Indian residents of Germany receive Indian tax notices mostly for property purchases or sales, large bank deposits, mutual fund redemptions or a mismatch with the annual information statement. Most are answered online by showing non-resident status and the source of funds. We reply through your e-filing account, file any return that is due and claim relief under the India-Germany tax treaty where it applies.
- Document route
- Indian Embassy or Consulate attestation
- Time difference
- 3.5 to 4.5 hours behind IST
- Handled in India at
- Income-tax e-filing portal
- Travel to India
- None; faceless
How it works from Germany
First we establish your residential status for each year in question, from passport stamps and your German registration and payslips. A person who spent fewer than 182 days in India in the year is generally non-resident, and India then taxes only income that arises in India. We then match the transaction the department has flagged against bank statements, usually showing that the money came from German salary remitted to an NRE account, which is not taxable in India.
The reply is filed on the portal within the time given, with a request for a video hearing if the officer wants one. Where income was in fact taxable, for example rent, capital gains or NRO interest, we file or revise the return, compute interest and seek waiver or reduction of penalty where the default was not deliberate. For treaty relief you need a tax residence certificate from your German tax office and an online Form 10F. Reassessment notices for older years are checked for limitation and jurisdiction before any reply on merits.
What is different for NRIs in Germany
- Germany taxes its residents on worldwide income, so Indian rent, interest and gains must also be reported in Germany. How double tax is relieved depends on the type of income; coordinate with your Steuerberater.
- Update your email, mobile number and foreign address on the Indian e-filing portal, and set your residential status correctly with your bank so that accounts are NRE or NRO.
- Ignoring a notice leads to a best-judgment assessment, a demand and adjustment against refunds. It is far easier to answer than to appeal.
Step by step from Germany
Free review call
Calls are held in the German morning, while offices in India are open. We read your papers on a tax notice first, so the call is about your options and not a repeat of the facts.
Authority from Germany
Where a representative must act for you in India on a tax notice, you sign before the consular officer at the Indian mission for your federal state, since a German apostille is not accepted in India. We draft the document and send signing instructions.
Work in India
In India, we fix your residential status year by year, match the flagged transaction to bank records and file the reply and any return due. Updates for clients in Germany go by email and WhatsApp with scans of whatever is filed.
Result and handover
At the end you receive the closure or assessment order and we appeal if the result is wrong. Originals are couriered to your address in Germany if you need them.
The law in full
This page covers what changes when you handle a tax notice from Germany. For the Indian law, the complete document checklist, common mistakes and more questions, read our main page on Income Tax Notices & Appeals. For other matters, see all legal services for NRIs in Germany or the Tax, Banking & FEMA practice area.
Questions from NRIs in Germany
I live in Germany and have no income in India. Why did I get a notice?
Usually because a high-value transaction, such as a property purchase or a deposit, was reported against your PAN and no return was filed. A documented reply normally closes it.
Do I need to come to India for the hearing?
No. Assessments are faceless and conducted online. We represent you on a power of attorney or through your portal authorisation.
Can tax deducted in India be credited in Germany?
It depends on the income and the treaty article. Keep the Indian tax deduction certificates and assessment orders for your German return.