The Income-Tax Department has reportedly begun contacting select Indian taxpayers who own residential or commercial properties in the United Arab Emirates, as part of a one-time scheme to disclose previously undeclared foreign assets and income, according to people aware of the development cited by Hindustan Times. The department’s reported outreach comes as approximately 1,100 taxpayers have applied under the Foreign Assets of Small Taxpayers — Disclosure Scheme, 2026, or FAST-DS.
The central government launched FAST-DS on August 16 as a time-bound opportunity for eligible taxpayers to regularise certain undisclosed foreign assets, undisclosed foreign income and undeclared foreign assets. The scheme requires applicants to pay specified tax and fees, and its deadline is December 31, 2026, according to the report.
The reported focus on UAE property owners highlights the growing importance of cross-border information exchange in the administration of India’s foreign asset rules. Residential and commercial property holdings can involve multiple layers of ownership, reporting and valuation, making access to overseas information significant for tax authorities and taxpayers seeking to resolve past non-disclosures.
The department has created a facility on the income-tax e-filing portal through which taxpayers can view information relating to foreign assets reported against their Permanent Account Numbers. The information is sourced through Automatic Exchange of Information arrangements, including the Foreign Account Tax Compliance Act and the Common Reporting Standard. The portal currently displays information for the years 2022 to 2024, according to the people cited in the report.
The information available to taxpayers through the portal does not represent the full range of data received by the department. Information obtained through other multilateral frameworks has not been displayed because of risk factors or non-disclosure commitments, while the department also gathers intelligence from other sources, the report said.
At a high-level meeting on October 23, the department decided that relevant information could be shared with taxpayers wherever possible, enabling them to assess whether they could use FAST-DS. The report said the department had subsequently nudged select taxpayers with investments in UAE residential or commercial properties. This specific outreach claim has not been independently confirmed in the supplied material.
Under the scheme, eligible disclosures require payment of tax equivalent to 30% of the fair market value of the asset, along with an equal amount as penalty. A valid declaration is intended to provide immunity from further assessment, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, subject to the scheme’s conditions.
FAST-DS is described as an online, trust-based and self-declaratory process. The scheme also allows taxpayers to report certain accounted assets and income by paying a ₹1 lakh fee, instead of facing the ₹10 lakh annual penalty prescribed under the Black Money Act, according to the report.
The Income-Tax Department is also planning outreach programmes for taxpayers, employers, educational institutions, professional bodies and industry associations. The Central Board of Direct Taxes has formed committees in each region under the principal chief commissioner to address taxpayer queries and concerns. Further confirmation from the department would be required to establish the scope and basis of the reported contact with UAE property owners.
