Is property bought in India through saving made from UAE income taxable?

Is property bought in India through saving made from UAE income taxable?

Legal expert answers readers’ queries on NRI issues

By N.R.I. Problems/H. P. Ranina Published: Mon 24 Apr 2023, 12:40 PM Last updated: Mon 24 Apr 2023, 12:58 PM

Question: I have received a tax notice from the I.T. Department in India. This relates to my purchasing a flat in India worth Rs11 million, partly funded by my wife and myself. We paid for the flat from our salary and savings in the UAE. What should I do?

ANSWER: You need to reply to the tax notice and give full details of the source of funds from which the purchase of the flat has been financed. You have purchased the flat from your earnings in the UAE and therefore you must have remitted the funds through the bank or from your Non-Resident (External) Account. This notice is issued to most property purchasers in India as the tax authorities want to ascertain the source of the funds. As a non-resident Indian, the salary which you and your wife have earned in the UAE is exempt from tax in India. Therefore, there are no tax implications as you have not evaded any tax in India. Your reply to the tax department giving the relevant information will