The Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS), 2026, is a one-time voluntary scheme that allows eligible taxpayers to disclose specified foreign assets and income that were not previously reported.
The scheme opened on 16 August, with 31 December 2026 as the deadline for making a declaration.
One of the key steps is determining the market value of these foreign assets for reporting under the scheme.
The higher of the two is taken as the fair market value (FMV). For example, if a taxpayer bought jewellery for ₹20 lakh, but it was worth ₹28 lakh on 31 March, the value to be declared will be ₹28 lakh.
If no such valuation is done, the indexed cost of acquisition is treated as the FMV.
The rules cover a range of foreign assets, including bank accounts, shares, overseas property, bullion, jewellery and precious stones, paintings, artwork, and interests in foreign partnerships, AOPs and LLPs.
A foreign bank account is treated differently. Taxpayers cannot simply use the balance in the account on 31 March 2026. Instead, they need to add up the eligible deposits made into the account from the date it was opened up to 31 March.
However, the same money should not be counted twice. If money is withdrawn from the account and that same money is later deposited back into the account, the later deposit is ignored.
Suppose a taxpayer opened a foreign bank account in 2010 and made these transactions:
The CBDT example assumes that the earlier withdrawals were later put back into the account. So, from the $500 deposited in 2013, $200 is treated as money coming from the earlier $700 withdrawal. Only the remaining $300 is counted as a fresh deposit.
Similarly, from the $1,000 deposited in 2021, $400 is treated as the money withdrawn in 2020. Therefore, only $600 is counted.
After these adjustments, the total eligible deposits are $4,900. The amount is then converted into Indian rupees using the applicable exchange rate on 31 March 2026.
For an interest in a foreign partnership, AOP or LLP, first calculate the entity's net assets as on 31 March. The value is then divided among partners based on their capital contribution, and for the remaining amount, according to the agreement or profit-sharing ratio.
For example, if a foreign property is sold and the money is deposited into a bank account, the sale proceeds should not be counted again as a separate fresh deposit.
For currencies covered by the RBI's specified list, the RBI reference rate as of 31 March 2026 needs to be used.