Why does an NRI receive an Income Tax Notice?
Posted on October 01 2020
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The Income Tax Department of the country has a pivotal role to play in national growth. The huge target of budget collection, for the year may not be an easy task because of the 120 Crore plus citizens of India, the base of tax payers is only about 4 crore or a mere 4 per cent of national population, wherein only 45000 show annual income over Rs One crore.
The Income Tax Department has started various initiatives and has been capturing information on financial transactions /activities relating to you through a monitoring system, (Non-filers Monitoring System - NMS). This year NMS has identified more than 44 lakh non-filers with potential tax liabilities for AY 2013-14.
Earlier the NMS in its previous cycles had identified more than 12 lakh and 22.09 lakh non-filers respectively, with potential tax liabilities. As a result of 1st and 2nd cycle of Notices being sent as per NMS, 30.68 Lakh returns have been filed and self-assessment tax of Rs. 4,733 crore has been paid by the identified target segment upto 31.03.2015. A large amount of the Taxes have been paid by Non Resident Indians (NRI / PIO / OCI) who have knowingly or unknowingly evaded Taxes and Tax Filing in India.
The Income Tax Department has started sending Income Tax Notices to non-filers including Non Resident Indians (NRI / PIO / OCI) for the Assessment Year 2009-10 onwards for Filing of Income Tax Returns.
I am a Non Resident Indian. Why have I received an Income Tax Notice for Non-Filing of Income Tax Returns?
A large number of NRI / OCI / PIO’s have received Notices from the Income Tax Department for Non Filing of Income Tax Returns.
As per the monitoring system put in place by the Compliance Management Cell, it has been seen that most NRI’s have not been filing their Tax Returns in India due to various reasons like ignorance or evasion. Most NRI / PIO / OCI live in bliss that they donot require to File their Income Tax Returns in India because they are NRI’s.
However this is a mis-conception. Few Non Resident Indians may not be required to File their Income Tax Returns in India, however most Non Resident Indians are required by law to File their Income Tax Returns in India.
TaxAssist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians.
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.
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