Now Reading: Income Tax dept targets UAE property holders, FAST-DS deadline 31 Dec
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Income Tax dept targets UAE property holders, FAST-DS deadline 31 Dec
The Story in Brief
The Income Tax department has begun contacting taxpayers suspected of holding undisclosed residential and commercial property in the UAE. A high-level meeting on 23 October decided to share information with relevant taxpayers so they can avail of the government's new disclosure scheme.
Taxpayers can now view and download foreign asset data linked to their PAN on the e-filing portal, sourced through automatic exchange of information (AEOI) under CRS and FATCA for 2022-2024. The government has launched the Foreign Assets of Small Taxpayers Disclosure Scheme 2026 (FAST-DS), under which eligible taxpayers can disclose foreign assets by paying 30% tax on the fair market value plus an equal penalty.
A separate option allows disclosure of assets already on record for a Rs 1 lakh fee, avoiding the Rs 10 lakh annual penalty under the Black Money Act. So far 1,100 applications have been filed. The last date to apply under FAST-DS is 31 December 2026.
Indian Opinion Analysis
The FAST-DS scheme targets small taxpayers who may have failed to declare UAE property, a jurisdiction popular with Indian investors. The 30% tax plus equal penalty is a heavy but one-time settlement, those who miss the 31 December deadline face the full rigour of the Black Money Act, including annual penalties of Rs 10 lakh. The department's decision to proactively share AEOI data signals that non-disclosure will no longer go undetected. The key question is how many of the estimated undisclosed asset holders will come forward before the window closes.
Source: businesstoday.in
This brief was synthesised by AI from the source linked above. Methodology and corrections.
