FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?

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This discussion raises concerns about the FAST-DS 2026 tax disclosure scheme, particularly regarding the lack of recourse or support for declarants. A user highlights that fees and penalties paid are non-refundable and questions the process for declaring foreign bank accounts when pre-2018 statements are unavailable due to bank retention policies. The scheme appears rigid, with no clear mechanism for addressing queries or providing alternative documentation options, potentially leading to lost funds if a declaration is rejected without explanation.

Mohan

Mohan (Querist)
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11 September 2026 Hello Experts -

This is a question from a lay person regading the recently (CG-DL-E-15082026-275490) introduced FAST-DS 2026 scheme.
Here it mentions that any money paid by a declarant via the scheme (fee/penalty etc for disclosure) is non refundable, cant be set off etc.
Question:
For person declaring a bank a/c under this scheme, the requiement is 'Sum of all deposits'. A person who had this a/c a decade ago was informed by the foreign bank that the retention policy meant that the statements are only available after 2018.
The rules just ask for supporting documentation but theres no room for variation when reporting 'sum of all deposit' for bank account, an alternative was not provided in the rules. (though it was provided during a similar scheme in 2015) ie, Question 5. https://www.incometaxindia.gov.in/documents/d/guest/circular15_2015-pdf

Main part -
SInce there's no refund, & no mention of a provision/mechanism (like e-campaign for taxes) for a declarant to answer queries that the dept might have about a declaration made by a person., the person has no alternative but to declare pay the amount and then hope it is approved (since there;s no mention of 'Best estimate' alternate for 'sum of all deposits' like the scheme in 2015)?
From the way it is framed (atleast to a lay person) it looks like there's no support or explanation mechanism mentioned in the scheme for edge cases, so after paying the dialog is closed and if it is rejected for whatever reason, the person filing wont know the reason and most importantly the money will be lost.
Can an expert or someone who is reasonably familiar with law-speak please reply if this is as rigid and recourseless as it appears to be.

Thanks in advance for your expertise

Aashok Kumar Sharma

Aashok Kumar Sharma

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11 September 2026 If pre-2018 foreign bank statements are unavailable due to bank retention limits, file Form 1 using available statements (2018 onward) backed by an official bank retention certificate, secondary funding records (e.g., LRS remittances), and a sworn affidavit. Under FAST-DS 2026, the process moves from Form 1 to Form 2 (where the tax authority confirms the exact payable amount) before you make any payment in Form 3, protecting good-faith declarants from unexplainable rejections or lost funds.

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Mohan

Mohan (Querist)
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11 September 2026 Thanks for your expertise and response Mr Sharma

In plain words, what if the Dept asks for payment, payment is made by the taxpayer and then the declaration is voided for some reason. Shouldnt payment be requested afte r apprroval is confirmed?

The other nuance is whether the scheme has a mechanism for the declarant to provide response/substantiation incase the dept has queries, the concern here is a declaation being at the risk of rejection for something that a declarant wont have the opportunity to explain because on the surface of it all, there dosnt appear to be a provision for it.

I do have an official email from a bank higher up confirming exactly the date from when the a/c statements are available, the email includes my a/c # as an identifier too. can I include that. Thanks for your input, looking forward to your response

Mohan

Mohan (Querist)
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27 September 2026 Thanks for your expertise Mr SHarma - In plain words, what if the Dept asks fo payment, then payment is made by taxpayer and after that the declaration is voided for some reason. Shouldnt payment be requested after approval is confirmed? Your thoughts are much appreciated

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