Taxpayers fret over loose ends in amnesty scheme, seek CBDT clarity on foreign asset disclosure rules as deadline nears
Economic Times - Policy · Published 9 November 2026 · Last updated
FAST‑DS offers a one‑time amnesty for small foreign assets, but vague CBDT guidelines risk penalising many taxpayers before the Dec 31 deadline.
Key points
- FAST‑DS (Foreign Assets of Small Taxpayers‑Disclosure Scheme) was notified by the CBDT on 16 August 2026 and closes on 31 December 2026.
- Taxpayers can regularise undisclosed overseas stocks, properties, ESOPs and earnings up to ₹1 crore by paying a 60 % combined tax‑penalty, or assets up to ₹5 crore with a flat ₹1 lakh fine.
- The scheme excludes the need to disclose sources of funds, but requires valuation as on 31 March 2026, a point criticised due to rupee depreciation.
- Professionals and taxpayers have approached the CBDT for clarification on issues such as signatory‑only bank accounts, gifts versus inheritances, joint‑holder apportionment, and NRI‑earned deposits.
- The Chamber of Tax Consultants has asked the CBDT to confirm that a signatory with no financial interest is not treated as an undisclosed foreign asset under FAST‑DS.
- Harshal Bhuta (Ascentium India) highlighted uncertainty whether undisclosed foreign income credited to a bank account must be disclosed as income or as an asset.
- Chartered accountant Ashish Karundia warned that employees who missed ESOP reporting could face double taxation – withholding tax abroad, a 60 % levy in India, plus a ₹1 lakh fine.
- Legal experts note that once a declaration is accepted it cannot be altered and no refund is possible; false information invalidates the filing.
- Failure to declare by the deadline may expose taxpayers to higher penalties under the Black Money (Undisclosed Foreign Income and Assets) Act.
- Critics argue the ₹1 crore ceiling is too low; partner Rajesh Shah suggests raising the limit to ₹100‑200 crore to broaden participation.
Background
- The Finance Act 2026 introduced Chapter IV provisions for FAST‑DS, a mini‑amnesty targeting small‑scale foreign asset holders.
- A similar voluntary disclosure scheme was launched in 2015 without a monetary ceiling, serving as a reference point for current debates.
- Since July 2026, the CBDT has been publishing foreign asset information received under the Automatic Exchange of Information (AEOI) in taxpayers’ Annual Information Statements.
- The Black Money (Undisclosed Foreign Income and Assets) Act continues to impose severe penalties on non‑disclosure, creating urgency for compliance.
- Professional bodies such as the Chamber of Tax Consultants and leading CA firms have historically lobbied the CBDT for clearer guidelines on foreign asset reporting.
UPSC relevance, Prelims facts and Mains angle for this issue are in the full SWAदेSH note.
Original report: Economic Times - Policy