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Non‑Resident Indian bought property, TDS was deducted, but no income tax Return filed. Result? INR 66.95 lakh treated as unexplained money. Here’s how Income Tax Appellate Tribunal Ahmedabad saved him — and the clear lesson for every Non‑Resident Indian
Brijesh (the taxpayer) was a non‑resident Indian who had settled in the United States of America for many years. He bought a residential property in India for INR 66.95 lakh. His assumptions were that Tax deducted at source was already deducted, there was No taxable income in India, & there was no need to file an income tax return. That single assumption triggered everything that followed.
This case isn’t about winning or losing. It’s a wake‑up call. Even if you are a non‑resident Indian, Property purchases are tracked, Permanent Account Number‑linked data is monitored, & Non‑filing can trigger harsh presumptions
One golden rule every Non‑Resident Indian’s must follow : If you buy property in India, file your income tax return, declare the transaction, & monitor notices linked to your Permanent Account Number. Filing an income tax return is not always about paying tax. it’s about protecting yourself.
If you buy property in India:
non‑resident Indians buying property in India, remember this rule. Buy property ➝ File your ITR & No income ≠ No compliance. ITR filing is protection, not just taxation. Filing an Income tax return is not always about paying tax; it’s about protecting yourself with documentation. For NRIs, ITR filing is not about tax liability. It’s about legal safety. Important compliance reminder for non‑resident Indian Property purchase in India triggers tax reporting. Accordingly, file your ITR, declare the transaction & track PAN-based notices. Non-filing can convert genuine transactions into litigation.
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