Notice under clause(b) of section 148A of the Income-tax Act,1961

Notice under clause(b) of section 148A of the Income-tax Act,1961

I have received Notice under clause(b) of section 148A of the Income-tax Act,1961. Reason for the notice is the property Purchased under my wife's name in Assessment Year 2016-17. Property cost is more than INR 50 Lakhs. Property is purchased from my Income generated / sourced outside of India (Salary Income outside India).

We are staying outside India since 2011 . Wife has no income during that period. Both of us have not filed ITR in India since 2012.

How to respond to Income Tax Department Notice?

Asked 2 years ago in Income Tax

You will have to explain the source of fund used by your wife to purchase property wherein you need to show that income was earned from outside India and that you had financed that amount to her.

Further, did she deduct TDS while purchasing property in India?

Please file timely response or it could lead to making addition to your income. Also, I would recommend to hire a Chartered Accountant for filing such response.

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Thank you.

Naman Maloo

CA, Jaipur

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Thanks for response. What documents would be important to be included as part of Proof of income source out side India?
Salary Slips, Employment Letter, Bank Statements, Income Tax filed in foreign country, Indian Bank Account statements, anything else?

TDS was deducted and Notice is given based on the TDS

Asked 2 years ago

You need to first file the response explaining that the source of fund was income earned outside India. Also kindly mention your residential status. You need to explain the source through salary slips, bank statements duly reflecting the remittances and the amount spent towards property purchase.

We could help you filing the response for the same. The reply should be filed in time and appropriately in order to avoid any additions.