India, June 28 -- Sending money to India is routine for millions of Non-Resident Indians (NRIs). Still, a recent case has highlighted how inadequate documentation can turn a genuine family remittance into a prolonged tax dispute.

A US-based NRI who transferred Rs.11 lakh to his parents in India received an Income Tax notice and spent nearly six years contesting the matter before the Income Tax Appellate Tribunal (ITAT).

The tribunal eventually quashed the notice after bank records established that the transfer was a genuine gift to parents and not unexplained income, according to tax advisory platform TaxBuddy.

Under the Income-tax Act, gifts received from specified relatives, including parents, spouses, children and certain close fami...