As per the Income-tax laws in India, if your total income is less than the basic exemption limit for the relevant fiscal year, then you are not liable to file a return of income.
We have observed that in case of transactions carried out on the stock exchange, the tax department typically issues such notices.
We would need to peruse the letter received from the tax department in order to precisely let you know the way forward. Typically, such notices request for information pertaining to the tax returns filed/not filed.
However, where the notice requires you to file a tax return in India, at the outset it would be pertinent to evaluate whether as per the Indian tax laws you are required to file a tax return in India. In case you are not required to file a tax return, a letter appropriately justifying the non filing of the tax return as per the Indian tax laws would need to be communicated to the tax department. It is important to reply to such notices appropriately, in order to avoid any adverse consequences in future.
We shall be glad to assist you in analyzing the letter received by you and filing a response for the same or filing a tax return in India, if required.
Answered by NRIMatters Team