If you are a tech professional in Bengaluru holding foreign RSUs, a former student who left a bank account open abroad, or an NRI who recently relocated back to India, the 2026 Union Budget has a crucial update for you. 
The government has launched the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS 2026). This one-time, 6-month amnesty window allows resident Indians to declare previously undisclosed overseas income or assets without facing the severe penalties and prosecution normally mandated by the Black Money Act (BMA). 
Here is exactly how the scheme works, who qualifies, and what it will cost to regularize your tax status.
What is the FAST-DS 2026 Scheme?
Historically, failing to disclose a foreign asset—even an unused bank account or company ESOPs—attracted a flat penalty of ₹10 Lakh per year and potential criminal prosecution, regardless of whether the omission was intentional evasion or a genuine mistake. 
Recognizing that many small taxpayers simply misunderstood the complex Schedule FA reporting rules, the government introduced FAST-DS 2026. This scheme splits non-compliance into two specific categories: 
Category A: Undisclosed Foreign Income or Assets (Tax Evasion)
This applies if you earned income abroad or acquired an asset and never paid tax on it in India. 
•    Eligibility Limit: The total value of the undisclosed assets and income must not exceed ₹1 Crore (as of March 31, 2026). 
•    The Cost: You must pay a 30% tax on the asset's value, plus an additional 30% penalty. 
•    The Benefit: A total outgo of 60% of the asset's value, granting you complete immunity from prosecution. (For context, getting caught without this scheme results in a 120% total liability). 
Category B: Reporting Failures (Technical Defaults)
This applies if the asset was acquired legitimately—either when you were a non-resident, or using income you already paid tax on—but you failed to report the asset in Schedule FA of your Income Tax Return. 
•    Eligibility Limit: The total value of the asset must not exceed ₹5 Crore. 
•    The Cost: A flat, one-time fee of ₹1 Lakh. 
•    The Benefit: Complete immunity from the ₹10 Lakh per year penalty and prosecution. 
Try the FAST-DS 2026 Liability Calculator
Use this interactive tool to quickly estimate your financial liability under the new scheme compared to standard Black Money Act penalties:
Crucial Update: The 2026 budget also grants retroactive immunity from prosecution (effective Oct 1, 2024) if the value of your non-immovable foreign assets (like bank accounts or stocks) is less than ₹20 Lakhs. 
Why Tech Professionals & NRIs Need to Act Now
At A&D Consultancy, we see this frequently with tech employees who are granted Restricted Stock Units (RSUs) by their US-based parent companies. Many assume that because TDS was deducted when the shares vested, their compliance is complete. It is not. Holding those shares makes you the owner of a foreign asset, which must be declared in Schedule FA every single year until sold. 
Similarly, returning NRIs often leave small checking accounts open in the US or UK to handle lingering subscriptions or tax refunds. If you became a resident Indian and failed to report these accounts, you technically violated the Black Money Act.
Next Steps for Compliance
The clock is ticking on this 6-month window. If you suspect you have undeclared foreign assets:
1.    Do not panic, but do not ignore it. Gather statements for any overseas bank accounts, brokerage accounts (like E*TRADE or Morgan Stanley for RSUs), and foreign insurance policies.
2.    Determine your category. Identify whether your situation falls under Category A (tax evasion) or Category B (reporting oversight).
3.    Consult an Expert. The valuation rules for foreign assets are complex and require converting foreign currency to INR using specific telegraphic transfer buying rates (TTBR). 
If you need help navigating this one-time amnesty window, reach out to our team at A&D Consultancy. With over a decade of experience handling complex tax structures in Bengaluru, we can ensure your foreign assets are fully regularized before the window closes.