If you receive an Indian income tax notice while living abroad, log in to the e-filing portal, identify the type of notice and the reply date, and respond online within time, with documents. Typical triggers for NRIs are a property purchase or sale, large bank deposits, tax deducted at source without a matching return, or doubts about residential status. An NRI is taxed in India only on income that arises or is received in India, and treaty relief is available with a tax residency certificate.
- Respond through
- E-filing portal, online
- NRI is taxed on
- Indian-source income only
- Treaty relief needs
- TRC and Form 10F
- First appeal within
- 30 days of the order
Notices NRIs commonly receive
- Intimation after processing of a return, showing a mismatch in tax credit or an adjustment. Often resolved by a rectification request.
- Defective return notice asking you to cure an error within fifteen days.
- Enquiry before assessment calling for a return or information where none was filed.
- Scrutiny notice selecting your return for detailed examination, now conducted in faceless mode.
- Reassessment notices where the department believes income escaped assessment, preceded by a show-cause stage at which you can object. Under the 1961 Act these are the section 148A and 148 notices.
- Compliance or "high-value transaction" messages based on reports from registrars, banks and mutual funds.
- Demand notices and refund adjustments for old outstanding amounts.
Each has its own time limit and consequence. Our guide what to do when a notice arrives walks through the first forty-eight hours.
Residential status: the question behind most disputes
Tax liability turns on whether you were resident in India in the year. In broad terms you are resident if you were in India for 182 days or more. For an Indian citizen or person of Indian origin who lives abroad and visits India, the alternative sixty-day test is relaxed to 182 days, except that it becomes 120 days where Indian-source income exceeds fifteen lakh rupees, in which case the person is treated as "not ordinarily resident". An Indian citizen with Indian income above that level who is not liable to tax in any other country is deemed resident but not ordinarily resident, a rule relevant to people in zero-tax jurisdictions.
A non-resident, and broadly a not-ordinarily-resident person, is not taxed in India on foreign income and does not report foreign assets. Many notices arise simply because a return was filed with the wrong status, or not filed at all in a year when tax was deducted. We establish status from passport stamps and travel records before answering anything else.
What India can tax and how treaties help
For a non-resident the taxable items are rent from Indian property, capital gains on Indian assets, interest on NRO deposits, dividends from Indian companies, and salary for services rendered in India. Interest on NRE and FCNR deposits is exempt while you remain a person resident outside India. Tax is usually deducted at source by the payer at rates higher than for residents, so a return is often worth filing to claim a refund.
India has double taxation avoidance agreements with all the major countries where Indians live. A treaty can lower the Indian rate on interest, dividends and royalties, or allocate taxing rights to one country. To claim it you need a tax residency certificate from your country and an electronic Form 10F. Tax paid in India is then normally creditable against tax on the same income at home; that side should be checked with your local adviser. Property sales are covered separately under TDS and capital gains.
How we respond
Assessments are faceless: there is no officer to meet, and everything is uploaded through the portal. That makes the written submission decisive. We obtain your Annual Information Statement and tax credit statement, reconcile them with bank statements, and prepare a reply that explains each flagged transaction with evidence of source, for example the sale deed and remittance trail for a property purchase funded from abroad. Where needed we ask for a video hearing, which the scheme allows.
You can authorise us on the portal as your representative, so there is no need to share your password. If you have never registered, we help you do so using your PAN and an overseas mobile number or email.
Appeals, penalties and old demands
An adverse order can be appealed to the Commissioner (Appeals) within thirty days, then to the Income Tax Appellate Tribunal, and on questions of law to the High Court. Non-residents may alternatively take a draft order to the Dispute Resolution Panel. Stay of demand is usually granted on payment of a part of the disputed amount. Penalties for under-reporting range from fifty to two hundred per cent of the tax, and immunity can be sought where tax is paid and no appeal is filed. Reassessment notices issued out of time or without the required approval are open to challenge by writ petition, a route that has succeeded for many taxpayers.
