New Delhi, Sept. 4 -- Indian residents who hold shares in foreign companies, have overseas bank accounts or earn income abroad, are required to disclose these details in Schedule FA of their Income Tax Return (ITR). Failure to do so can lead to hefty penalties and, in some cases, prosecution.

Taxpayers who have missed such disclosures in previous returns now have two routes to rectify the omission: Filing an updated return (ITR-U) or opting for the Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS).

Which option is more suitable depends on factors such as the nature and value of the foreign asset or income, the assessment year in which it went unreported and the additional tax liability involved.

While both options a...