Diwali falls on Sunday, 8 November 2026, and for many families it is an auspicious time to make significant purchases. Dubai developers know this, and the festive season often brings launches and offers aimed at Indian buyers. A home in Dubai can be a sensible part of a family’s long-term plans, but the instalment plan deserves as much attention as the festive incentive.
For resident Indians, every instalment is an overseas remittance. That links the developer’s schedule to India’s Liberalised Remittance Scheme, tax collected at source and currency movements. The right plan is the one whose payments you can make lawfully, on time and without strain, across several Indian financial years.
The rules that shape your schedule
The RBI’s Liberalised Remittance Scheme Master Direction allows a resident individual to remit up to USD 250,000 per April–March financial year for permitted purposes, including buying property abroad. That limit covers all your LRS remittances in the year, not just property, so overseas travel, investments and education spending reduce what is left for instalments.
Tax collected at source applies on top. The Income Tax Department’s TCS table shows 20% collected on LRS remittances, other than for education or medical treatment, above ₹10 lakh in a financial year. TCS can generally be credited against your income tax liability, but it is a real cash outflow when you remit.
Our earlier guide to buying Dubai property from India covers these rules and reporting in more detail. This article focuses on how they interact with a developer’s payment plan.
Common Dubai payment plan structures
Off-plan projects usually split the price into a booking amount, construction-period instalments and a handover payment. Some add a post-handover plan, in which part of the price is paid in instalments after you receive the keys.
A 60/40 plan, for example, means 60% before completion and 40% at or after handover. A post-handover plan might be 50/50, with half paid over two or three years after completion. Developers may also offer monthly 1% plans, where a small percentage is paid every month.
Each structure distributes cost differently across financial years. A plan with a large handover payment concentrates remittances into one year, possibly beyond your LRS headroom. A monthly plan spreads payments but requires disciplined, regular remittances, each processed through your bank with the correct purpose code.
A worked schedule across Indian financial years
The following example is hypothetical. It assumes an AED 1.5 million apartment, a 60/40 plan, the 4% DLD fee paid at booking, an exchange rate of AED 3.6725 per US dollar and no other LRS remittances by the buyer.
| Payment | Timing | Indian FY | AED | Approx. USD |
|---|---|---|---|---|
| Booking 20% plus DLD 4% | Nov 2026 | 2026–27 | 360,000 | 98,026 |
| Construction 20% | Jun 2027 | 2027–28 | 300,000 | 81,688 |
| Construction 20% | Dec 2027 | 2027–28 | 300,000 | 81,688 |
| Handover 40% | Mar 2029 | 2028–29 | 600,000 | 163,376 |
Each financial year stays within the USD 250,000 limit in this example, with 2027–28 totalling about USD 163,376. If the handover slipped from March to April 2029, it would move into 2029–30, which might help or hurt depending on other remittances that year. Delays change your LRS and TCS position, so review the plan whenever the developer revises dates.
TCS illustrates the cash-flow effect. At a hypothetical ₹88 per US dollar, the first year’s USD 98,026 is roughly ₹86 lakh. TCS of 20% on the amount above ₹10 lakh would be about ₹15 lakh collected at remittance. Your adviser can confirm the exact computation and how it is credited.
Family members and joint purchases
Many Indian families buy jointly. The RBI’s overseas property guidance discusses circumstances in which relatives’ remittances can be consolidated for a property purchase, subject to each person’s compliance. Joint ownership must match the remittances: names on the title, the sale agreement and the remitting accounts should align.
Agree in advance who pays which instalment and from which account. Keep a schedule showing each family member’s remittances against their own LRS limit, and keep bank advices and Form A2 records together with the developer’s receipts.
Currency and timing risk
The dirham is pegged to the US dollar, but the rupee is not. If the rupee weakens against the dollar during construction, later instalments cost more in rupees. A plan with most payments far in the future carries more currency uncertainty.
Some buyers remit earlier when rates are favourable, but paying ahead of schedule changes your LRS and TCS position and may not be permitted or rewarded by the developer. Discuss options with your bank and adviser rather than reacting to short-term movements.
Choosing between plans for the same project
Developers sometimes offer more than one plan for the same unit, and the price may differ between them. A longer post-handover plan can carry a higher total price than a shorter plan or an early-payment option. Compare the total amount payable under each, not only the size of the instalments.
For an Indian buyer, the comparison has an extra layer. A plan that stretches payments over more financial years may keep each year comfortably within the LRS limit and spread TCS over time, which can be valuable for a family with other overseas commitments. A shorter plan may cost less overall but concentrate remittances, and TCS, into fewer years.
Write both plans out year by year in rupees, using a cautious exchange rate, and add the TCS cash outflow to each. Then decide which combination of total cost and annual cash requirement suits your household. The festive offer should fit that analysis, not replace it.
If you are buying to let, also consider when rent begins. A post-handover plan means you may receive rent while still paying instalments, which can help cash flow if the rent is reliable. Model a vacancy period to see whether the plan remains comfortable.
Paying safely into escrow
Dubai off-plan payments should go into the registered project’s escrow account. Check the project through DLD’s project status service and confirm the account through the developer’s official channels. Never pay instalments to a broker’s or individual’s account, and treat any change of bank details by message as a red flag.
Before Diwali offers create urgency, read the sale agreement’s provisions on late payment, delay and cancellation. A missed instalment can trigger penalties or, in serious cases, termination. Your Indian remittance timetable must therefore be reliable, not just possible.
Browse current Nova Domus properties with your financial-year budget in mind, and read the foreign-buyer guide for the Dubai transaction steps.
Frequently asked questions
When is Diwali 2026?
Diwali falls on Sunday, 8 November 2026. Many Dubai developers time launches and promotions around the festive season, but the terms should be judged on their merits.
Can I pay Dubai property instalments under LRS?
Yes. Resident individuals can use LRS for property abroad, within the USD 250,000 annual limit that covers all their LRS remittances in a financial year. Use the correct purpose code and keep records.
Will TCS apply to every instalment?
TCS at 20% generally applies to LRS remittances above ₹10 lakh in a financial year, other than for education or medical purposes. Your bank collects it at remittance; it can usually be credited against your tax liability.
Is a post-handover payment plan better for Indian buyers?
It can spread payments across more financial years, which may help with LRS limits. It also extends your commitment and currency exposure. Compare the total price and terms, not just the schedule.
Can my family share the payments?
Joint purchases and relatives’ remittances are possible within RBI rules, provided each person complies and ownership matches the funding. Take advice before structuring a family purchase.
Conclusion: let the calendar fit your finances
A festive purchase works best when the payment plan has been mapped across Indian financial years, TCS has been budgeted and every instalment goes to a verified escrow account. With that preparation, the celebration marks the start of a well-planned ownership.
Contact Nova Domus this Diwali to discuss projects whose payment schedules suit your family’s plans. We can help you compare plans and organise the documents for each instalment.
