Income Tax Department releases draft rules for Income Tax Act 2025, reduces rules from 511 to 333 and forms from 399 to 190

FAST-DS 2026: Income Tax Dept Nudges Taxpayers to Disclose Foreign Assets by Dec 31

The Income Tax Department has begun emailing taxpayers who may hold undisclosed foreign assets, urging them to use the FAST-DS 2026 disclosure window (open till Dec 31, 2026). This one-time compliance scheme is crucial for small taxpayers like students, NRIs, and tech employees holding ESOPs or overseas accounts, with penalties up to ₹1 lakh or 30% tax plus additional tax.

CBDT's SAKSHAM NUDGE Campaign: ₹9,493 Cr Additional Tax from 1.25 Cr Updated ITRs

The CBDT's NUDGE campaign (now SAKSHAM NUDGE) has yielded ₹9,493 crore in additional tax from 1.25 crore updated ITRs in FY 2024-25 and 2025-26. This data-driven, non-intrusive compliance approach is a major shift from post-facto enforcement to preventive tax collection, a key theme for UPSC GS3 (Tax Reforms) and Banking exams.

ED Registers 1,080 PMLA Cases in FY 2025-26, Conviction Rate at 0.93% Over 5 Years

ED registered 1,080 PMLA cases in FY 2025-26 — a four-year high — but conviction rate remains abysmally low at 0.93% (43 cases in 5 years). Income Tax Department also filed 2,127 prosecution cases with high acquittal rates. This data, tabled in Parliament, highlights enforcement effectiveness vs. judicial outcomes — a key UPSC/Banking exam topic.

FAST-DS: Govt's New Foreign Assets Disclosure Scheme Imposes Rs 1 Lakh Fee, Raises Disproportionate Penalty Concerns

The government's Foreign Assets of Small Taxpayers – Disclosure Scheme (FAST-DS), launched on August 16, 2026, requires a flat Rs 1 lakh fee for disclosing undisclosed foreign assets up to Rs 5 crore. This has sparked concerns among salaried employees with ESOPs or small US stock investments, who find the fee disproportionate to the asset value and argue it penalizes honest taxpayers. The scheme aims to regularize non-disclosure but clashes with the Black Money Act's provisions.

CBDT Notifies FAST-DS: One-Time Voluntary Disclosure for Undisclosed Foreign Assets Up to Rs 5 Crore

The government has notified FAST-DS, a one-time voluntary disclosure window for small taxpayers to declare undisclosed foreign assets up to Rs 5 crore, with immunity from penalty and prosecution. This is crucial for exam aspirants as it tests understanding of the Black Money Act, CBDT powers, and compliance mechanisms for foreign assets.

Govt Proposes Gold Monetisation via Jewellers: 20,000 Tonne Idle Gold, Demat Deposits, Interest Income

The government is planning a new gold monetisation scheme where jewellers, not banks, will collect physical gold deposits from households, issue demat receipts, and pay interest. This aims to unlock over 20,000 tonnes of idle gold, improve India's trade balance, and reduce import dependence — a key reform for economic stability and current account management.

MoSPI Considers Diary-Based HCES for High-Income Households to Tackle 9.8% Urban Non-Response Rate

To counter rising non-response from affluent households in gated societies, MoSPI is piloting a 'diary-based' self-reporting method for the next Household Consumption Expenditure Survey (HCES) in 2027-28. This shift is critical because the HCES data directly impacts CPI basket weights, inflation targeting by RBI, and policy making, but raises concerns about data comparability due to differential recall errors between survey methods.

Nestle Seeks Industry Consultation on India's Front-of-Pack Food Labelling Rules; SC Slams Delays

Nestle CEO has urged the Indian government to consult the food industry before finalizing front-of-pack warning labels for high fat, sugar, and salt products. This comes after the government dropped a similar proposal in March following opposition from companies like Coca-Cola, and the Supreme Court slammed the delay. The debate highlights the conflict between public health interests and corporate influence in India's $100 billion packaged food market.