India's Income Tax Department has contacted select taxpayers who own residential or commercial property in the UAE. The messages ask them to check that their foreign assets and income were reported correctly in their Indian tax returns.
A nudge is not a tax demand. It does not mean a property was bought with undeclared money, only that the department wants owners to check their records.
01The FAST-DS window
The messages point to FAST-DS 2026, a one-time scheme to declare foreign assets or income that were left out of past returns. It was announced in the Union Budget 2026–27, came into force on 16 August 2026 and closes on 31 December 2026.
| Category | Who it covers | Limit | Cost |
|---|---|---|---|
| Category 1 | Foreign assets or income never taxed in India | Up to ₹1 crore | 30% tax plus an equal amount, 60% in total |
| Category 2 | Assets bought from income already taxed, or while non-resident, but missing from the foreign-asset schedule | Up to ₹5 crore | Flat fee of ₹1 lakh |
Gulf News, 28 October 2026; scheme terms as reported by Upstox and Drishti IAS. Assets are valued as at 31 March 2026.
A valid declaration gives protection from further tax, penalties and prosecution under the Black Money Act for the assets declared. Around 1,100 applications had been filed so far, according to Finance Ministry sources cited by Gulf News.
02How India sees UAE assets
India receives overseas account data through international exchange agreements. The income-tax e-filing portal now shows foreign data linked to each PAN for 2022, 2023 and 2024.
The small-asset relief added in 2024 does not cover property abroad. That means a UAE home must appear in the foreign-asset schedule of the return every year for anyone who is tax-resident in India, whether or not it earns rent.
03Why it matters for buyers
Owning UAE property is legal. Resident Indians can buy abroad under the Liberalised Remittance Scheme, and NRIs can pay from income earned overseas. The issue is reporting, not ownership.
Off-plan homes count before handover. An off-plan unit you are still paying for is a foreign asset. If you are tax-resident in India, list it in your return from the year you sign, even before the keys arrive.
Check your records now. Keep the sale agreement, payment receipts, bank statements and proof of source of funds together. Look at the foreign data on your e-filing portal, check your residency status in each year, and speak to a qualified Indian tax adviser before 31 December.
Our guide to buying Dubai property from India explains the LRS limit, TCS and annual reporting step by step.
SourcesWhere this story comes from.
Sources
- Gulf News: Bought UAE property? India's tax alert could affect you, 28 October 2026
- Upstox: FAST-DS explained: foreign asset disclosure scheme opens, August 2026
- Drishti IAS: Foreign Assets of Small Taxpayers Disclosure, 21 August 2026
Corrections
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28 Oct 2026, 16:21 GST · Reported by OffPlan Insider Newsdesk, checked against the developer's own material before publication.
