NRI Taxation India: Annual Information Statement (AIS) – Impact On NRIs, Foreign Citizens & Seafarers

What is Annual Information Statement (AIS)?

The Annual Information Statement (AIS) is a recently introduced system by the Income Tax Department. It serves as an information repository for taxpayers, providing insights into their financial transactions throughout a given year. This comprehensive statement encompasses various financial activities undertaken by taxpayers within the specified period.

How does AIS impact Non Residents, NRIs?

For many NRIs and foreign citizens, engaging in financial transactions in India is common. The AIS now captures these transactions, even if individuals do not file Indian tax returns. Consequently, the Income Tax Department may initiate inquiries or issue notices to NRIs and non-residents regarding their unfiled tax returns in light of these recorded transactions.

What are the benefits of AIS to NRIs, Non-Residents?

NRIs, OCIs, and other non-residents stand to benefit significantly from the AIS system:

1. Streamlined reconciliation of transactions with AIS data.
2. Facilitated retrieval of necessary banking or brokerage information for tax filing purposes.
3. Reduction of potential tax department inquiries by ensuring comprehensive reporting of transactions in tax returns.
4. Enhanced tracking and management of investments and financial activities in India.
5. Improved awareness of the importance of filing tax returns among NRIs.

What are the types of transactions provided in Annual Information Statement (AIS)? Does It apply To Non-Residents, NRIs, Seafarers?

The AIS encompasses various transactional data relevant to NRIs, non-residents, and seafarers, including:

1. Salary information.
2. Interest income from savings and deposit accounts.
3. Purchase and sale records of mutual funds, shares, and bonds.
4. Specified financial transactions (SFT), such as property transactions and cash deposits.
5. Tax deducted at source (TDS) and tax collected at source (TCS) details.
6. Tax demand and refund particulars.

This information pertains to financial activities commonly undertaken by NRIs and non-residents in India, underscoring the importance of AIS for tax compliance.

Where can NRIs, OCIs, Seafarers find the Annual Information Statement (AIS)?

NRIs, OCIs, and seafarers can access the AIS through the Income Tax Department's portal (www.incometax.gov.in). By logging into their accounts on the portal, individuals can navigate to the "Services" tab and select the "Annual Information Statement (AIS)" option, which redirects them to the AIS website.

What does NRIs, OCIs, Seafarers do if there is any incorrect or duplicate information in the AIS?

In the event of incorrect or duplicate information in the AIS, NRIs, OCIs, and seafarers can review the statement and compare it with their actual transactions. If discrepancies are identified, individuals can provide feedback and report the errors to the Income Tax Department for resolution.

CA Mitesh and Associates is India's leading NRI Taxation Firm with special focus on NRI Property matters and NRI Investments in India. Check out details of our NRI Tax Services.

Why Choose Our Services

CA Mitesh & Associates is a renowned Chartered Accountant and Tax Consultancy Firm with strong online presence and offices located in India. We pride ourselves on our specialized team dedicated to assisting NRIs, Expats, and Foreign Citizens with their tax matters, including ITR filing. We specialize in handling tax litigation matters for Non-residents, offering comprehensive services from notice handling to resolution strategies. With a team of experienced professionals, we ensure effective representation and resolution of tax issues, serving clients across India. 

1. Handling Non-resident Notices: We manage notices under various sections of the Income Tax Act, such as 148, 148A, 147, 142(1), 143(2), 144, and 131, ensuring comprehensive representation.
2. Preparation of Submissions: We prepare detailed submissions to address litigation issues effectively at the initial stage, aiming for swift resolution.
3. Alternative Approaches: We explore alternative strategies to alleviate tax demands, seeking the best possible outcomes for our clients.
4. Expert Representation: Our team provides expert representation to navigate complex tax issues and resolve disputes efficiently.
5. Liaison with Tax Officials: We communicate and collaborate with tax officials whenever necessary to resolve tax matters promptly.
6. Client Consultations: We engage in discussions with our non-resident clients to explain the significance of notices and develop action strategies accordingly.
7. Strategic Advice: We advise non-resident clients on adopting better strategies to address notices and mitigate potential risks.
8. Global Coverage: With our strong online presence and technology, we ensure comprehensive support for our clients worldwide.

At CA Mitesh & Associates, we have extensive experience in providing tax litigation services to non-resident clients, including NRIs and OCIs, on a regular basis.

 

DISCLAIMER

The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that we are not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. CA Mitesh and Associates is India's leading NRI Taxation Firm which is committed to helping people navigate complex tax laws and banking regulations. Our main aim is to assist the individuals with applicable laws & regulations compliance and providing support at each & every level to make sure that they stay compliant and grow continuously. For any query, help or feedback you may get in touch here - Appointment with CA. Please note the all consultations with the CA are Paid consultations.

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