My friend has purchased immovable property in financial year 06-07 in india. He is an NRI. Recently we have recd a notice from OFFICE OF THE ADDL DIRECTOR OF INCOME-TAX(INVESTIGATION) to furnish details of this purchase either personally or through authorised rep within a week. As he was abroad he could not do this. What should we do now. And what the implications for an NRI buying property in INDIA.
22 December 2008
Firstly there is no special implication of taxation in case a NRI buys property in India. Secondly, ask your friend to authorize by fax or mail any person who can be legally authorised u/s 288 of Income Tax act to represent him in the investigations. Ask him to furnish details like-Name, address and PAN of the seller. Furnish the sale deed. Furnish the payments details made to the seller.
CAclubindia
