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Income Tax Return is abbreviated as ITR. It is a document used to report income from several sources and pay taxes to the Income tax Department. It offers comprehensive information on an individual’s income and tax-saving investments made throughout a fiscal year. This post will cover how to submit an Income Tax Return (ITR) for an NRI in India. 

How to Submit Itr for Non-resident From Nri Investment Advisor in Pune’s Point of View:

Step 1 – Establishing their right to reside in India.

Each fiscal year, it is essential for the NRI to identify their right of residence. This is calculated by the number of days of stay specified in Section 6 of the Income Tax Act 1961. (IT Act). Indian nationals departing India or NRIs visiting India are permitted to remain in India for particular number of days depending on their reason of travel abroad like employment , sailing etc. and their annual income in India typically wether above or below 15 lacs INR;  without losing their non-resident status. Therefore, the dates of their arrival and exit from India are examined.

Step 2- Income and Tax Reconciliation Using Form 26AS , AIS & TIS

Contrast the TDS offset or input tax they paid on their tax return with the TDS offset or input tax reported on Form 26AS.

Step 3- Calculate Taxable Income

Income tax is charged on NRIs in India on interest on bank accounts, dividends or capital gains on stocks held in India, and rental of residential property. Additionally, income is reduced by applicable deductions, such as the Section 80C deduction. 

Step 4: Calculate the Tax Liability

The individual’s tax rate determines tax liabilities. For all NRIs, the exemption ceiling is Rs 2.5 lakh, subject to reduction or permission. 

Step 5-Compensation for rights protected by double taxation treaties 

Double taxation treaty exemptions may apply if NRI income is taxed both in India and overseas (DTAA). Credit  under the DTAA are dependent on the kind of income (income may be fully tax-exempt or taxed at a lower rate). If payment is taxed under the DTAA, NRIs must pay taxes in India and may claim a deduction for taxes paid on tax obligations in their place of residence under specific circumstances. To apply for tax exemption, they must provide a valid Tax Payment Certificate / Return of Income  issued by the NRI’s country of residency.

Step 6- Choosing a strict ITR form for a non-resident alien.

NRIs must submit returns in ITR2 in all circumstances, excluding those involving business incomes, beginning with the fiscal year 2017-18. In addition, NRIs having business income are required to submit an ITR 4 return. This implies that ITR 1 is no longer accessible to non-residents.

Step 7- Determination of Non-Taxable Income

Statement of non-taxable income such as  interest on NRE/FCNR deposits, interest on tax-free bonds, allowed gifts received, etc.

Step 8- Detailed information on Assets and Liabilities is included in the ITRs.

Under the ITR Property and Liability Plan, NRIs having a total income of more than Rs 50 lakhs are required to declare personal property and real estate information and associated liabilities in India. 

Step 9- Validation of ITR for NRI

Within 120 days after submitting the ITR, it must be verified. If results are not validated, they are deemed invalid. Confirmation may be done electronically or by manually mailing an approved ITR to Income Tax, CPC, Bengaluru.

These were some critical information that NRI investment consultant Pune can handle for NRIs.

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