The Income Tax Department has begun nudging taxpayers who hold residential and commercial properties abroad, including in the UAE, to disclose previously unreported foreign assets and income under a one-time amnesty scheme, official sources said.
The department is taking several measures to provide eligible taxpayers with information on their overseas assets under the Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), which offers a one-time opportunity to regularise undisclosed foreign assets and income.
“The department has recently nudged select taxpayers who have invested in residential and commercial properties in the UAE. The CBDT has also constituted a committee in each region under the principal chief commissioner to help taxpayers resolve their queries and concerns,” Finance Ministry sources said.
While the scheme covers undisclosed foreign assets, the focus on the UAE reflects the significant investments made by Indians in the country's real estate market. According to Anarock, Indian nationals account for around 20-22% of all foreign property purchases in Dubai. Industry estimates suggest that Indian investors buy properties worth Dh35-40 billion annually in the emirate.
Around 1,100 taxpayers have filed applications under FAST-DS, according to official sources.
The Income Tax Department has also enabled taxpayers to view and download information about foreign assets reported against their Permanent Account Numbers (PANs) by foreign jurisdictions through the automatic exchange of information framework, including the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
However, the information available on the e-filing portal is limited to data received under the CRS and FATCA frameworks. The department also receives information through other multilateral arrangements, some of which has not been displayed on the portal due to risk considerations or non-disclosure commitments, the Ministry said.
The department plans to share such additional information with relevant taxpayers wherever possible, allowing them to make declarations under FAST-DS, sources said.
Under the scheme, eligible taxpayers can disclose foreign assets and income by paying tax at 30% of the fair market value of the assets, along with an equal amount as penalty. A valid declaration will protect taxpayers from further assessment, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Taxpayers can also disclose assets and income that have already been accounted for by paying a fee of Rs 1 lakh to avoid the penalty of Rs 10 lakh for each year prescribed under the Black Money Act.