Income tax department slaps notices on foreign investors with no earnings

The Income Tax department has issued Section 148 reassessment notices to multiple offshore investors, FPIs, and fund houses for simply purchasing Indian listed or unlisted shares without booking profits or receiving dividends, covering FY19-20 through FY21-22. Tax experts argue share purchases by non-residents do not generate taxable income and that the reassessment regime is being misused to question non-income transactions, creating uncertainty and compliance burden. The notices, triggered largely by Form 15CA/CB remittance data and absent ITR filings, could deter foreign portfolio flows into Indian markets if not clarified.