Overview
- The government opened the one‑time Foreign Assets of Small Taxpayers Disclosure Scheme to let residents regularise undisclosed overseas assets and income by paying an aggregate 60% charge for cases that qualify for the lower table.
- The scheme fixes March 31, 2026 as the valuation and exchange‑rate date for assets, and that conversion can raise the rupee value of dollar holdings above the ₹1 crore cap that qualifies for the 60% option.
- Tax professionals disagree on which date should be used to convert foreign income, with some saying the March 31 valuation governs eligibility and others arguing income should be converted using the year it was earned, leaving taxpayers uncertain.
- Some taxpayers are considering splitting liabilities—filing an updated return for the excess and using FAST‑DS for the balance—to save an estimated ₹30–40 lakh, but experts warn authorities could void FAST‑DS declarations for misrepresentation.
- Valuation rules that use the higher of acquisition cost, market value, or indexed cost mean assets that fell in local currency terms can still be assessed at higher historical or indexed values, and the scheme also offers a flat fee route for certain foreign assets up to ₹5 crore with a final filing window that closes on December 31, 2026.