Form and section numbers mentioned on this page are those long used under the Income-tax Act, 1961, which still governs earlier years. The Income-tax Act, 2025, in force from 1 April 2026, keeps the same requirements with new section numbers and, in some cases, renumbered forms.
Mistakes that cost NRIs time and money
- Filing as "resident" out of habit after moving abroad.
- Not filing in a year when tax was deducted or property was bought.
- Letting the PAN-linked email and phone number go out of date.
- Answering a notice in a hurry without checking what data the department holds.
A typical situation
A property purchase query closed in one reply
A professional abroad receives a notice asking for the source of funds for a flat registered in his name. He has never filed in India. The reply attaches passport pages establishing non-resident status, the overseas salary slips and bank statement showing the remittance, and the NRE account statement showing payment to the builder. The proceeding is closed without addition. An ignored notice in the same situation would have led to the purchase price being taxed as unexplained investment.
Illustration only, based on patterns we commonly see. It is not a real client's case and outcomes depend on the facts.
If you live in...
The Indian law is the same wherever you live. These are the points that differ by where you are.
USA and Canada
US and Canadian residents can claim treaty rates on Indian interest and dividends with a residency certificate and Form 10F.
UK and Europe
From April 2025 Indian income of long-settled UK residents may be taxable in the UK as well; make sure credit for Indian tax is claimed.
UAE and the Gulf
Check the deemed-residence rule if Indian income exceeds fifteen lakh rupees; it changes status to "not ordinarily resident" but does not tax Gulf salary.
Country pages: UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain
Australia, New Zealand and Asia
Singapore and Australian residents should keep overseas tax returns handy; they are the simplest proof of the source of money sent to India.
Country pages: Australia, New Zealand, Singapore, Malaysia
Detailed country pages for this service: Indian Income Tax Notice Help for Qatar NRIs, Indian Income Tax Notice Help for Germany NRIs
Documents you will need
To assess the notice we need:
- Copy of the notice or portal screenshot
- PAN and e-filing login status
- Passport pages showing travel for the year
- Indian bank statements: NRE, NRO, savings
- Returns filed in India, if any
- Sale or purchase deeds for the year
- Tax residency certificate from your country
- Form 26AS or Annual Information Statement
How we handle it for you
Notice triage
We identify the provision, the deadline and what the department already knows from its data.
Fact reconciliation
Residential status is fixed and every reported transaction is matched to a source.
Reply and documents
A reasoned response is filed online, with a request for video hearing where useful.
Follow-up
We answer further queries and track the order.
Appeal or closure
An unfavourable order is appealed with a stay application; refunds due are pursued.
Frequently asked questions
Do NRIs have to file an income tax return in India?
Yes, if Indian income exceeds the basic exemption limit, if you have capital gains taxed at special rates, or if you want a refund of tax deducted at source. Filing is also advisable in any year with a significant property or investment transaction.
I received a notice about buying property in India. Why?
Registrars report property transactions above set values. If no return explaining the source of funds is on record, the system generates a query. A reply showing the remittance from your overseas account usually closes it.
What happens if I ignore an income tax notice?
The officer can complete a best-judgment assessment on the information available, raise a demand with interest and penalty, adjust future refunds and, for serious defaults, begin prosecution. Outstanding demands can also complicate property sales and repatriation.
How do I prove I am a non-resident?
By the number of days spent in India, shown through passport entry and exit stamps, visa or residence permits and, where needed, employment and tax records from the country of residence.
Can I avoid being taxed twice on the same income?
Usually yes. The treaty between India and your country either gives one country the taxing right or lets you claim credit at home for tax paid in India. A tax residency certificate and Form 10F are needed for treaty rates in India.
Can a tax notice be answered without visiting India?
Yes. Proceedings are conducted electronically. An authorised representative can file replies and attend video hearings on your behalf.
Can I update my email and phone on the tax portal from abroad?
Yes. Contact details can be updated online, and overseas numbers and email are accepted for one-time passwords.
Is interest on my NRE account taxable?
No, while you remain a person resident outside India under the exchange control law. Interest on NRO accounts is taxable.
