Resolving Tax Notices for NRIs - Income Tax & FEMA Cases
FEMA Violation Notice - Resident Account Not Converted to NRO
NRI received Enforcement Directorate notice for maintaining resident savings account post NRI status change. We submitted settlement application with FEMA compounding application and account conversion evidence.
High Value Transaction Notice - NRI Mutual Fund Redemptions
NRI received notice for multiple mutual fund redemptions above ₹10L flagged under Annual Information Statement. Established residential status, TDS credit, and DTAA exemption claim.
Section 148 Reassessment - NRI Property Sale, Hyderabad
NRI based in USA received a Section 148 notice for an apartment sold in 2019 where capital gains were reportedly not declared. We computed indexed capital gains, filed revised ITR, and responded to notice.
Resolving Tax Notices for NRIs - Income Tax & FEMA Cases
Non-Resident Indians receive tax notices for property sales, undeclared foreign remittances, and bank account compliance gaps - often without warning. SMACAS represents NRIs across the USA, UK, Gulf, and Australia through Power of Attorney, handling all proceedings in India without requiring the client to travel.
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Frequently Asked Questions
What happens if an NRI ignores an income tax notice in India?
Ignoring a tax notice leads to an ex-parte assessment - the AO passes an order without hearing the NRI - often resulting in maximum tax demand plus interest and penalty. The department can then attach Indian bank accounts, property, or mutual fund holdings. Responding through an authorised CA representative is critical even if the NRI is abroad.
Can an NRI receive a Section 148 reassessment notice for a property sold in India?
Yes. Property sales are reported by registrars to the Income Tax Department. If the NRI did not file an ITR for the year of sale or if the declared sale value appears below the circle rate, a Section 148 notice can be issued for up to 10 years from the assessment year. Proper capital gains computation and timely ITR filing prevents reassessment.
What is an NRI's obligation under FEMA for funds held in India?
NRIs must convert resident savings accounts to NRO accounts within a reasonable period of acquiring NRI status. Repatriation of funds above USD 1 million per year requires CA certificate in Form 15CA/15CB. Failure to comply can result in FEMA penalty notices from the Enforcement Directorate.
I am an NRI in the USA - can a CA in India represent me for a tax notice?
Yes. SMACAS represents NRIs located abroad through a Power of Attorney. The NRI grants PoA to the firm, and we handle all correspondence, appearance before the AO, and filing of replies on their behalf. Most matters are resolved without the NRI needing to travel to India.
Need help with a tax notice?
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