FAST-DS 2026 applicability: foreign employee shares already disclosed in Schedule FA

620 views

Save Share

Join Us Follow Us Add as Source

manoj sharma

21 Points Posted on 15 October 2026

I would appreciate views from CAs/tax professionals experienced in Schedule FA, foreign ESOPs and the Black Money Act.

Facts:

I am an Indian resident taxpayer.

I received a very small number of Siemens AG shares under an employee profit-sharing/share plan.

Employer Form 16/Form 12BA reported the stock-option perquisite value of approximately ₹25,502 and it was included in taxable salary.

In AY 2019-20, I filed ITR-2 and expressly disclosed the foreign financial interest in Schedule FA: Siemens Aktiengesellschaft, Germany, beneficial owner, investment ₹25,502 and income ₹0.

I sold the entire holding in January 2020. Bank inward-remittance documentation identifies the receipt as “Sale of ESOPs”. Proceeds were approximately ₹20,375, so there appears to have been a loss rather than a taxable gain.

For AY 2020-21, I mistakenly filed ITR-1. At that time I believed that since the shares had been sold at a loss, there was nothing further to report. Consequently, the foreign-share sale/capital loss and any applicable Schedule FA particulars were not reported in that return.

Foreign Asset Information for CY 2022 subsequently shows flatexDEGIRO Bank AG with €0 balance and NIL interest/dividend/gross proceeds/other payments.

I have now received the automated FAST-DS 2026 advisory. It expressly states that it is an advisory and not a legal notice. There is presently no e-Proceeding/e-Campaign concerning this transaction.

Questions:

A. Does the AY 2020-21 omission fall within Section 133, Table Sl. No. 2(b) of FAST-DS 2026 even though the underlying foreign asset had already been expressly disclosed in Schedule FA in AY 2019-20?

B. If technically eligible under Category 2, is there any reason I should voluntarily opt for FAST-DS and pay the ₹1 lakh fee?

C. How does the ₹20 lakh exception in the proviso to Section 43 of the Black Money Act apply to this ₹25,502 foreign shareholding?

D. Please also consider Rule 3(2) of the FAST-DS Rules, 2026, because the shares were transferred before 31 March 2026.

I am specifically trying to distinguish between:

taxable capital gain/loss;

incorrect ITR form/reporting omission;

Schedule FA non-reporting;

BMA penalty exposure; and

voluntary FAST-DS eligibility.

I would particularly appreciate responses based on the current statutory provisions after the 2024/2026 amendments rather than general advice

about foreign assets.

Replies (3)

Quick Summary

This discussion addresses concerns regarding the FAST-DS 2026 advisory for foreign employee shares previously disclosed in Schedule FA. The user seeks clarity on whether an omission in the AY 2020-21 tax return, due to selling shares at a loss, triggers FAST-DS penalties, especially since the asset was initially declared. Expert views are sought on the applicability of Section 133, the Black Money Act threshold, and the value of voluntarily opting for FAST-DS given the asset was sold prior to 31 March 2026.

Aashok Kumar Sharma

Finance/Compliance Consultant

70435 Points Posted on 15 October 2026

The taxpayer has no tax liability or Black Money Act exposure regarding the Siemens AG shares, as the asset value was well below the ₹20 lakh statutory threshold and the original acquisition was disclosed in Schedule FA. The omission in AY 2020-21 is merely a procedural reporting error resulting from an incorrect ITR form filing upon selling at a loss, making a voluntary ₹1 lakh FAST-DS payment unnecessary.

Tax Garden

Tax Consultant

2056 Points Posted on 21 October 2026

The three questions here need to be kept apart.

1. Black Money Act penalty. The Rs 10 lakh penalty under Section 43 for not reporting a foreign asset is not attracted where the aggregate value of foreign assets other than immovable property is Rs 20 lakh or less (amendment effective 1 Oct 2024). So the first thing to pin down is the value of the holding in the relevant year. If it was well under Rs 20 lakh, penalty exposure for Schedule FA non-reporting is small.

2. The omitted sale. A loss sale is not a tax liability, but it is still a capital gains entry missing from the AY 2020-21 return. Please check two points:
- Schedule FA for AY 2020-21 covers calendar year 2019, so the shares held in 2019 belonged in that return, not only the AY 2019-20 one.
- An updated return under Section 139(8A) is limited to 48 months from the end of the assessment year, so AY 2020-21 is out of window. It also cannot be used to claim a loss or refund.

3. Whether FAST-DS is worth Rs 1 lakh. The Category B flat fee is meant for assets bought from income already taxed in India but left out of Schedule FA. The declaration values assets as on 31 March 2026, and your client's shares were sold in 2020. Whether an asset already disposed of can be declared is something to read in the scheme Rules and the Finance Act 2026 text, not assume. If it cannot be declared, paying Rs 1 lakh for a small, loss-making position makes little sense.

I would also not rely on a plain "no exposure" view without seeing the year-wise values and the ITR filed. If there is any assessment or notice pending for AY 2020-21, treat it differently. This is general, please confirm against the Act and Rules text for the specific case. - a practising professional

Thinking Bridge

Practical Finance Training

244 Points Posted on 21 October 2026

One technical point worth considering is Rule 3(2) of the FAST-DS Rules, 2026. Where foreign shares were transferred before 31 March 2026, their scheme value is generally the higher of their acquisition cost and the sale consideration received. If transferred without consideration or for inadequate consideration, the higher of acquisition cost and fair market value on the transfer date applies. Therefore, the Siemens AG shares sold in January 2020 cannot automatically be assigned nil value merely because they were no longer held on the valuation date.
Further, if the sale proceeds were reinvested in another foreign asset, Rule 3(3) should also be examined to determine whether an adjustment is required to avoid double-counting.
The prescribed valuation and currency-conversion rules should be applied to the actual records before determining the value relevant to the scheme.