The department announced the development on September 1, saying Form 1 is now available for taxpayers seeking to make a disclosure under the scheme. The portal has listed the form under e-File → Income Tax Forms → File Income Tax Forms → Other Acts → Foreign Assets of Small Taxpayers Disclosure Scheme, 2026.
The development marks the operational rollout of the disclosure mechanism after the government notified the detailed FAST-DS rules in August.
The Foreign Assets of Small Taxpayers–Disclosure Scheme Rules, 2026 were notified on August 14 and came into force on August 16. The rules prescribe the forms, valuation methodology and payment process for eligible taxpayers.
What is FAST-DS 2026?
FAST-DS was introduced through the Finance Act, 2026 as a one-time compliance window for eligible taxpayers to disclose specified foreign assets and foreign income that were not appropriately reported.
The rules set March 31, 2026 as the valuation date and December 31, 2026 as the last date for making a declaration under the scheme.
Form 1 requires taxpayers to provide details of the declarant and the foreign asset or income being disclosed. The form covers categories including undisclosed foreign assets, undisclosed foreign income and certain foreign assets that were not reported in the relevant income-tax return despite being acquired from specified sources.
The scheme covers various types of foreign assets, including bank accounts, immovable property, jewellery, artistic works, shares and securities and other assets.
Four forms prescribed
The rules provide for a four-stage electronic process.
Form 1 is the declaration submitted by the taxpayer. The income-tax authority subsequently issues Form 2, specifying the amount payable. The taxpayer then submits payment details through Form 3, along with proof of payment.
Form 4 is issued to certify the validity of the declaration and payment.
The rules provide that the amount determined by the tax authority is generally payable within two months from the end of the month in which the order is received. A further period of up to two months is available with additional interest of 1% for every month or part thereof of delay.
The Income Tax Department has also said that detailed information and filing guidance for FAST-DS 2026 is available through the e-filing portal.
The opening of Form 1 filing is therefore the latest operational step in implementing FAST-DS 2026. The underlying scheme and detailed rules were already notified in August.
