Income Tax Department targets foreign investors over Indian share remittances
Business
The Income Tax Department is sending notices to foreign investors who purchased Indian shares but did not file tax returns, even if they did not actually earn any profits or dividends.
The move is based on remittance data, and legal experts say it's tricky because just buying shares doesn't usually mean you owe taxes.
Notices demand extensive documents, heighten scrutiny
Most notices focus on transactions from financial years 2019-2020, 2020-2021, and 2021-2022.
Investors are now being asked for loads of documents such as TDS records, valuation reports, share certificates, board meeting minutes, and remittance forms.
Experts warn this could lead to more scrutiny and make compliance tougher for anyone caught up in these proceedings.