NRI Investments in India: What to Do if You Receive an Income Tax Notice
UAE – NRI – Notice – Income Tax – Tax – Income – Income tax reassessment – reassessment notice – reassessment – TaxscanUAE – NRI – Notice – Income Tax – Tax – Income – Income tax reassessment – reassessment notice – reassessment – Taxscan
UAE – NRI – Notice – Income Tax – Tax – Income – Income tax reassessment – reassessment notice – reassessment – TaxscanUAE – NRI – Notice – Income Tax – Tax – Income – Income tax reassessment – reassessment notice – reassessment – Taxscan
Several UAE-based Indian ex-pats have been receiving notices from the Indian income tax department in relation to their previous investments in India. These notices have led to concerns among Non-Resident Indians (NRIs) about the next steps to take if they receive such notices.
What are Reassessment Proceedings?
The notices, titled ‘Notice under Section 148 (or Section 148A) of Income Tax Act 1961’, scrutinize NRI investments made in India over the past years for which no income tax returns were filed, and are sent to NRIs to initiate ‘reassessment proceedings’.
Reassessment proceedings mean reopening an already completed income tax assessment or income tax return (ITR) filing and reassessing the total income of the assessee-taxpayer, which in this case is an NRI who has received such a notice.
Steps to Take If You Receive an Income Tax Notice.
If you are an NRI who has received a notice under Section 148A or Section 148 of the Income Tax Act, it is important to take appropriate action. The notice will specify the reason for the ‘reassessment proceedings,’ which could be due to the Income Tax Department's belief that there has been an under-assessment or absence of income in the previous assessment year(s).
The notice will also provide a time limit within which you need to respond. The time limit for responding to a notice issued under Section 148A is 60 days from the date of receipt of the notice, while for a notice issued under Section 148, the time limit is 30 days from the date of receipt of the notice.
You can respond to the notice in various ways, such as filing a return of income, furnishing the required information, or filing a written submission challenging the notice. it is advisable to seek professional help to ensure that you respond appropriately and fulfil all necessary requirements within the specified time limit.
In conclusion, if you're an NRI who has received a notice from the Indian income tax department, it is important to respond in a timely and appropriate manner to avoid penalties and legal consequences. Seek professional help to ensure that you fulfil all necessary requirements and respond appropriately. Don't ignore the notice or delay your response, as non-compliance can lead to penalties and legal consequences.
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