Income Tax probes NRIs unlisted share deals demanding proof of funds and valuations

Published on 24 April 2026

Deals from 2019 to 2023 are now under scanner

India’s Income Tax Department has issued notices to NRIs and offshore entities to explain investments in unlisted shares, focusing on the source of funds and how valuations were set. Officials say they’re cross-checking demat records for transactions between 2019 and 2023, flagging possible tax evasion, round-tripping, and money laundering, with non-compliance risking tax demands and litigation.

Notices seek explanations for NRI and offshore investments in unlisted shares
Authorities scrutinize valuation methods and where money came from
Demat data is being used to review deals from 2019 to 2023
Concerns include tax evasion, round-tripping, and money laundering

#money laundering #unlisted shares #nri #income tax #valuation

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

Income Tax probes NRIs unlisted share deals demanding proof of funds and valuations

The full experience is on mobile.