NRI buys Rs.79 lakh Mumbai flat using NRE funds, gets 'unexplained cash' tax notice; here's what happened next
New Delhi, Aug. 16 -- A non-resident Indian (NRI) and US citizen, who has been living in America since April 2002, received an income tax notice over the source of funds used to purchase a residential flat in Kandivali West, Mumbai.
He booked the property in 2011 for a consideration of Rs.79.9 lakh from a Mumbai-based builder. The sale agreement with the builder was executed on July 20, 2015, and he made payments towards his flat between 2011 to 2018.
Most of these payments were made by the NRI man through his NRE/NRO account with HDFC Bank. Some payments towards the property were also made by his brother, who is an NRI as well.
However, he did not file an income tax return (ITR), thus the tax department reopened his case and issued a ...
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