"New voluntary scheme lets small taxpayers disclose foreign assets at 60% tax"
FAST-DS
Foreign Assets of Small Taxpayers-Disclosure Scheme; a time-bound voluntary foreign-asset disclosure window at 60% effective tax
Black Money Act, 2015
statute imposing 30% tax plus equal penalty and prosecution risk on undisclosed foreign income and assets
India's effort to bring undisclosed foreign wealth into the tax net has a long legislative and policy history. The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 — commonly called the Black Money Act — was enacted as a standalone statute to deal specifically with foreign assets and income not disclosed to Indian tax authorities. Unlike the Income-tax Act, 1961, which covers domestic income, the Black Money Act imposes a flat 30% tax plus an equal penalty (effectively 60% levy) and provides for prosecution, making it a stringent deterrent. Prior to this, the government had used the Income Declaration Scheme, 2016 to allow domestic undisclosed income to be declared at a combined rate of 45% (tax plus surcharge plus penalty), demonstrating that periodic amnesty-style windows are a recurring policy instrument for broadening the tax base.
The Central Board of Direct Taxes (CBDT), functioning under the Ministry of Finance, is the apex body for administering direct tax laws in India. It has progressively tightened foreign-asset reporting requirements through Schedule FA (Foreign Assets) in income-tax returns, mandatory disclosure of beneficial ownership in overseas entities, and information-sharing under bilateral tax treaties and the Common Reporting Standard (CRS) framework of the OECD. As India's participation in automatic exchange of financial information has deepened, the information asymmetry that once allowed foreign holdings to remain hidden has narrowed considerably — creating both the pressure and the opportunity for a targeted disclosure window.
The Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), announced in the Union Budget 2026-27 and notified by the CBDT, is a time-bound voluntary disclosure mechanism. Its defining feature is a two-tier structure based on the nature and value of the undisclosed asset. The first category covers foreign assets or income never previously offered to tax, subject to an aggregate value ceiling of ₹1 crore. The second category covers assets that were already taxed or acquired during non-resident status but were simply not reported in the correct schedule of the tax return; this category carries a higher threshold of ₹5 crore and requires payment of a flat ₹1 lakh fee rather than a percentage-based tax.
The tax structure is straightforward: a 30% tax on the fair market value of the declared asset (valued as of March 31, 2026), plus an additional amount equal to that tax — bringing the effective levy to 60%. …
Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?
With reference to the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), consider the following statements:
1.The effective tax rate under FAST-DS is 60%, comprising a 30% base tax and an additional equal amount.
2.The scheme provides immunity from prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 for assets declared under it.
3.The asset valuation date for declarations under FAST-DS is the date of filing the declaration.
Which of the statements given above is/are correct?
Under the Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), which of the following correctly describes the two categories of declarations?
1.Category 1 covers foreign assets never previously offered to tax, with an aggregate value ceiling of ₹1 crore.
2.Category 2 covers foreign assets already taxed or acquired during non-resident status but unreported in the tax-return schedule, with a threshold of ₹5 crore and a ₹1 lakh fee.
3.Both categories attract the same 60% effective tax rate.
Select the correct answer using the code below:
Which of the following is/are correct regarding the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?
1.It is a standalone statute separate from the Income-tax Act, 1961, dealing specifically with foreign undisclosed assets.
2.It imposes a flat 30% tax on undisclosed foreign assets plus an equal penalty, making the combined levy 60%.
3.Prosecution under this Act can be avoided by making a valid declaration under FAST-DS for the disclosed assets.
Select the correct answer using the code below:
With reference to India's framework for dealing with undisclosed foreign assets, which of the following statements is/are correct?
1.The Common Reporting Standard (CRS) is an OECD framework under which foreign financial institutions automatically report Indian residents' account information to Indian tax authorities.
2.The Income Declaration Scheme, 2016 was designed to address undisclosed foreign assets and income.
3.Under FAST-DS, declared income is excluded from the taxpayer's total income under the Income-tax Act, 1961.
Select the correct answer using the code below:
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