Income Tax Notices to Non Resident Indians. Is it fair? ( CA.CIBY K.C.,FCA is a practicing Chartered Accountant in India. You are welcome to ask your queries to him. email: cibykc@yahoo.com mob: +91 9745608596. FAX: 04862-223340 web: www.cibykc.com )

1. Income Tax Notices to
Non Resident Indians. Is
it fair?
CA.CIBY K.C.,FCA
www.cibykc.com

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"Why do you look at the speck that is in your brother’s eye, but
do not notice the log that is in your own eye? ” -Bible
There are two types of Non Residents in India.
Non Resident Indian
Any other Non Resident persons (Ex: Foreign nationals, FII, etc.)
Non Resident Indian can only be individuals.
The individual may be an Indian citizen or Individuals of Indian
Origin.
He is not a resident in India.
The tax liability of a person depends on residential status. In
order to be a resident in any previous year, an individual have to
satisfy any one of the conditions.
He should have been present in India in the previous year for at
least 182 days OR
Stayed greater than or equal to 60 days in a year and greater
than 365 days in 4 preceding previous years.

3. Income
earned outside India is not taxable
for NRI. But income earned in India is
taxable for NRI. All Indian citizens who are
liable to pay tax under the Income Tax Act,
1961 or are required to enter into financial
transactions in India should have a
Permanent Account Number (PAN).
Tax returns are not accepted without PAN.
Therefore, if a tax return is to be submitted,
NRIs must obtain a PAN. It is also mandatory
for NRI to submit the PAN in all financial
transactions.

4.  Examples
(1)
Purchase of property in India.
(2)
Sale of property in India.
(3)
Payment for purchase of vehicles in India.
(4)
Payments for foreign visits.
(5)
Payments for securing a telephone
connection.
(6)
Making Time Deposits in a Bank.
(7)
Transfer of funds from India.
(8)
Transfer of funds to India.
(9)
Investment in shares.
(10)
Investment in securities.
(11)
Opening of Demat Account with the
depositor.

5. Read more in our blog
http://www.cibykc.com/income-tax-
notices-to-non-resident-indians-is-it-fair/
CA.CIBY
K.C.,FCA is a practicing
Chartered Accountant in India. You are
welcome to ask your queries to him.
email: cibykc@yahoo.com mob: +91
9745608596. FAX: 04862-223340 web:
www.cibykc.com
www.cibykc.com

6. Read more in our blog
http://www.cibykc.com/income-tax-
notices-to-non-resident-indians-is-it-fair/
CA.CIBY
K.C.,FCA is a practicing
Chartered Accountant in India. You are
welcome to ask your queries to him.
email: cibykc@yahoo.com mob: +91
9745608596. FAX: 04862-223340 web:
www.cibykc.com
www.cibykc.com