CA Siddesh Gaddi & Co., by representation dated 22 July 2026, requested the Union Finance Minister to operationalise the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) by issuing the notification under Section 130(2) of the Finance Act, 2026, framing rules, prescribing statutory forms, and enabling declarations on the Income Tax e-Filing Portal. The representation states that although FAST-DS, comprising Sections 130 to 144 of the Finance Act, 2026, was enacted as a voluntary disclosure scheme, it remains non-operational, with no notification, rules, forms, or filing mechanism. It further states that the Income-tax Department continues to issue notices and conduct proceedings under the Income-tax Act, 1961 and the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, while eligible taxpayers cannot avail the Scheme. The representation also refers to the exclusions under Section 140, seeks clarifications on provisions in Section 133 relating to monetary thresholds, valuation dates, penalty computation, eligible sources of income, and requests directions against redundant proceedings. It also highlights uncertainty for taxpayers considering options under Sections 119(2)(b) and 139(8A) of the Income-tax Act or awaiting operationalisation of FAST-DS. The full text of the representation is reproduced below.
To,
Smt. Nirmala Sitharaman,
Hon’ble Union Minister of Finance,
Government of India,
15074-15075, 5th Floor, B-Wing, Kartavya Bhawan – 1
Respected Minister,
Subject: Request to notify as per Section 130(2) of the Finance Act, 2026 and enable the facility for filing declarations under the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 [FAST-DS]
1. With reference to the above subject, we wish to bring to your kind attention a practical difficulty being faced by taxpayers and professionals in relation to declarations to be made under the FAST-DS.
2. The Scheme, introduced as Chapter IV (sections 130 to 144) of the Finance Act, 2026 pursuant to the Union Budget presented on 1 February 2026, was widely welcomed as a balanced and pragmatic measure.
3. Although the Scheme was enacted by Parliament as a beneficial measure to facilitate voluntary disclosure of foreign assets by eligible taxpayers, it continues to remain wholly non-operational. More than five months have elapsed since its proposal and more than three and a half months have passed in AY 2026-27; yet no notification bringing the Scheme into force has been issued, no rules have been framed, and no statutory forms have been prescribed. Consequently, while the Scheme exists on the statute book, it remains incapable of being availed by any eligible taxpayer.
4. Notwithstanding the enactment of the Scheme, the Income-tax Department continues to issue notices and/or initiate and complete re/assessment proceedings in relation to undisclosed foreign assets under the Income-tax Act, 1961 (IT Act) as well as the BMA. In the absence of any mechanism enabling eligible assessees to first avail the benefits of the Scheme, such proceedings effectively deprive them of the statutory opportunity for voluntary disclosure contemplated by Parliament and is also causing a lot of uncertainty due to redundant exercise. The beneficial object underlying the enactment is thereby rendered illusory, and the legislative intent stands defeated solely on account of the continued failure to operationalise the Scheme.
5. As per Section 140, the Scheme stands excluded in only two categories, namely:
a) any income or asset which represents, directly or indirectly, proceeds of crime in respect of which proceedings have been initiated or are pending under the Prevention of Money-laundering Act, 2002; and
b) any income or asset relating to an assessment year for which assessment proceedings have been completed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [BMA].
6. As evident from the above, the benefit of this scheme will not be available if the proceedings have been concluded under the BMA Act.
7. Further, there is a need to notify the rules, as required under the statute, and issue FAQs. In addition to the above, clarity can be provided with respect to the following items in the table provided under Section 133:
- With respect to the condition prescribed under Sl. No.1(4) relating to the monetary threshold of ₹1 crore, whether the said limit is to be considered separately for each AY or as a consolidated limit for all the AYs involved;
- Similarly, under Sl. No.2(4) of the said table, the condition dealing with monetary limit can be clarified as to the date when the valuation is required.
- Also, with respect to Sl. No.2(3) of the said table, clarification may be provided whether the penalty prescribed therein is leviable separately for each year of default or is to be computed on a consolidated basis.
- The scope/source of income used to acquire assets located outside India, as listed in Sl. No. 2(a) and (b) of the said table, can be expanded to include acquisition out of income which has been offered to tax under the Income-tax Act, 1961, by a non-resident. Similarly, the scope can further be expanded to include source income accruing or arising outside India in the case of a resident.
- Directions to the authorities to refrain from redundant proceedings.
- Such other clarification as may be deemed appropriate.
8. The delay in notification and other statutory actions under the statute is also leading to confusion among the assessees who wish to be compliant and have the following options:
- Filing a return of income and paying taxes under the provisions of the IT Act, by availing the option under Section 119(2)(b) / 139(8A), etc.;
- Awaiting conclusion of proceedings under the BMA Act;
- Awaiting the scheme to be operationalized and to pay appropriate amounts thereunder to avail the benefit of the amnesty scheme.
9. In view of the above, we earnestly request your good office to kindly direct the concerned authorities to operationalise the FAST-DS, at the earliest, by issuing the notification bringing the Scheme into force, framing the requisite rules, prescribing the statutory forms, and enabling the necessary filing mechanism on the Income Tax e-Filing Portal. This would ensure that eligible taxpayers across the country are afforded a fair and meaningful opportunity to avail the beneficial Scheme in the manner intended by Parliament, before any further proceedings are initiated or concluded against them.
We shall be grateful for your kind intervention and an early resolution in this regard.
Thanking you,
Yours faithfully,
CA Siddesh Gaddi
CA Siddesh Gaddi & Co., Chartered Accountants
(F.R. No. 023381S)
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