Govt. brings scheme to disclose foreign assets, Pg1

Key Highlights:

• The Income Tax Department has launched a new voluntary disclosure scheme, Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS), for certain undisclosed foreign assets and income.
• The scheme, announced in the Union Budget this year, allows taxpayers to declare these assets by paying an effective 60% tax.
• FAST-DS commenced on Sunday and will accept online declarations until December 31.
• The initiative aims to bring overseas holdings into the tax net without exposing eligible individuals to further penalties or prosecution.

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Detailed Insights:

• The scheme targets small taxpayers, including students, young professionals, technology employees, and relocated Non-Resident Indians (NRIs), who may have inadvertently failed to disclose eligible foreign assets or income.
• Under the scheme, the tax payable is 30% on the declared value, with an additional amount equal to the tax, resulting in a total levy of 60%.
• The fair market value of assets for declaration will be determined as of March 31, 2026.
• There are two categories for declarations: one for undisclosed foreign assets/income not previously offered to tax, with an aggregate value not exceeding ₹1 crore; and another for foreign assets already offered to tax or acquired as an NRI but not reported, with a threshold of ₹5 crore and a ₹1 lakh fee.
• This scheme is part of India's broader efforts to curb undisclosed foreign income and assets, following previous legislative measures.

Key Concepts Involved:

• Foreign Assets of Small Taxpayers-Disclosure Scheme (FAST-DS): A new voluntary disclosure scheme by the Indian government for small taxpayers to declare undisclosed foreign assets and income.
• Central Board of Direct Taxes (CBDT): The apex body in India responsible for administering direct tax laws and providing inputs for policy and planning of direct taxes.
• Union Budget: The annual financial statement of the Government of India, detailing its estimated receipts and expenditures for the upcoming fiscal year.
• Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015: An Indian law enacted to curb undisclosed foreign assets and income by imposing tax and penalty on such income.