New Delhi: The Income Tax department has launched a probe against 7,500 Indians – who have purchased extravagant properties in Dubai in the last few years.
As per reports, the Intelligence and Criminal Investigation (I&CI) wing of I-T department has collected data of Indian nationals – who have made investments in real estate in Dubai – to probe the source of funds of such investments abroad. The investigation is also checking whether these real estate assets acquired by Indians have been declared to the tax agency.
3 billion in Investments
- In the first three months of 2018, at least 1,387 Indian nationals have invested United Arab Emirates Dirham (AED) 3 billion through 1,550 real estate transactions in Dubai, according to the Dubai Land Development.
- In 2017 alone, Indian investors invested AED 15.6 billion in Dubai. As per the Dubai Land Development statistics, in five years between 2013 and 2017, Indian nationals have bought properties worth AED 83.65 billion in Dubai.
Under Indian laws, it is not illegal for Indians to own property in Dubai. According to the Foreign Exchange Management Act of 1999, resident and non-resident Indians are allowed to own immovable properties abroad.
Under the Reserve Bank of India’s (RBI’s) liberalised remittance route, a resident individual can invest up to $250,000 a year in properties and securities abroad. However, Indian tax rules mandate residents and ordinary residents in India to disclose foreign assets held by them in the IT returns under FA (Foreign Assets) Schedule since financial year 2011-12.
Subsequently, with the introduction of the stringent Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act (Black Money Act) in 2015, non-disclosure of foreign assets also attract tax and penalty.