₹1 crore foreign asset disclosure could cost 60% under FAST-DS: Check the math
FAST-DS can impose a substantial cost on taxpayers declaring certain undisclosed foreign assets or income, with the tax and additional amount together reaching 60% of the declared value. For a ₹1 crore declaration, the total payable under this category can be ₹60 lakh.
- Aug 15, 2026,
- Updated Aug 15, 2026 4:52 PM IST
Taxpayers with certain undisclosed foreign assets or foreign income of up to ₹1 crore can use the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, but the cost of coming clean can be substantial. Under one category of the scheme, the taxpayer has to pay 30% tax on the declared value or income, plus an additional amount equal to that tax, taking the total payable to 60%.
The one-time voluntary disclosure scheme comes into force on August 16, 2026, and declarations can be filed until December 31, 2026.
How does the 60% calculation work?
The first category under FAST-DS covers an undisclosed asset located outside India or undisclosed foreign income that was not offered to tax. The aggregate value of the undisclosed foreign asset and foreign income must not exceed ₹1 crore.
The amount payable comprises two components: 30% tax on the value of the undisclosed asset or foreign income, and an additional amount equal to 100% of that tax.
For example, if an eligible taxpayer declares an undisclosed foreign asset worth ₹1 crore, the basic tax at 30% would be ₹30 lakh. An additional amount equal to the tax—another ₹30 lakh—would then be payable. The total amount would therefore be ₹60 lakh.
The same calculation applies to undisclosed foreign income covered by this category. If a taxpayer declares ₹20 lakh of undisclosed foreign income, for instance, the 30% tax would be ₹6 lakh and the additional amount would also be ₹6 lakh, taking the total payable to ₹12 lakh.
The official FAQ provides a similar example involving a ₹60 lakh foreign bank account and ₹20 lakh of undisclosed foreign income. The tax component is ₹24 lakh, while the additional amount is another ₹24 lakh, resulting in a total payment of ₹48 lakh.
FAST-DS: How the 60% Payment Is Calculated
| Undisclosed Foreign Asset / Income | Tax @ 30% | Additional Amount (100% of Tax) | Total Amount Payable |
|---|---|---|---|
| ₹10 lakh | ₹3 lakh | ₹3 lakh | ₹6 lakh |
| ₹20 lakh | ₹6 lakh | ₹6 lakh | ₹12 lakh |
| ₹40 lakh | ₹12 lakh | ₹12 lakh | ₹24 lakh |
| ₹60 lakh | ₹18 lakh | ₹18 lakh | ₹36 lakh |
| ₹80 lakh | ₹24 lakh | ₹24 lakh | ₹48 lakh |
| ₹1 crore | ₹30 lakh | ₹30 lakh | ₹60 lakh |
Who can make such a declaration?
FAST-DS is available to eligible residents for the relevant previous year. Certain non-residents and RNORs can also qualify if they were residents of India in the year to which the undisclosed foreign income relates or in the year the foreign asset was acquired.
A declaration can be made where the taxpayer did not file a return, failed to disclose the foreign asset or income in a return already filed, or where the income or asset has escaped assessment within the specified provisions.
What happens to the ₹1 crore limit?
The ₹1 crore threshold applies specifically to the first category of declaration. It is the aggregate value of the undisclosed foreign asset and undisclosed foreign income that must not exceed ₹1 crore.
Taxpayers should also note that the scheme has a separate category for certain foreign assets that were already offered to tax or were acquired while the taxpayer was non-resident but were not reported in the relevant return schedule. That category has a higher ₹5 crore threshold and involves a flat ₹1 lakh fee, subject to the scheme's conditions.
The valuation date for FAST-DS is March 31, 2026, and the scheme specifies different methods for determining the fair market value of different types of foreign assets.
For taxpayers considering the disclosure route, the key point is clear: under the first category, a ₹1 crore undisclosed foreign asset does not mean a ₹1 crore payment. The maximum aggregate value is ₹1 crore, while the prescribed tax and additional amount together can take the payable amount to ₹60 lakh.
Taxpayers with certain undisclosed foreign assets or foreign income of up to ₹1 crore can use the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, but the cost of coming clean can be substantial. Under one category of the scheme, the taxpayer has to pay 30% tax on the declared value or income, plus an additional amount equal to that tax, taking the total payable to 60%.
The one-time voluntary disclosure scheme comes into force on August 16, 2026, and declarations can be filed until December 31, 2026.
How does the 60% calculation work?
The first category under FAST-DS covers an undisclosed asset located outside India or undisclosed foreign income that was not offered to tax. The aggregate value of the undisclosed foreign asset and foreign income must not exceed ₹1 crore.
The amount payable comprises two components: 30% tax on the value of the undisclosed asset or foreign income, and an additional amount equal to 100% of that tax.
For example, if an eligible taxpayer declares an undisclosed foreign asset worth ₹1 crore, the basic tax at 30% would be ₹30 lakh. An additional amount equal to the tax—another ₹30 lakh—would then be payable. The total amount would therefore be ₹60 lakh.
The same calculation applies to undisclosed foreign income covered by this category. If a taxpayer declares ₹20 lakh of undisclosed foreign income, for instance, the 30% tax would be ₹6 lakh and the additional amount would also be ₹6 lakh, taking the total payable to ₹12 lakh.
The official FAQ provides a similar example involving a ₹60 lakh foreign bank account and ₹20 lakh of undisclosed foreign income. The tax component is ₹24 lakh, while the additional amount is another ₹24 lakh, resulting in a total payment of ₹48 lakh.
FAST-DS: How the 60% Payment Is Calculated
| Undisclosed Foreign Asset / Income | Tax @ 30% | Additional Amount (100% of Tax) | Total Amount Payable |
|---|---|---|---|
| ₹10 lakh | ₹3 lakh | ₹3 lakh | ₹6 lakh |
| ₹20 lakh | ₹6 lakh | ₹6 lakh | ₹12 lakh |
| ₹40 lakh | ₹12 lakh | ₹12 lakh | ₹24 lakh |
| ₹60 lakh | ₹18 lakh | ₹18 lakh | ₹36 lakh |
| ₹80 lakh | ₹24 lakh | ₹24 lakh | ₹48 lakh |
| ₹1 crore | ₹30 lakh | ₹30 lakh | ₹60 lakh |
Who can make such a declaration?
FAST-DS is available to eligible residents for the relevant previous year. Certain non-residents and RNORs can also qualify if they were residents of India in the year to which the undisclosed foreign income relates or in the year the foreign asset was acquired.
A declaration can be made where the taxpayer did not file a return, failed to disclose the foreign asset or income in a return already filed, or where the income or asset has escaped assessment within the specified provisions.
What happens to the ₹1 crore limit?
The ₹1 crore threshold applies specifically to the first category of declaration. It is the aggregate value of the undisclosed foreign asset and undisclosed foreign income that must not exceed ₹1 crore.
Taxpayers should also note that the scheme has a separate category for certain foreign assets that were already offered to tax or were acquired while the taxpayer was non-resident but were not reported in the relevant return schedule. That category has a higher ₹5 crore threshold and involves a flat ₹1 lakh fee, subject to the scheme's conditions.
The valuation date for FAST-DS is March 31, 2026, and the scheme specifies different methods for determining the fair market value of different types of foreign assets.
For taxpayers considering the disclosure route, the key point is clear: under the first category, a ₹1 crore undisclosed foreign asset does not mean a ₹1 crore payment. The maximum aggregate value is ₹1 crore, while the prescribed tax and additional amount together can take the payable amount to ₹60 lakh.