Taxpayers get immunity: I-T Department launches 60% tax FAST-DS for hidden foreign wealth

Why in news

The Income Tax Department launched the FAST-DS scheme to encourage small taxpayers to voluntarily disclose hidden foreign assets in exchange for immunity from prosecution.

Background

The FAST-DS scheme allows taxpayers to declare undisclosed foreign assets by paying an effective tax of 60%. It is active from August 16, 2026, to December 31, 2026, with specific thresholds of ₹1 crore and ₹5 crore.

Facts for Prelims

• BodyIncome Tax Department: Responsible for administering direct taxes in India.
• FactFAST-DS Scheme: Effective tax rate for voluntary disclosure is 60%.
• FactFAST-DS Scheme: Disclosure window is open until December 31, 2026.
• Act / BillBlack Money Act: The primary legislation under which penalties and prosecutions for undisclosed foreign assets are governed.

For Mains

Q. Discuss how voluntary disclosure schemes like FAST-DS can enhance tax compliance and curb money laundering in India.

Dimensions to cover in your answer

• revenue mobilization
• deterrence of black money
• voluntary compliance vs. punitive measures

Keywords: voluntary disclosure · tax compliance · money laundering · revenue mobilization · immunity

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