The Income Tax Department has reached out to some select taxpayers who invested in residential and commercial properties in the United Arab Emirates (UAE) but may not have disclosed these assets, as the government steps up efforts to bring overseas holdings into the tax net.
According to Finance Ministry sources, about 1,100 taxpayers have filed applications under the Foreign Assets of Small Taxpayers-Disclosure Scheme, 2026 (FAST-DS) so far. The one-time voluntary disclosure window closes on December 31, 2026, giving eligible taxpayers a limited opportunity to disclose specified foreign assets or income and obtain relief from penalties and prosecution under the Black Money Act, subject to the scheme's conditions.
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The department also plans to share additional information on foreign assets with taxpayers wherever possible, the sources said.
Information on overseas assets received under the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) for 2022-2024 is available on the income tax e-filing portal.
The outreach to UAE property investors comes against increased access to overseas financial information. Taxpayers who have omitted foreign properties or other eligible assets from their returns may need to check their reporting status before the disclosure window closes.
The scheme covers two categories of disclosures, with different payment requirements. For eligible undisclosed foreign assets or foreign income that was not offered to tax, the aggregate value of the asset and income covered by the declaration must not exceed Rs 1 crore. The taxpayer must pay tax at 30% of the asset's fair market value or the undisclosed foreign income, along with an additional amount equal to the tax. This takes the effective payment to 60% of the declared value or income.
A separate category covers eligible foreign assets worth up to Rs 5 crore that were acquired using income already offered to tax in India, or income earned when the taxpayer was a non-resident, but were omitted from the relevant schedule of the tax return. Taxpayers covered by this category can make a declaration by paying a fixed fee of Rs 1 lakh.
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