NRI received income tax notice 161(1a)

Understanding the Summon The summon under Section 131(1A) of the Income Tax Act, 1961, authorizes the income tax authority to conduct an inquiry and gather information.

 Key Points 1. _Foreign Income and Assets_: The notice asks you to disclose all foreign income and assets.

2. _No Specific Year Mentioned_: The notice doesn't mention a specific year, which might indicate a general inquiry.

3. _Previous Tax Compliance_: You've been filing tax returns in India and claiming refunds for the interest income.

4. _Short Notice Period_: You've been given a short notice period of 7 days to appear in person.

Possible Courses of Action Considering your situation:

1. *Request for Extension*: You can request an extension of the notice period, citing your abroad location and the short notice.

 This might give you more time to gather documents and respond.

 2. *Authorizing a Representative*: You can authorize a family member or a tax professional to represent you before the income tax authority.

They can provide the required documents and information on your behalf.

3. *Submission of Documents via Email*: While the notice asks for your personal appearance, you can try submitting the required documents via email.

However, this might not be acceptable, and you should be prepared to provide additional information or clarification..

 4. *Seeking Professional Help*: Consult a tax professional or chartered accountant who can guide you through the process, prepare the necessary

Compliance with sec Sec 6(1) and sec 6 (2)

Compliance with Section 6(1) and Section 6(2) of the Income Tax Act, 1961, relates to the residential status of an individual.

 Section 6(1): Residential Status Section 6(1) states that an individual is said to be resident in India in any previous year if:

1. _He is in India for 182 days or more_: The individual has been in India for 182 days or more in the previous year.

 2. _He is in India for 60 days or more_: The individual has been in India for 60 days or more in the previous year and has been in India for 365 days or more in the four preceding years.

 Section 6(2): Not Ordinarily Resident (NOR) Section 6(2) provides that an individual is said to be "not ordinarily resident" (NOR) in India in any previous year if:

 1. _He has not been resident in India for 9 out of 10 preceding years_: The individual has not been resident in India for 9 out of 10 preceding years.

2. _He has not been present in India for 730 days or more in 7 preceding years_:

The individual has not been present in India for 730 days or more in 7 preceding years.

Compliance Requirements To comply with Section 6(1) and Section 6(2), individuals must: 1. _Determine residential status_: Determine their residential status for the previous year.

2. _Maintain records_: Keep records of their stay in India, including passport entries, visa details, and other supporting documents.

 3. _File income tax returns_: File income tax returns (ITRs) accordingly, considering their residential status. Implications of

Receiving a tax notice can make one feel intimidated, especially from the DDIT/ADIT (inv).

Based on my experience handling similar cases, here’s how you can address this situation at this moment. 

The notice likely is a result  from data matching or a report of financial transactions, even if your declared income is minimal/if you were having a refund.

The request for details on foreign income and assets indicates they may be investigating undisclosed offshore assets or income. May be you had pension funds abroad, ESOP etc and lets hope that information is being asked for clarifications. 

Here are a few things you may  do

1. Some clarifications may be needed for any sought foreign income/transactions. So get all your papers/documents in order. 
2. Write to the AO regarding your inability to attend at this juncture with the necessary proof of you being NR 
3. Draft the reply to the notice, taking into account all the facts of the case. I would rather suggest you seek professional help to ensure that your response is accurate.
4. Keep a file or document of all your communications.

Thanks Lakshmi, wanted to know if NRI have to disclose foreign income in india? 

Hi Rama and Lakshmi, Thank you very much for response. Basically they are asking all this details. Do you think there is some big issue? I didn't disclose my foreign income in india because I thought NRI don't need to. 

Well, if you are non resident during all the years, you neednt worry about the disclosure part.

Take the workings and submit all the details.  

They may have received some information based on the exchange of information. So if you are NR, why worry?

Make sure the workings and submissions are correct and accurate. 

Hire professional help, if needed. 

Thanks Lakshmi. Could you please explain more on "They may have received some information based on the exchange of information." 

Also, they called me in Pune office. I thought to ask if you are in the same location.

Happy to help. 

Please check the direct message .