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The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS 2026) introduced in Union Budget 2026 offers a one-time opportunity for taxpayers to disclose undisclosed foreign income and assets without facing harsh penalties under the Black Money Act. This amnesty scheme is especially beneficial for NRIs, returning residents, and professionals who missed reporting foreign assets in their Income Tax Returns (ITR).

Under this scheme, eligible taxpayers can regularise past non-compliance by paying a prescribed tax or a nominal fee, depending on the nature of non-disclosure. The scheme is time-bound (around 6 months), making it crucial for individuals to act promptly.

As international financial systems become increasingly transparent, compliance with foreign asset reporting in India has become critical—especially for Non-Resident Indians (NRIs) and returning residents. To address genuine non-compliance cases, the Government of India introduced the Foreign Asset Amnesty Scheme (FAST-DS 2026) in Budget 2026.

This scheme provides a one-time opportunity to disclose undisclosed foreign income and assets while avoiding strict penalties under the Black Money Act.

Understanding FAST-DS 2026 for NRIs

The FAST-DS 2026 scheme is designed to help taxpayers voluntarily disclose foreign assets that were not reported in their Income Tax Returns (ITR).

For NRIs, the applicability becomes important in situations such as:

Transitioning from NRI to resident status

Holding foreign assets acquired abroad

Failing to disclose assets in Schedule FA after becoming resident

Misunderstanding reporting requirements

The Foreign Asset Amnesty Scheme 2026 is designed to provide NRIs and returning residents an opportunity to declare undisclosed foreign income and assets in accordance with Indian tax regulations. With increasing scrutiny under the Black Money Act, structured disclosure ensures compliance while mitigating legal exposure.

What is Foreign Asset Amnesty Scheme 2026?

It is a regulatory framework allowing eligible individuals to voluntarily disclose foreign assets and income, pay applicable taxes, and obtain relief under prescribed provisions.

Who is eligible for Foreign Asset Amnesty Scheme?

NRIs, returning NRIs, and resident taxpayers holding foreign bank accounts, overseas investments, or foreign income not previously disclosed may qualify, subject to conditions defined under the scheme.

How to apply for Foreign Asset Amnesty Scheme?

The process typically includes:

Asset identification and valuation

Tax computation as per notified rates

Filing required declarations

Ensuring documentation compliance

Returning NRI Benefit from Foreign Asset Amnesty Scheme

Returning NRIs can use the scheme to align past foreign holdings with Indian compliance requirements, reducing the risk of penalties and prosecution.

Professional advisory assistance ensures accurate interpretation of Foreign Asset Amnesty Scheme 2026 provisions, eligibility review, and structured filing.

Visit: https://www.nritaxservice.in/blog/2026/03/03/foreign-asset-amnesty-scheme-nri-applicability/

Many individuals search for the exact meaning of NRI and how residential status affects taxation in India. An NRI (Non-Resident Indian) is defined under the Income Tax Act based on physical presence in India during a financial year. Residential status directly impacts tax liability.

NRIs earning income in India must comply with tax filing norms, even if they reside abroad. This includes reporting rental income, capital gains, interest earnings, and other taxable sources.

Additionally, when transferring money outside India, Form 15CA and Form 15CB may be required to ensure tax compliance. Understanding these procedural requirements helps avoid regulatory notices and penalties.

Structured tax planning and compliance management are essential for overseas Indians managing financial interests in India.