Mumbai: 7500 Indians who own properties in Dubai are under IT scanner


Daijiworld Media Network - Mumbai (MS)

Mumbai, Oct 19: As per reliable sources, the Income Tax (IT) department will investigate the source of funds that were used by nearly 7500 Indians who own plush properties in Dubai.

It is completely legal for Indian nationals to own properties abroad as per the Foreign Exchange Management Act of 1999. However, the IT department will be mainly focusing on the source of finance for such investments. It is learnt that data of these Indian investors who have invested in real estate in Dubai is with the Intelligence and Criminal Investigation (I&CI) wing of the IT department. In addition, the IT department will be investing the angle of declaration of the same to the tax department.

As per the Dubai Land Development department, in the first quarter of 2018, there have been 1550 real estate transactions by Indians in Dubai in which a staggering AED 3 billion was invested by 1387 Indians. In 2017, an amount of AED 15.6 billion was pushed into real estate by Indian investors. The five years data between 2013 and 2017 says that Indians have invested in properties worth AED 83.65 billion in the city.

While it is not a crime for an Indian to invest in properties and securities abroad, a resident individual can invest up to $2,50,000 a year only under the Reserve Bank of India's (RBI's) liberalized remittance route. However, it is mandatory for such investors to show these investments, which they hold in foreign land in their IT returns under FA (Foreign Assets) Schedule since the financial year of 2011-12. If the same is not disclosed during IT return filing, it calls for tax and penalty as per the stringent Black Money (undisclosed foreign income and assets) Imposition of Tax Act (Black Money Act) of 2015.

Undisclosed foreign income and asset is taxed at a rate of 30% under the Black Money Act. In addition, there is provision in the law to slap a fine of 300% of the tax amount along with criminal prosecution. According to a report, at least 29 Indians, who were inquired by different agencies in India for alleged financial crimes and links to offshore entities figure on a global database of those connected to properties in over 20 prime real estate projects in Dubai.

The Indians form a major chunk with 5800 entries out of the possible 129,000 entries in the database of Dubai which are linked to properties in prime locations like the Palm Jumeirah, The World, Motor City, Emirates Living, Dubai Marina and Old Town Island.

  

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Comment on this article

  • raj, Udupi

    Sat, Oct 20 2018

    Woww What an Achi Din!!!!!!

    Were was this IT Dept When Vijay Mally , Nirav Modi ran away....?,

    Does't Reliance, Adani, Don't own property outside India ? where that money comes from....?

    DisAgree [1] Agree [5] Reply Report Abuse

  • SUNNY DSOUZA, MARNIMIKATTE MANGALORE

    Fri, Oct 19 2018

    Achee Din for NRI's
    Looting of Indian's is going on
    Plus additional income

    DisAgree [1] Agree [10] Reply Report Abuse

  • Aubb, India / Kuwait

    Fri, Oct 19 2018

    High Quality of life, infrastructure, social life, religious freedom, freedom of speech, transparency, competitive taxation, ease of owning/maintaining/selling property are few requirements to make India a real estate heaven and to persuade locals/NRIs/Foreign investors to sink their funds in Indian Real estate and other investment channels legally.

    DisAgree Agree [13] Reply Report Abuse

  • NN, NN

    Fri, Oct 19 2018

    If we are non-resident of India for the purpose of Income Tax, do we still have to report the income or assets owned by NRIs. To be considered as resident of India, one has to live in India for 360 days in 4 years preceding to tax year and more than 60 days during the tax year. If our total stay in India is not more than 89 days per tax year i.e. April 1 to March 31, we will never be considered NRIs for the purpose of Income tax. This is my understanding but things might have changed now because India is in need of foreign exchange now.

    DisAgree [1] Agree [10] Reply Report Abuse

  • NN, NN

    Fri, Oct 19 2018

    Please read as... we will never be considered resident of India instead NRI

    DisAgree Agree [5] Reply Report Abuse

  • Alex, Mangalore

    Sat, Oct 20 2018

    Read the following and that will answer your question.
    "While it is not a crime for an Indian to invest in properties and securities abroad, a resident individual can invest up to $2,50,000 a year only ".
    A NRI Indian is not a resident individual, but only Indian individual.
    For the purpose of Income Tax a NRI can live in India for more than 90 days but should not cross 180 days. However, if he has lived more than 90 days, the total of last 4 years should not exceed 360 days.
    Hence the 4 years total of 360 or 180 days in any particular year makes the person resident, for the year.

    DisAgree Agree [3] Reply Report Abuse

  • NN, NN

    Sat, Oct 20 2018

    Thanks for the update. Question: If I am a Indian citizen but non-resident of India for the purpose of Income tax and invest more than $250,000 (US Dollars) per year in foreign countries, do I need to report or file IT returns?

    DisAgree Agree [2] Report Abuse

  • Alex, Mangalore

    Sat, Oct 20 2018

    For the purpose of incometax or otherwise the rule is same. An NRI is a NRI and resident is resident or not ordinarily resident ( which is the only case for Income Tax ).
    A NRI can invest any amounts of the money anywhere in the world, and it is optional to declare in the ITR forms of the income tax and hence is not compulsory.
    Quarter million dollars are only for Resident individuals ( both individual and not ordinarily resident).
    You can withdraw even a billion dollars if you have in NRE or FCNR account and invest anywhere.
    However if you become a resident any time, you have to give complete account of the investments, bank accounts (anywhere in the world) and all the details regarding them, listing all of them in the ITR forms, during filing of tax.

