CBDT nudges taxpayers with undeclared properties in UAE to disclose assets under new scheme

The Income Tax Department has begun nudging select taxpayers suspected of holding undeclared overseas properties to take advantage of a one-time disclosure window under the government’s Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), as authorities step up efforts to bring undisclosed foreign assets and income into the tax net.

Sources told Business Today that the department has recently reached out to select taxpayers who have invested in residential and commercial properties in a country in the UAE.

The move follows a high-level meeting held on October 23, 2026, at which it was decided that information available with the department could be shared with relevant taxpayers, wherever possible, to help them avail of the scheme.

The department has also created a facility on the income tax e-filing portal allowing taxpayers to view and download information on foreign assets reported against their Permanent Account Numbers (PANs) by foreign jurisdictions under the Automatic Exchange of Information (AEOI) framework, commonly known as the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA). Data for 2022-2024 is available on the portal.

However, sources said the portal currently displays only information received from signatories to the CRS/FATCA frameworks. Information obtained through other multilateral arrangements, which has not been displayed due to risk factors or non-disclosure commitments, as well as intelligence gathered from other sources, also remains available with the department.

Under FAST-DS, eligible taxpayers can regularise disclosures by paying tax at 30% of the fair market value of the relevant foreign assets, along with an equal amount as penalty.

The scheme is entirely online and self-declaratory. A valid declaration provides immunity from further assessment, penalty and prosecution under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

The scheme also allows taxpayers to disclose accounted foreign assets and income by paying a fee of Rs 1 lakh, helping them avoid the penalty of Rs 10 lakh for each year prescribed under the Black Money Act.The Central Board of Direct Taxes (CBDT) has planned outreach programmes involving corporates, educational institutions, professional bodies and industry associations.

Regional committees under principal chief commissioners have also been constituted to address taxpayers’ queries.

Around 1,100 taxpayers have filed applications so far. The scheme remains open until December 31, 2026.