FAST-DS 2026 for US-Based Indians With Foreign Assets

You worked in the US, kept your US bank account and received shares from your employer. Now you live in India again. Or you still live in the US but have filed Indian tax returns in the past. Do you need to do anything about those accounts or shares in India?

Start with three questions. Which years were you a tax resident of India? Where did the money come from? What did you report in your Indian tax return?

What is FAST-DS 2026?

India’s Foreign Assets of Small Taxpayers Disclosure Scheme, or FAST-DS 2026, gives eligible taxpayers a one-time opportunity to declare certain foreign assets or foreign income left out in past years. It covers eligible cases up to the year ended 31 March 2026. The Income Tax Department lists 31 December 2026 as the deadline to submit and verify Form 1. Income Tax Department

Does it apply if you live in the US now?

Your Indian tax residency can change from year to year. Check your status when you bought or received the asset, when it earned income, and when India required you to report it. Someone living in the US today may still need to review an earlier Indian return. Someone who moved back to India may have had different reporting duties in their first few years back. Income Tax Department

Schedule FA is the foreign assets section of the Indian tax return. It generally applies to people who are resident and ordinarily resident in India. Non-residents and residents who are not ordinarily resident, known as RNORs, generally skip this schedule. Check the Indian tax treatment of any interest, dividends or other income separately. Your US tax return can help establish what you earned and what tax you paid. incometax.gov.in

How much could you pay under FAST-DS?

The ₹1 lakh fixed fee may apply to a foreign asset left out of your Indian return if you bought it with qualifying foreign income earned while you were non-resident in India, or with income you had already offered to tax in India. The total value of assets in this category must be ₹5 crore or less under the scheme’s valuation rules. incometaxindia.gov.in

The 60% payment route may apply to a foreign asset whose source you cannot satisfactorily explain, or to foreign income that was taxable in India and left out. The total value of the undisclosed assets and income in this category must be ₹1 crore or less. incometaxindia.gov.in

Suppose you bought US shares with salary earned abroad while you were non-resident in India. Later, you became resident and ordinarily resident in India and left those shares out of Schedule FA when you were required to report them. If the shares are worth ₹30 lakh under the scheme’s rules and meet the other conditions, the ₹1 lakh fee may apply. If you also left out ₹1 lakh in dividends that were taxable in India, check those dividends separately. If they qualify under the 60% route, the payment on the dividends would be ₹60,000. Income Tax Department

What does the ₹20 lakh relief cover?

The ₹20 lakh relief under the Black Money Act applies to specified penalties and prosecution provisions for asset reporting. It looks at the combined value of covered foreign assets and excludes foreign land and buildings. Check any reporting duty and any taxable foreign income separately. incometaxindia.gov.in

What should you check before filing?

Collect your travel dates, US bank and brokerage statements, employer stock records, and Indian and US tax returns for the relevant years. Identify what was left out and check eligibility before choosing a category. The scheme excludes certain cases, including income or assets for a year for which an assessment under the Black Money Act has already been completed. Income Tax Department

Use the scheme’s rules to value assets as of 31 March 2026. For a bank account, the calculation generally starts with deposits from the date the account opened up to that date, with adjustments where the rules allow. You may need the account history even if there is very little money in it today. Income Tax Department

If you qualify and choose to use the scheme, submit and verify Form 1. The department tells you what to pay in Form 2. Pay within the applicable time, report the payment in Form 3, and keep Form 4, which certifies the declaration and payment. The normal payment period is two months from the end of the month in which you receive Form 2. The scheme’s protection applies to the income or assets validly declared and paid for under its terms. Income Tax Department

How ARK can help if you live in the US

Whether you are staying in the US, moving back to India or doing business in both countries, ARK Advisors LLP can help with the Indian side of your planning.

• Indian income tax and wealth planning. Review your Indian tax residency, returns and foreign asset reporting. Plan for Indian taxes on your investments, capital gains and inherited assets. Share the same facts with your US tax adviser for US reporting. Indian income tax services · Tax planning
• Buying or selling property in India. If you are buying, check the seller’s tax residency and the TDS you must deduct before paying an advance. If you are selling from abroad, review your capital gains, eligibility for a lower or nil TDS certificate, and the paperwork for sending the sale proceeds abroad. NRI property TDS guide · Lower TDS assistance
• Setting up a company in India. If you are a US-based founder or company, we can help you choose an Indian entity structure, incorporate and plan the filings that follow. Indian subsidiary registration

For a tax review, tell us when you moved and which return years you want to check. For an Indian property deal or company setup, share what you are planning and when. Contact ARK Advisors LLP