India Urges Taxpayers to Disclose Undeclared UAE Properties

The Income Tax Department of India is urging taxpayers with undisclosed residential and commercial properties in the United Arab Emirates to regularize their assets under the Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026 (FAST-DS). This self-declaratory window allows eligible taxpayers to avoid prosecution and assessment under the Black Money Act, 2015, by paying a 30 percent tax on the fair market value of the assets plus an equal penalty.

Alternatively, taxpayers may report unaccounted assets for a fee of Rs 1 lakh to avoid annual penalties of Rs 10 lakh. To encourage participation, the department integrated data from the Automatic Exchange of Information framework for the years 2022 to 2024 into its e-filing portal, allowing taxpayers to view assets reported against their PAN by foreign jurisdictions. This move followed an October 23 meeting where officials decided to share additional intelligence with taxpayers.

Approximately 1,100 applications have been filed since the launch. To support the process, the Central Board of Direct Taxes established regional committees under the Principal Chief Commissioner to resolve taxpayer queries and planned further outreach to professional bodies and corporates. The scheme remains open for declarations until December 31, 2026.