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Tax crackdown on undeclared overseas properties owned by Indians
Germany has shared crucial data with India leading to notices to 100 Indian nationals in 14 cities for undeclared properties in Dubai and Abu Dhabi.
Data / Pexels
Germany has shared significant data collection with India under the spontaneous exchange of information clause of the Double Taxation Avoidance Agreement (DTAA). This prompted India's Foreign Asset Investigation Unit (FAIU) to issue notices to around 100 Indian nationals across 14 cities, including Mumbai, Delhi, and Bengaluru, for holding undeclared properties in Dubai and Abu Dhabi.
This action follows the receipt of detailed data from UAE authorities under international data-sharing agreements, targeting individuals who failed to disclose these assets in their tax filings.
According to officials, these properties were purchased using funds not reported under India’s Black Money (Undisclosed Foreign Income and Assets) Act, which mandates strict penalties for non-disclosure of foreign assets.
Taxpayers unable to verify the legitimate source of funds used to purchase these properties may face penalties exceeding the asset’s value. Notices have been dispatched to cities including Mumbai, Delhi, and Bengaluru.
The Central Board of Direct Taxes (CBDT) recently warned taxpayers of severe consequences under the Anti-Black Money Law, including a penalty of US$ $12,000 (INR 10 lakh) for failing to disclose foreign-held assets or overseas income in their Income Tax Returns (ITR).
The combined data from Germany and the UAE marks a new phase in India’s tax enforcement efforts. Individuals implicated in these investigations are required to disclose the origin of funds for their offshore investments or face hefty fines and potential legal action.
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