NRIs Face: The income tax department has issued alerts to non-resident Indians, emphasizing high-value transactions and unfiled returns for 2022-23. NRIs, including those with FCNR, NRE, or NRO deposits, have recently received these notifications.
NRIs Face Tax Issues
Market observers note that these alerts serve as preliminary notifications based on the tax department’s available data. Failure to respond promptly could result in the issuance of notices for assessments or reassessments, leading to detailed scrutiny. Responding involves filing revised returns to address discrepancies or providing appropriate replies on the income tax portal.
In certain instances, individuals may have deposited funds from earnings abroad, while property transactions have triggered communications, as long as the sourced funds are identified and not taxable in India.
The communications from the income tax department may arise from duplicate entries in Form 26 AS or investments made under joint accounts. Some NRIs may not have converted their bank accounts into non-resident accounts and may have received taxable income in the form of dividends.
For NRIs without an income source in India, the remedy is to submit an online response on the IT portal. However, the portal offers only dropdown options to confirm select information, without space for providing explanations.
In cases of a mismatch in offered income and IT communications or if an NRI taxpayer missed filing the return of income for the financial year 2022-23, a revised or belated return can be filed.
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