Taxpayers get immunity: I-T Department launches 60% tax FAST-DS for hidden foreign wealth
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Why in news
The Income Tax Department launched the FAST-DS scheme to encourage small taxpayers to voluntarily disclose hidden foreign assets in exchange for immunity from prosecution.
Background
The FAST-DS scheme allows taxpayers to declare undisclosed foreign assets by paying an effective tax of 60%. It is active from August 16, 2026, to December 31, 2026, with specific thresholds of ₹1 crore and ₹5 crore.
Facts for Prelims
- BodyIncome Tax Department: Responsible for administering direct taxes in India.
- FactFAST-DS Scheme: Effective tax rate for voluntary disclosure is 60%.
- FactFAST-DS Scheme: Disclosure window is open until December 31, 2026.
- Act / BillBlack Money Act: The primary legislation under which penalties and prosecutions for undisclosed foreign assets are governed.
For Mains
Q. Discuss how voluntary disclosure schemes like FAST-DS can enhance tax compliance and curb money laundering in India.
Dimensions to cover in your answer
- revenue mobilization
- deterrence of black money
- voluntary compliance vs. punitive measures
Keywords: voluntary disclosure · tax compliance · money laundering · revenue mobilization · immunity
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