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

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.