Should NRIs file Income Tax Return / ITR Forms in India?
Whether it is compulsory for a NRI to file an income tax return in India or not” is one of the most common questions asked by every Non-resident Indian (NRI)? And the answer of this question is it depends. For example, if you are an NRI for financial year 2015-16, and you stayed abroad for more than 180 days, then your status becomes NRI, but you are entitled for basic exemption limit also, which is 2.5 lakh in India at present. Also, if you have income in Indian rupees plus your income from different sources like rental from the house, dividends earned from stock, interest earned from fixed deposit, etc, then it’s mandatory for you to file an income tax return.
How To Find If An NRI Have To File It Return?
You must check your NRI status in granted financial year in order to determine income tax return in India as well as what was the fundamental exemption limit in that year. For instance, the basic exemption limit was 2 lakh in the financial year 2013-14 and was further raised to 2.5 lakh in financial year 2014-15.
If you stayed outside India for more than 180 days in that financial year, then you are an NRI as well as your global income will not be taxed in India. On the other side, if you stayed less than 180 days in a financial year, then you are a normal Indian resident and your global income is subject to income tax in India.
If your total income from all different sources mentioned in the first paragraph doesn’t exceed 2.5 lakh, then you don’t need to file ITR forms, but you must file ITR forms if it does. For this, you can take help from NRI Tax Consultancies and CA Firms in Pune.
If TDS (Tax Deducted at Source) is automatically deducted from your NRO (Non-Resident Ordinary) fixed deposit, then you should file IT return to get that money back by claiming an income tax refund, but it is not obligatory. However, its mandatory for NRI to ITR forms if total income is more than 2.5 lakh (in Indian currency). So, ensure you total all your income in various bank accounts and if it is more than 2.5 lakh in that financial year, then file your income tax return.
Read More : Complete Guide On Taxable Income
Keep in mind that filing IT return is not like to pay taxes. If you are making investment in tax saving options, you can possibly reduce your taxable income, but have to file ITR Forms to state those tax saving investments