NRI Taxation India: Notice Under Section 148A, 148 and e-campaign

The Income Tax Department, leveraging advanced database systems, now captures various financial transactions of taxpayers, including Non-residents (NRIs, OCIs). Despite assumptions that foreign source funds aren't taxable, the absence of Indian Income tax filings prompts the department to verify potential tax evasion and the sources of these transactions.

Types of Notices Issued

Following notices are typically issued:

1. E-Campaign Notices: Targeting high-value transactions without corresponding ITR filings, these notices prompt responses online, helping NRIs address potential issues promptly.

2. Show Cause Notice under section 148A: A precursor to assessment proceedings, this notice addresses significant financial transactions captured by the department's information system.

3. Notice under section 148: Initiates assessment proceedings, requiring the filing of an ITR for the relevant year in which significant financial transactions occurred without corresponding filings.

4. Scrutiny Proceedings Under Section 147/143(2) and Notices under section 142(1): Furthering assessment proceedings, these notices demand detailed responses within set timelines, aiming to ensure tax compliance.

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.

Types of Financial Transactions Captured

The department monitors various transactions, including property transactions, mutual funds or share trades, NRE/NRO deposits, and dividend incomes, among others.

• Purchase or sale of immovable property in India
• Purchase or sale of mutual funds in India
• Purchase or sale of shares in India
• NRE/NRO Fixed Deposits in India
• NRE/NRO Deposits Interest income in India
• Dividend income from shares/mutual funds
• Foreign Remittances/Repatriation of money

Importance of Registered Email Address

Maintaining a valid and registered email address with the income tax department is crucial. Notices, including e-campaign notifications and scrutiny proceedings, are typically communicated via email. Failure to update or maintain a registered email address may result in missed notices, potentially leading to tax demands and penalties.

FAQs – NRI Income Tax Notices 148, 148A, Other Notices

Question: Should NRIs ignore Income Tax Department Notices under section 148, 148A, E-campaign Notices?

Answer: Ignoring these notices can lead to unnecessary consequences. Seeking immediate advice from a tax consultant and responding accurately and promptly is advisable.

Answer: These notices are primarily issued to NRIs engaging in financial transactions in India without corresponding income tax filings.

Question: How to check if a notice has been received or not?

Answer: For PANs registered with the Indian income tax department, log in to the account and check the 'Compliance' or 'Pending Action' tab. For unregistered PANs, first register on the official website and check the notice status.

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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