The Income Tax Department has reached out to select taxpayers who hold undisclosed residential and commercial properties in the UAE, nudging them to declare these foreign assets under the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS). The outreach, confirmed by Finance Ministry sources, represents a targeted compliance push ahead of the scheme's 31 December 2026 deadline.

How FAST-DS Works

The scheme offers a one-time, time-bound window for taxpayers to regularise undisclosed overseas assets. To do so, a declarant must pay 30% tax on the fair market value of the asset, along with an equal penalty — effectively a 60% combined outgo on the declared value. A valid declaration grants full immunity from further assessment, penalty, and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, commonly known as the Black Money Act.

For taxpayers with unaccounted assets or income, the scheme also allows reporting on payment of a ₹1 lakh fee, helping them sidestep the ₹10 lakh annual penalty prescribed under the Black Money Act. The entire process is fully online, trust-based, and self-declaratory — removing the need for physical hearings or direct interaction with tax officers.

Uptake and Deadline

Approximately 1,100 taxpayers have filed applications under the scheme so far, according to Finance Ministry sources. The window remains open until 31 December 2026. Officials reportedly expect uptake to accelerate as the deadline approaches, particularly among those who have already been individually contacted by the department.

Information Sharing Under AEOI Framework

To facilitate disclosures, the department has enabled a feature on the e-filing portal that allows taxpayers to view and download foreign asset information reported against their PAN by overseas jurisdictions under the Automatic Exchange of Information (AEOI) framework — widely known as CRS/FATCA. This data covers a three-year period from 2022 to 2024.

Notably, information received under other multilateral frameworks has not been made visible on the portal owing to risk considerations and non-disclosure commitments. However, in a high-level meeting on 23 October, the department decided to share such additional information with relevant taxpayers wherever feasible, to help them make use of the scheme before the deadline closes.

Outreach and Institutional Support

The Central Board of Direct Taxes (CBDT), the apex body overseeing the Income Tax Department, has constituted a dedicated committee in each region under the Principal Chief Commissioner to address taxpayer queries. Planned outreach programmes will cover corporates, educational institutes, professional bodies, and industry associations. This comes amid India's broader crackdown on undisclosed offshore wealth, which has intensified since the Black Money Act came into force over a decade ago.