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NRE and NRO bank accounts sit at the centre of most income tax notices issued to NRIs in India. Interest credits, large inward remittances, repatriation transactions, and TDS deductions are routinely reported by banks to the Income Tax Department. When these figures do not match what appears on the income tax return, automated notices are triggered. Most cases do not involve tax evasion but gaps in reporting, incorrect account classification, or missed disclosures. Understand

Residential status mistakes often trigger income tax notices when the information declared in bank forms, PAN databases, or ITR filings does not match stay details under Section 6 of the Income Tax Act. Most notices arise when NRIs are incorrectly marked as residents, or residents declare NRI status without meeting the day-count conditions. These mismatches lead to confusion in foreign income taxation, DTAA claims, TDS availability, and global income reporting. With cross-ver

EXC-001 cash transaction alerts are automated income tax notices issued when banks report high-value or unusual cash deposits that do not align with the income declared in the tax return. These alerts arise from SFT and AIS data, where banks flag deposits exceeding specified thresholds or patterns that appear inconsistent. The purpose is to verify the legitimacy of the cash source and ensure proper tax reporting. When an EXC-001 notice appears, clear documentation, accurate r

Income tax notices for NRIs generally arise from mismatches in AIS, incorrect reporting of NRE or NRO account income, or missing details related to foreign income that trigger automated alerts under the Income Tax Act 1961. Most notices link back to unreported NRO interest, rental income, capital gains, or remittances that banks and institutions report through SFT. Any inconsistency between AIS and ITR leads to e-campaign messages or scrutiny. Platforms such as TaxBuddy offer

Foreign Tax Credit allows resident taxpayers in India to avoid double taxation on income earned abroad by offsetting tax already paid in another country. The process requires accurate reporting of foreign income, filing Form 67 , and submitting supporting evidence before filing the return . Income earned outside India must be declared in Schedule FSI and Schedule TR to compute the eligible credit under Indian tax rules. Each country’s tax payment is evaluated separately, and

The TDS refund process for NRIs revolves around reconciling tax deducted at source on Indian income with the actual tax liability computed under the Income Tax Act, 1961. Many NRIs experience higher TDS because banks, tenants, or buyers apply fixed rates regardless of taxable thresholds or eligible exemptions. Accurate reporting of income, TDS credits, and bank details plays a central role in ensuring timely refunds. Platforms like TaxBuddy streamline these steps by valida

NRIs earning income from salary or investments in India are required to file an Income Tax Return (ITR) if their total income exceeds the basic exemption limit. The tax liability depends on the type of income earned—such as salary, interest, capital gains, or rental income—and whether tax has already been deducted at source (TDS). To ensure compliance and claim eligible refunds, NRIs must file their ITR accurately within the due date prescribed by the Income Tax Department.

Income Tax Department notices issued to NRIs often arise from TDS mismatches, foreign income disclosures, bank account reporting gaps, or incomplete documentation submitted during the year. Addressing these notices requires accurate interpretation, timely response, and full compliance with the Income Tax Act 1961. Many NRIs miss critical steps because of distance, unfamiliar procedures, or evolving reporting norms. TaxBuddy offers structured notice support to help NRIs unders

Capital gains tax for Non-Resident Indians (NRIs) applies to income earned from selling capital assets located in India, such as property and shares. The latest updates from Union Budget 2025 have refined how these gains are classified, taxed, and reported. With changes in tax rates, indexation rules, and TDS compliance, understanding these provisions is crucial for accurate reporting and timely filing. NRIs must also comply with repatriation and exemption rules under the In

Double taxation occurs when income earned abroad by an Indian resident is taxed both in the foreign country and in India. Section 90 of the Income Tax Act, 1961, allows residents to claim relief through the Double Taxation Avoidance Agreement (DTAA) signed between India and other countries. This ensures that the same income isn’t taxed twice. By using DTAA provisions, taxpayers can either claim exemption or receive credit for taxes already paid overseas, depending on the tr