The Indian government is keeping a close eye not only on the people living in the country but also on their assets – whether within the country or abroad. People who have property abroad will now have to give complete information about it to the government. If this is not done, strict action will be taken under the ‘Black Money Act’.
**What is the whole matter?**
The government is going to launch the ‘Foreign Assets Disclosure Scheme for Small Taxpayers’ (FAST-DS) on July 1, 2026. Under the scheme, people will have six months – till December 31, 2026 – to report their foreign assets and income, which were not previously reported in income tax returns. If they do not do so during this period, strict action will be taken against them under the ‘Black Money Act’.
A government source shared the information. According to sources, this scheme has been specially designed for middle class and small taxpayers. This includes IT professionals with ESOPs (Employee Stock Ownership Plan) of foreign companies, NRIs returning to India and students who have bank accounts or small assets while studying abroad.
**About the scheme**
This scheme will work in two categories. The first category includes undisclosed foreign assets and income up to ₹1 crore; On this declaration, tax will be levied at the rate of 60% of the market value of the property. The second category includes foreign assets up to ₹5 crore, where the income from it had already been declared and tax had been paid in India, but the foreign assets were not declared in ‘Schedule FA’ of the income tax return. In such cases, a lump sum fee of ₹1 lakh will have to be paid.
**Why is this scheme important?**
The aim of the government behind implementing this scheme is to save people from heavy fines related to black money laws. Those who provide correct information about their foreign assets within the stipulated time limit will be able to avoid heavy fines and criminal action under the Black Money Act. This scheme is being seen as a big opportunity to correct the old records, especially for tech professionals and Indians returning from abroad.
