Income Tax FAST-DS 2026 scheme: Is it for you? Complete guide to file Form 1 online before December 31 deadline
The Income Tax Department has come up with an online filing facility under the ‘Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) 2026 ’ for eligible individuals. This is a simple one-time scheme that has been introduced to permit eligible taxpayers to voluntarily disclose specified foreign assets and income that were not reported properly and correctly in their income tax returns.
The aim of the scheme is to increase transparency and boost tax compliance. Hence, in order to ensure constructive compliance, taxpayers must submit Form 1 by December 31, 2026. Still, what is vital to keep in mind is that the eligibility in this case depends on an individual’s residential status, the source of funds and the total value of the foreign assets.
The scheme is focused on covering eligible Indian residents and certain non-residents and residents but excludes ordinarily resident (RNOR) taxpayers, subject to the applicable rules, regulations and prescribed conditions. Do note, certain RNORs and non-residents may also qualify if they meet the residency conditions for the relevant year.
The complete details of both categories are discussed below, along with the potential payable amount.
|
Disclosure |
Amount payable |
|
|---|---|---|
| 1 | Undisclosed foreign assets or untaxed foreign income worth up to ₹1 crore | 60% of the declared value or income |
| 2 | Foreign assets acquired from income earned while non-resident, or income already taxed in India but omitted from the relevant ITR schedule; asset value up to ₹5 crore | Fixed fee of ₹1 lakh |
Note: The details discussed above are illustrative. For complete category details, disclosures, and other vital aspects, refer to the official website of the Income Tax Department.
Eligible taxpayers can follow these steps:
- Log in: Visit the official income tax e-filing portal. Log in to your account using your PAN details and password.
- Select Form 1: Click on ‘e-File ’, followed by Income Tax Forms, and file income tax forms. After that, select ‘FAST-DS 2026 (Form 1) as provided under the sub-sections, and then click ‘File Now.’
- Enter your basic details: Once you have clicked ‘File Now’, click on ‘Let’s get started’ and then carefully check and verify your personal information. Select the applicable category in your case, then provide the complete details of the foreign income or assets.
- Review the declaration: Complete all your relevant sections, and review the entire document once before submission. Check the exact asset details, valuations and amount payable, and preview the form. This is also the step to seek professional guidance if needed before clicking the final submit button, in order to eliminate discrepancies and doubts, if any.
- Submit and e-verify: Once all basic details are cross-checked for any errors, mistakes or omissions, then you should submit the declaration and complete verification using an available method as per instructions, such as Aadhaar OTP, DSC or eligible EVC. Finally, save the acknowledgement for future reference.
Once the above steps are completed and Form 1 is successfully submitted. The department will then issue Form 2. This form will categorically specify the amount payable. Once you have the form, go through it carefully, and subsequently, taxpayers should ensure that they pay the pending dues (if any) through Challan ITNS 289 and submit Form 3. Later on, Form 4 will be issued as the certificate of declaration and payment.
As the December 31 deadline is rapidly approaching, eligible taxpayers should carefully check and verify their disclosures and basic details, understand the complete procedure and complete the process well within time to ensure meaningful compliance with tax authorities.
A valid declaration backed by a clear understanding of the scheme can go a long way to help in securing immunity under the Black Money Act, subject to the scheme’s rules and conditions.
Shivam Shukla
Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in
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HomeMoneyPersonal FinanceIncome Tax FAST-DS 2026 scheme: Is it for you? Complete guide to file Form 1 online before December 31 deadline
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