The Income Tax ( IT ) department has pinpointed over 500 actionable cases related to undisclosed immovable assets owned by Indians in Dubai, as reported by The Economic Times. Raids in Delhi alone have revealed unreported transactions exceeding ₹700 crore, according to sources cited in the report.
The Delhi investigation wing of the I-T department has carried out more than twelve searches, uncovering evidence of 43 hidden properties in Dubai. The suspected tax evasion in Delhi alone amounts to over ₹700 crore. With the investigation expanding across the country, officials anticipate that the total could escalate to several thousand crores.
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Germany has provided India with data concerning Indian-owned properties in West Asia. This information was shared under the ‘Spontaneous Exchange of Information’ provision of the Double Taxation Avoidance Agreement between India and Germany. The data includes details of properties held by over 1,000 Indian nationals, although the method by which German authorities obtained this information remains unclear.
During the raids in Delhi, taxpayers confessed to investing more than ₹125 crore in undisclosed cash, according to an official. The department also found fraudulent receipts and records of cash payments and purchases, which are being analyzed to determine the techniques used to conceal wealth abroad, the extent of asset non-disclosure, and the potential volume of black money involved. Legal proceedings under the Income Tax Act or the Black Money Act are being considered, The Economic Times reported.
Since October, numerous affluent Indians allegedly owning undeclared properties in Dubai have been issued notices by the Foreign Asset Investigation Unit (FAIU). Reports indicate that approximately 100 notices were dispatched in the last week alone. This move follows information provided by the United Arab Emirates (UAE) authorities regarding property ownership by Indian passport holders who have stayed in the UAE for fewer than 90 days.
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Dubai’s real estate market has attracted many Indian investors in recent years, offering schemes that require as little as a 10 percent down payment, with the remaining balance payable over several years.
Indian nationals residing in the UAE for more than 90 days can obtain residency status, and those staying over 181 days may benefit from provisions under the India-UAE tax treaty. However, these protections do not apply to non-residents, making them susceptible to scrutiny.
In reaction to the notices, the FAIU has requested several individuals to verify whether the funds used for purchasing properties in Dubai originate from legitimate sources and are properly declared in their foreign asset schedules on their income tax returns.
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