- FAST-DS values a bank account at the sum of all deposits, not the balance.
- Deposits from non-resident earnings or taxed income: ₹1 lakh flat; from untaxed income: 60%.
- Under ₹20 lakh of non-property foreign assets, the ₹10 lakh penalty generally does not apply; still report them.
The sum-of-deposits rule
For FAST-DS, a bank account is valued at the total of all deposits made into it from the day it was opened up to 31 March 2026, not its balance. Deposits made out of withdrawals from the same account are excluded. The total converts to rupees at the RBI reference rate on 31 March 2026.
| Example | Amount |
|---|---|
| Balance on 31 March 2026 | US$ 4,900 |
| Total deposits since the account was opened (salary, transfers) | US$ 60,000 |
| Value for FAST-DS | US$ 60,000, converted at the RBI reference rate |
That is why the choice of category matters so much: in Category 1 you pay 60% of the deposits; in Category 2 a flat ₹1 lakh.
Which category
- Deposits came from money earned while you were a non-resident (a job or internship abroad), or from income already taxed in India: Category 2, flat ₹1 lakh, if your foreign assets total up to ₹5 crore.
- Deposits came from income that should have been taxed in India but was not: Category 1, 60%, up to ₹1 crore together with any undisclosed income.
Small, dormant accounts
Since 1 October 2024 the ₹10 lakh Black Money Act penalty for leaving foreign assets out of Schedule FA does not apply where your foreign assets other than immovable property total ₹20 lakh or less. You must still report them. For a genuinely small account funded from taxed or non-resident income, reporting it correctly from now on may be enough; for anything larger or unclear, FAST-DS gives certainty.
What to do
- Download statements from account opening to 31 March 2026.
- Identify the source of each major deposit.
- Decide the category and compute the value.
- File Form 1 by 31 December 2026, pay after Form 2, file Form 3.
- Report the account in Schedule FA from now on, or close it.
Sources
- TaxGuru: FAST-DS 2026 FAQs (valuation of bank accounts)
- Business Today: relief from penalty for small foreign assets (₹20 lakh)
- Income Tax Department: FAST-DS FAQs (13 August 2026)
Frequently asked questions
How is a foreign bank account valued under FAST-DS?
Do I need FAST-DS for a small foreign bank account?
Which FAST-DS category applies to my student or work account abroad?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.