Archive · 4 Aug 2025
Dubai Property Purchases via Credit Card Leading to Tax Trouble for Indians
Some Indians who used credit cards to buy property in Dubai are now in trouble.
They thought it was an easy way to pay, but it goes against the rules.
Credit cards are for things like booking hotels, not buying property.
The government has a rule called LRS, which says how much money you can send abroad.
Credit cards don't follow these rules, and buyers might have to pay extra taxes.
Now, some people are fixing their mistake by sending money the right way through their bank.
Indians using credit cards to buy Dubai property face potential legal and tax issues.
Using credit cards for property purchases violates RBI guidelines meant for current account transactions.
Buyers sought an easy payment method to avoid paperwork and the 20% TCS.
Experts warn that credit card use circumvents the Liberalised Remittance Scheme (LRS).
Some buyers are rectifying the issue by remitting money through proper channels.
- Who
- Indians buying property in Dubai using credit cards.
- What
- Indians are facing legal and tax problems after using credit cards to buy property in Dubai.
- When
- Details regarding specific timelines are not available.
- Where
- Dubai
- Why
- Using credit cards violates RBI guidelines and circumvented tax laws.
Credit Card Users
Financial Authorities and Experts
Payment Method
Credit Card Users
Convenience and ease of transaction.
Financial Authorities and Experts
Compliance with RBI regulations and tax laws.
Financial Strategy
Credit Card Users
Avoidance of paperwork and initial 20% TCS.
Financial Authorities and Experts
Proper remittance under LRS rules.
- Issue
- Using credit cards for Dubai property purchases
- Violation
- RBI guidelines for current account transactions
- Tax Implications
- Potential Income Tax and Enforcement Directorate scrutiny
- Corrective Action
- Remitting money via proper banking channels
- Legal Basis
- Section 206C(1G)(a) of the Income Tax Act