subject to the prescribed threshold.
When does the Rs 1 lakh fee apply?
Under FAST-DS, the Rs 1 lakh fee applies where a taxpayer holds a foreign asset that was:
- Acquired from income that had already been offered to tax under Indian law but was not disclosed in the relevant income tax return; or
- Acquired from income earned outside India during a period when the taxpayer was a non-resident, but the asset was not disclosed after the taxpayer subsequently became a resident in India.
FAST-DS 2026: What is the valuation date?
The valuation date prescribed under the scheme is March 31, 2026. Taxpayers have to determine the value of their foreign assets or income in accordance with the valuation framework specified in the rules.
FAST-DS 2026: How to file Form 1
The declaration has to be filed electronically through Form 1 on the Income Tax Department’s e-Filing portal.
“Filing Form 1 without first nailing down the category and the paperwork to support it is where most people will get this wrong,” Jain said.
Taxpayers will have to provide supporting documents relating to the acquisition of the foreign assets or the earning of foreign-sourced income. Valuation reports will also have to be furnished wherever applicable.
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