Remitting funds under the Liberalised Remittance Scheme (LRS)
The Reserve Bank of India currently allows a resident individual to remit up to USD 250,000 per financial year for permitted current and capital-account transactions under LRS, including overseas property. Confirm how the purchase price and payment dates fit your personal allowance with your authorised dealer bank before reserving.
- File Form A2 and a FEMA declaration with your bank each time you remit.
- Your bank converts INR to AED and wires directly to the developer's escrow account.
- Keep the developer's proforma invoice and allotment letter, the bank asks for them.
TCS and the cost of remitting
Tax Collected at Source can affect the cash needed for an overseas remittance, but its thresholds and rates are time-sensitive. Ask your authorised dealer bank and Indian tax adviser to confirm the current treatment for your transaction. Where TCS applies, it is generally collected against your PAN and reflected in your tax records rather than becoming part of the Dubai property's price.
- Ask your bank for the TCS certificate (Form 27D) so you can claim it back.
- Confirm any credit or refund position through your Indian tax return.
- Match the project's dated instalments to your permitted remittance plan before booking.
Tax on rental income and capital gains
Rental income from Dubai property is not taxed in the UAE. For an Indian resident, it is added to your global income and taxed at your slab rate, but you can claim a 30% standard deduction on rental income under Section 24 of the Income Tax Act, plus interest on any home loan. Capital gains on selling the Dubai property are taxable in India as capital gains, whether short or long term. File Schedule FA each year to declare the foreign asset.
- Declare the property and any foreign bank account in Schedule FA of your ITR.
- A Dubai home loan, if any, is deductible under Section 24(b) up to ₹2 lakh on a self-occupied property.
- Capital gains become long term after 24 months for immovable property, taxed at 12.5% (no indexation).
The 10-year Golden Visa in rupees
A property investment of AED 2 million or more qualifies the buyer, spouse and children for a 10-year renewable UAE Golden Visa. At today's rate that is roughly ₹4.5 crore. Several Binghatti communities, including Jumeirah Village Circle, Business Bay and Meydan, have villas and larger apartments that clear the threshold. The visa does not require you to live in Dubai full time and does not change your Indian tax residency on its own.
Power of attorney and the remote purchase
Most Indian buyers do not need to fly in for every signature. You can issue a Special Power of Attorney to a family member or advisor in Dubai, attested by the Indian Consulate and the UAE Ministry of Foreign Affairs, which lets them sign the SPA, register with the Dubai Land Department and collect keys. We help arrange this paperwork and the escrow wiring so the purchase can complete with one short visit for handover.