My husband a researcher by profession has received a summon from the Income tax department signed by the Assist Director asking to appear in person else attracting penalty and other complications. We just have no idea what this means and why this questioning which as a NRI he has paid tax in the respective countries.
27 November 2011
Just he can appear with the Income tax return filed copies with details. then any clarification asked in hearing can be given. if difficult take your CA also with him for better understanding
27 November 2011
Thanks Ramesh. We are abroad now and it is difficult to get all details from the respective countries where he worked as tax was automatically deducted and those countries came under double taxation policy. Is is mandatory for him to appear or can the representative do it as they have mentioned in the letter. We are thinking of a professional representing, as we may not mostly understand most of the things.
27 November 2011
In case you are in India surely you can attend and take time to produce the details. if you are in abroad you can send one letter mentioning the reason and intimate the date of appearing in register post with acknowledgement or give letter of authority to your auditor to appear the same. both ways are possible
27 November 2011
Sounds comforting. Thanks Ramesh. We havent yet decided on the Auditor while we are talking to few people. Is this an expensive affair? Kind of ironically amusing that my husband is a research professional where not much money, specially for the Income tax department to question and send such scary letters.
27 November 2011
Generally there should be a scrutiny norms for every assessment year and selection criteria fixed by the Income tax department. if the transactions are very clear no need to worry much about the summon. just produce the details which they are asking.No need to panic or fear about the questions.
Appearing to Income tax authority fees based on the consultant grade you are hiring, better you go for consultants through know persons here