Representation Seeking Early Notification of FAST-DS and Implementation Framework

Background and Context

The Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS), was introduced through Chapter IV (Sections 130 to 144) of the Finance Act, 2026 following the Union Budget announcement on 1 February 2026. The Scheme was designed as a one-time, voluntary disclosure mechanism to regularise foreign assets of eligible assessees, particularly smaller assessees, in a fair and structured manner.

Despite having been duly enacted by Parliament as part of the Finance Act, 2026, the Scheme has not yet been brought into force. No notification under Section 130(2) has been issued, and there is no supporting framework in the form of rules, prescribed statutory forms, or an online declaration facility.

A detailed representation dated 22 July 2026 has therefore been addressed to the Hon’ble Union Minister of Finance, requesting immediate steps to implement the Scheme in line with the statutory mandate and the clear legislative intent.

Core Request in the Representation

The representation is addressed to:

Smt. Nirmala Sitharaman, Hon’ble Union Minister of Finance, Government of India, 15074-15075, 5th Floor, B-Wing, Kartavya Bhawan – 1

and seeks the following:

  1. Issuance of notification under Section 130(2) of the Finance Act, 2026 to bring the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026 (FAST-DS) into effect.
  2. Framing and publication of rules as contemplated under Chapter IV of the Finance Act, 2026.
  3. Prescription of statutory forms required for filing declarations under the Scheme.
  4. Enabling of electronic filing of declarations on the Income Tax e-Filing Portal.

The representation emphasises that without these steps, the Scheme remains purely notional and cannot be availed by any eligible assessee.

Non-Operational Status of FAST-DS

Time Elapsed Since Enactment

  • The Scheme was part of the Finance Act, 2026, passed after the Union Budget of 1 February 2026.
  • More than five months have elapsed since the proposal of the Scheme.
  • Over three and a half months of AY 2026-27 have already passed.

Yet, as of the date of the representation:

  • No notification has been issued to bring Chapter IV (Sections 130 to 144) into force.
  • No rules have been notified.
  • No declaration forms have been prescribed.
  • No module or facility has been enabled on the Income Tax e-Filing Portal for making declarations.

Consequence of Non-Notification

Due to this inaction:

  • The Scheme technically exists in the statute but is practically unusable.
  • Eligible assessees are unable to regularise their foreign assets through this intended amnesty route.
  • The beneficial objective of the legislation is effectively frustrated.

The representation underscores that a beneficial scheme, intended by Parliament to incentivise voluntary disclosure, has been rendered ineffective solely because of the absence of notification and administrative follow-through.

Parallel Proceedings Under Existing Laws

Continuing Action by the Income-tax Department

Even after the enactment of FAST-DS, the Income-tax Department is:

  • Issuing notices; and
  • Initiating, continuing, and even completing assessments or reassessments

in relation to undisclosed foreign assets under:

  • The Income-tax Act, 1961 (IT Act); and
  • The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (BMA).

Impact on Eligible Assessees

Because there is no framework to first allow eligible assessees to opt into FAST-DS: