Article
Feb 6, 2026
Forgot to Disclose Foreign Income or Assets? Budget 2026 is the Way!
If you are an NRI or returning Indian resident,
who failed to disclose foreign income or overseas assets in earlier Indian income tax returns, Budget 2026 has introduced a limited six month window to correct these omissions before penalties under the Black Money Act are enforced.
This one-time relief comes through the Foreign Assets of Small Taxpayers - Disclosure Scheme (FAST-DS). The scheme allows eligible taxpayers to voluntarily disclose past omissions at a much lower cost, with immunity from prosecution.
Why FAST-DS Was Introduced
According to the Finance Minister’s Budget 2026 speech, the scheme is aimed at resolving practical compliance issues faced by small taxpayers, including:
Students studying abroad
Young professionals working overseas
Tech employees holding ESOPs or RSUs
Individuals who were NRIs earlier and later returned to India
Employees with foreign retirement or savings accounts
Many such taxpayers either:
Paid tax but failed to report assets in Schedule FA, or
Did not realise certain overseas holdings were reportable under Indian tax law
FAST-DS is designed to encourage voluntary disclosure at a lower cost, instead of imposing the extremely harsh penalties prescribed under the Black Money Act.
Who Should Pay Attention
FAST-DS is relevant if you have:
Held foreign bank accounts, even dormant or low-value ones
Owned overseas shares, ESOPs, RSUs, mutual funds, or property
Returned to India after being an NRI and forgot to disclose assets
Paid tax on foreign income but missed reporting the asset in Schedule FA
Under Indian tax law, non-reporting itself is a violation, even if tax was paid.
Two Categories Under FAST-DS
Category A: Undisclosed Income or Assets
Asset value up to ₹1 crore
30% tax + 30% penalty on fair market value
Immunity from prosecution
Category B: Tax Paid, Disclosure Missed
Asset value up to ₹5 crore
Flat ₹1 lakh fee
Immunity from penalty and prosecution
What Must Be Disclosed
Disclosures must be correctly made in:
Schedule FA (Foreign Assets)
Schedule FSI (Foreign Source Income)
Applicable returns: ITR-2 or ITR-3
This includes foreign bank accounts, overseas investments, ESOPs, real estate, and brokerage or custodial accounts.
Miss the Window, and Penalties Escalate
If FAST-DS is ignored:
₹10 lakh penalty per year of non-disclosure
Possible imprisonment of up to 7 years
Full prosecution under the Black Money Act
This makes voluntary disclosure far less costly than enforcement action later.
The Practical Takeaway
FAST-DS is a rare amnesty. If you have lived, worked, or invested abroad and are unsure about past disclosures, this is the moment to review and regularise.
Rule of thumb: If in doubt, disclose.
How Pivot Money Can Help
Foreign asset disclosures demand accuracy. Errors in valuation, categorisation, or reporting can still invite scrutiny.
Pivot Money helps Indian residents, NRIs, and global Indian families:
Review past ITRs for missed foreign asset disclosures
Identify the correct FAST-DS category
Ensure Schedule FA and Schedule FSI are filled correctly
Coordinate with tax professionals to reduce risk and penalties
If you want clarity and confidence in fixing past disclosures, Pivot Money helps you clean up the past and plan ahead responsibly.
Learn more at www.pivotmoney.app