 "I-T dept probes 500 Dubai property cases, Rs 700 cr evasion found in Delhi")
The Income Tax (I-T) department has identified over 500 ‘actionable’ cases involving undisclosed immovable properties held by Indians in Dubai, according to The Economic Times report. Raids conducted in Delhi alone have uncovered unaccounted transactions exceeding Rs 700 crore, the report added citing sources.
The Delhi investigation wing of the I-T department has conducted more than a dozen searches, uncovering evidence of 43 undisclosed Dubai properties. The suspected evasion in Delhi alone surpasses Rs 700 crore. As the investigation expands nationwide, the figure is likely to run into several thousand crores, the report quoted an official as saying.
Germany shares data on Indian properties in West Asia
India has recently received information from Germany about properties owned by Indians in West Asia. The data was shared under the ‘Spontaneous Exchange of Information’ framework of the Double Taxation Avoidance Agreement between the two countries. It includes details of properties owned by over 1,000 Indian nationals, although it remains unclear how German authorities obtained the information.
During the Delhi searches, taxpayers admitted to investing more than Rs 125 crore in undisclosed cash, according to the official. The department also discovered bogus receipts and records of cash payments and purchases which were being analysed to uncover the methods used to park unaccounted wealth abroad, the extent of asset non-disclosure, and the potential volume of black money involved.” Legal action under the Income Tax Act or Black Money Act is being considered, The Economic Times mentioned.
I-T dept sends notices over undeclared properties in Dubai
Since October, several wealthy Indians allegedly owning undeclared properties in Dubai have received notices from the Foreign Asset Investigation Unit (FAIU). According to reports, around 100 notices were issued in the past week alone.
This action follows information shared by the United Arab Emirates (UAE) authorities about property ownership by Indian passport holders who have stayed in the UAE for less than 90 days.
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Dubai’s real estate market has attracted numerous Indian investors in recent years, offering schemes requiring as little as a 10 per cent down payment, with the balance payable over several years.
Indian nationals residing in the UAE for over 90 days can obtain residency status, and those staying for more than 181 days may benefit from provisions under the India-UAE tax treaty. However, such protections do not extend to non-residents, leaving them vulnerable to scrutiny.
In response to the notices, the FAIU has asked several individuals to confirm whether the funds used for their Dubai property purchases are derived from legitimate sources and properly declared in their foreign asset schedules on income tax returns.