My friend got a job in Uk in 2000. He did not changed his residential status in income tax and banks. In 2007 he got pan card as indian resident and also opened a share trading account with his indian money. His mother duely gifted him some shares. By trading through these shares he earned indian income in 2012 and properly filed his audited tax return. Now he has received a querry(not scrutiny) about the transactions, other source of income and all personal details. During the entire period no funds were transferred to or received from UK. Accounts are all clean and due taxes have been paid.
Now at this stage should he declare his PIO status and inform RBI and opt for PIS scheme? Is there any serious violation?