    DisAgree Agree [3] Report Abuse

  • AMAR NATHAL, MANGALORE

    Fri, Oct 19 2018

    Mango, Mlore, you have hit the nail right on the head. We are filthy, to be polite. Our politicians and leaders are blind to see the order and cleanliness in foreign countries. If chai and pakoda is the standard, filth is the outcome. We need Oxford graduates to be our Prime Ministers. We value education.

    DisAgree [6] Agree [20] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Fri, Oct 19 2018

    Targetting South Hindustani's....!!!!

    All Gujju's during the past couple of years obtain st Kits & Nevis, Antigua, kenya, tanzania, British, south affrica etc., passport and own their assets with Non-Hindustani's identities....!!!! (suppresing one's Hindu identity is in other words can be called as FEKU ...Desh bhakt nationals)

    The govt must obtain the list from across the globe to know..., how many Hindustani's are given letter by Hindustan's external ministry to obtain such overseas passport....!!!!

    Jokers..., just DOMBARATA.....!!!!!

    DisAgree [6] Agree [23] Reply Report Abuse

  • Narendra dhoni, Kallianpur

    Fri, Oct 19 2018

    Many smugglas of india are hiding indubayy

    DisAgree [2] Agree [19] Reply Report Abuse

  • prem, moodbidri

    Fri, Oct 19 2018

    Undoubtedly majority of the property owners in Gulf countries are Gujjus and Sindhis

    DisAgree Agree [33] Reply Report Abuse

  • Tell The Truth, Mangalore

    Fri, Oct 19 2018

    All invested before 2 0 1 4. Now price sky rocketed due to fall of indian rupee.

    DisAgree [17] Agree [9] Reply Report Abuse

  • Sunil, Udupi

    Fri, Oct 19 2018

    Many BJP politicians from our twin districts might have property in Dubai

    DisAgree [4] Agree [32] Reply Report Abuse

  • sathish shetty, siddakatte.

    Fri, Oct 19 2018

    why Congrss people cannot take?

    DisAgree [16] Agree [6] Reply Report Abuse

  • Satya, Dubai

    Fri, Oct 19 2018

    Because Modi said Congress doesn't have money, very simple.

    DisAgree [2] Agree [12] Reply Report Abuse

  • Joulan, Mangalore

    Fri, Oct 19 2018

    Don't know about RBI limitations, but it is a high risk investment.
    But no-one can stop someone from investing abroad unless the money is laundered.
    Govt depends on expatriate investment to survive.
    People don't invest here because of quality of construction & red-tapism or corruption ..

    DisAgree [2] Agree [23] Reply Report Abuse

  • PEDDA GUNDOO, MANGALURU

    Fri, Oct 19 2018

    And we call ourselves we are PATRIOT and we invest in foreign country ! We compel to say BHARAT MATHA KI JAI ! if BHARAT is our Mother and then What should we call DUBAI ???????? All hypocrites! In this 7500 almost 7000 are Politicians or #Metoo people from Bollywood !! who sucked blood of common man ! Just like if common man not watching the movies at all what they will do ? If the common man will not vote them where is the money coming from ?

    DisAgree [1] Agree [31] Reply Report Abuse

  • Nash, Mangalore

    Fri, Oct 19 2018

    Pedda Gunda compare the life style and crime rates of both cities... You vl get the answers... Accepting poor infrastructure and lawlessness is not called patriotism...

    DisAgree [8] Agree [15] Reply Report Abuse

  • PEDDA GUNDOO, MANGALURU

    Fri, Oct 19 2018

    Double standard people only live in the country called INDIA ! Better learn from CHINA where the population of that country is almost not bearable but still giving competition to USA and one day will be far ahead than USA !!

    DisAgree [6] Agree [25] Reply Report Abuse

  • Rathan, Mangalore

    Fri, Oct 19 2018

    Pedda
    So you r one among them

    DisAgree [14] Agree [5] Report Abuse

  • PEDDA GUNDOO, MANGALURU

    Fri, Oct 19 2018

    Rathan ! why you are avoiding or hiding yourself !

    DisAgree [3] Agree [18] Report Abuse

  • Nash, Mangalore

    Fri, Oct 19 2018

    First of all China has better infrastructure more jobs and better lifestyle than Dubai. Their leaders are visionaries not like our CONgress other parties who only keep filling their own pockets... You may not know this but Chinese are the biggest spenders when it comes to buying properties abroad... Buying a property in developed countries doesn't make you less patriot. Yes they must be punished if the money is ill gotten but if it's hard earned money they have the right to spend it as per their will.

    DisAgree [16] Agree [10] Report Abuse

  • Kishore Kumar, Mangaluru

    Fri, Oct 19 2018

    Nash,
    First make some research that what type of money are invested in dubayy not only by Indians, but buy other nationalities also. Majority of them are 'do number ka'.

    DisAgree [5] Agree [13] Reply Report Abuse

  • Mango, Mlore

    Fri, Oct 19 2018

    Provide good infrastructure first here in Mumbai so that even Emiratis will come and buy property in India...
    Other than few posh Localities, Mumbai looks like a Slum city in front of Dubai !!

    DisAgree [2] Agree [66] Reply Report Abuse


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