Overview
- The Central Board of Direct Taxes notified the FAST‑DS Rules that came into force on Sunday and opened an online disclosure window that runs through December 31, 2026.
- The rules create two routes: undeclared foreign income or assets up to ₹1 crore subject to a 60% effective levy (30% tax plus an equal penalty), and certain previously taxed or non‑resident‑acquired assets up to ₹5 crore that can be regularised for a flat ₹1 lakh fee.
- Valuation is fixed to March 31, 2026 with detailed methods for bank accounts, property, jewellery, artwork and securities, and declarations must be filed electronically in Form 1 with the tax authority issuing Form 2 to state the amount due.
- After Form 2 is issued taxpayers get two months to pay without interest and may take a further two‑month extension by paying 1% simple monthly interest, otherwise the declaration is void and scheme protections lapse; Forms 3 and 4 record payment and certify immunity.
- FAST‑DS excludes assets linked to proceeds of crime or cases with pending PMLA or completed Black Money Act assessments, aims to boost voluntary compliance by small taxpayers such as students and relocated NRIs, and could prompt a wave of filings as people complete valuations and gather documents.