29 Jun 2026Budget 2026 has opened FAST-DS — the Foreign Assets of Small Taxpayer Disclosure Scheme — a one-time, six-month window for returning NRIs and residents to voluntarily disclose missed foreign bank accounts, ESOPs/RSUs and overseas investments, pay a defined charge, and walk away with full immunity from penalty and prosecution under the Black Money Act, 2015.
Updated: June 2026 | Regi Tom Antony & Associates, Chartered Accountants, Kochi
If you have moved back to India from the UAE — or are planning to — and you still hold a Dubai bank account, vested RSUs from a foreign employer, a brokerage account, or any overseas investment you never reported in your Indian tax return, this is the single most important compliance development of the year. Here is what it covers, who qualifies, what it costs, and why the clock matters.
What is FAST-DS 2026?
FAST-DS 2026 is a one-time, six-month voluntary disclosure scheme introduced in the Union Budget 2026 (Finance Bill 2026) and notified by the CBDT on 1 February 2026. It lets resident Indians, returning NRIs and RNORs declare previously undisclosed foreign assets — foreign bank accounts, ESOPs/RSUs, overseas investments and foreign income — and settle the past by paying a defined charge. In exchange, the taxpayer receives complete immunity from penalty and prosecution under the Black Money Act, 2015 and the Income-tax Act, 1961 for the disclosed assets, which cannot be reopened or reassessed in any later year.
In short: a 60% settlement today versus a 120% liability plus prosecution if the department finds it first.
Why this matters specifically for UAE returnees
The UAE has been a zero-income-tax jurisdiction for most of the period that today's returnees lived there. That created a very common pattern — a salary account in a UAE bank that kept running after you moved back, ESOPs or RSUs from a multinational employer that vested while you were abroad, a brokerage account opened during the UAE years, or end-of-service gratuity and foreign pension pots.
None of this was taxable while you were a non-resident. The problem begins the moment your residential status changes on return to India. Once you become Resident, Indian law requires foreign assets and foreign income to be reported in Schedule FA of your income tax return — and the penalty regime behind that schedule is severe. Most UAE returnees did not knowingly hide anything; they simply did not realise an old Dubai account or a tranche of vested RSUs had to be disclosed. FAST-DS exists precisely for this honest-mistake population.
What happens if you do not disclose: the Black Money Act exposure
- Failure to report a foreign asset in Schedule FA: flat penalty of Rs 10,00,000 per assessment year.
- Undisclosed foreign income or asset: tax at 30% plus penalty up to 90% — an effective liability of up to 120%.
- Wilful non-disclosure: prosecution with rigorous imprisonment.
With the automatic exchange of financial information (CRS / FATCA), Indian authorities now routinely receive details of overseas accounts directly from foreign banks. The "they'll never know" assumption is no longer safe.
The two categories under FAST-DS 2026
Category A — the amnesty track
For genuinely undisclosed foreign assets where the aggregate value does not exceed Rs 1 crore as on 31 March 2026. Charge: 30% tax + 30% additional levy = 60% of the value, versus up to 120% plus prosecution otherwise. The disclosed asset is not reopened or reassessed in any later year.
Category B — the regularisation track
For foreign assets acquired out of already-taxed income, or during your period of NRI status, that you simply failed to report in Schedule FA. Charge: a one-time, flat compounding fee of Rs 1,00,000. This is the track most genuine UAE returnees fall into — the money was clean (earned tax-free in the UAE as a non-resident); the only failure was the Schedule FA reporting.
An additional relief for small foreign assets (below Rs 20 lakh)
A supplementary provision grants immunity from prosecution for non-disclosure of non-immovable foreign assets with an aggregate value below Rs 20 lakh, with retrospective effect from 1 October 2024, and no penalty is prescribed for such cases.
Who is eligible?
Eligibility is broader than many assume. You can declare if you were, or are, a resident in India during the relevant period — which expressly includes a person who is currently RNOR but was resident when the asset was acquired, a person who is currently an NRI but was resident when the income was earned, and returned NRIs, overseas students, professionals and tech employees with unreported ESOPs/RSUs.
Frequently asked questions
I earned my UAE money tax-free as a non-resident. Do I still need to disclose?
The income may have been legitimately tax-free in the UAE, but once you became an Indian resident the foreign asset must be reported in Schedule FA. If you missed that, Category B (flat Rs 1,00,000 fee) is designed for exactly this situation. The clean source of funds is what makes Category B available to you.
My undisclosed foreign assets are worth more than Rs 1 crore. Can I still use FAST-DS?
Category A's 60% concessional settlement is available only where the aggregate undisclosed value does not exceed Rs 1 crore. Above that threshold the position is more complex and must be assessed individually — but disclosure is almost always better than waiting for CRS/FATCA data to surface the asset.
How long is the window open?
The scheme runs for six months from its notified start date. Because it is a fixed, non-extendable window by design, returnees should begin mapping their foreign assets now rather than waiting.
The bottom line for UAE returnees
Act now — a flat Rs 1,00,000 (Category B) or a 60% settlement (Category A) with statutory immunity and permanent finality. Or wait — a Rs 10,00,000-per-year Schedule FA penalty, exposure of up to 120% under the Black Money Act, and the real risk of prosecution once CRS/FATCA data reaches the assessing officer. The window is six months and it will not be extended.
Disclose under FAST-DS before the window closes. Regi Tom Antony & Associates advises returning NRIs across the UAE, USA, UK, Singapore, Australia, Canada and the wider GCC on foreign-asset disclosure, Schedule FA compliance, RNOR planning and Black Money Act exposure. We will map your foreign footprint, determine your correct FAST-DS category, compute the charge and file your declaration within the window. Book a confidential FAST-DS consultation — write to letstalk@rtaandassociates.com or visit rtaandassociates.com. Our cross-border team is based in Kochi (Kakkanad).
This article is for general information and reflects the FAST-DS provisions as announced in Budget 2026. It is not tax advice. Scheme operation depends on the final notified rules and Official Gazette dates; please obtain advice on your specific facts before acting.