{"id":47,"date":"2021-10-19T11:21:59","date_gmt":"2021-10-19T11:21:59","guid":{"rendered":"https:\/\/sgujar.com\/blog\/?p=47"},"modified":"2025-02-13T17:02:17","modified_gmt":"2025-02-13T11:32:17","slug":"how-to-file-income-tax-by-nris","status":"publish","type":"post","link":"https:\/\/sgujar.com\/blog\/how-to-file-income-tax-by-nris\/","title":{"rendered":"How to File Income Tax by NRIs?"},"content":{"rendered":"<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">First of all, let us start with knowing what or who an NRI is? Well, NRI is an acronym for Non-Resident Indian. These are the people who are citizens of India but are doing their jobs and mending their careers overseas. However, the definition of NRI is different under the IT act. The\u00a0<a title=\"\" href=\"https:\/\/sgujar.com\/nri-tax-investment-services.html\" target=\"_blank\" rel=\"noopener\"><b><span style=\"color: #003399;\">NRI taxation<\/span><\/b><\/a>\u00a0system is a lot different from the normal taxation system for the people residing and working in India. This requires the special attention of concerned persons and experienced professionals. They help differentiate between different categories such as residents, non-residents, etc.\u00a0<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"color: #000000; font-family: georgia; font-size: medium;\"><b>Definition of NRI under the FEMA act:<\/b><\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">FEMA, an acronym for Foreign Exchange Management Act, has its rule stating that if a person stays in the country for a period less than 182 during the ongoing financial year, then he or she is to be rendered NRI. Typically financial year starts 1st of April and lasts till 31st March of the next year.\u00a0<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia; font-size: medium;\"><b>Additionally, the following persons are also included in the list of NRIs:<\/b><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>People employed in organizations and the ones carrying businesses overseas.<\/li>\n<li dir=\"ltr\" aria-level=\"1\">\n<p dir=\"ltr\" role=\"presentation\"><span style=\"font-family: georgia;\">People staying outside India due to some constraints for an unfixed period.<\/span><\/p>\n<\/li>\n<li dir=\"ltr\" aria-level=\"1\">\n<p dir=\"ltr\" role=\"presentation\"><span style=\"font-family: georgia;\">Government servants deputed by the government to be stationed overseas.<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia; font-size: medium;\"><b>Definition of NRI under the IT Act:<\/b><\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">Currently, a person is considered to be NRI under the IT Act if he or she fulfills the following conditions.<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li dir=\"ltr\" aria-level=\"1\">\n<p dir=\"ltr\" role=\"presentation\"><span style=\"font-family: georgia;\">If the concerned person is absent for more than 182 days in the current financial year.<\/span><\/p>\n<\/li>\n<li dir=\"ltr\" aria-level=\"1\">\n<p dir=\"ltr\" role=\"presentation\"><span style=\"font-family: georgia;\">If the concerned person has not been present for a period of 365 days or more during four preceding financial years.<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">NRI tax consultants come in handy in cases like these. They provide services in the sector of advisory, consultation, analyzing residential status, consultation on paying and filing IT returns, investment advice, checking eligibility for femmes residency, etc.<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia; font-size: medium;\"><b>The Deemed residency provision:<\/b><\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\"><span style=\"color: #0e101a;\">According to the finance bill of 2020, a person is to be considered as a resident of India if that person is not being taxed in any other country. This bill has been introduced as a countermeasure to stop the <\/span><b><a title=\"\" href=\"https:\/\/sgujar.com\/indirect-tax-advisory-services.html\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #006699;\">tax<\/span><\/a><\/b><span style=\"color: #0e101a;\"> evaders. These people go on and settle in countries that have little to no tax-paying requirements. This saves their money from tax-paying.<\/span><\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">Umpteen numbers of misinterpretations of this bill have surfaced, such as a person working in a country like Dubai or Qatar if he\/she does not pay tax in that country, then they need to pay tax in India. This is completely baseless and wrong.<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">In accordance with the new bill, a person shall pay tax in India after settling outside if he\/she makes money from India itself.<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia; font-size: medium;\"><b>Conclusion:<\/b><\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"font-family: georgia;\">Taxation is a subject that has haunted people for a long because of its complex structure and ever-changing rules. Add to it being an NRI that is not saying in India, it becomes almost impossible to manage taxes, so expert help of CAs, CFAs is highly recommended in matters like these.<\/span><\/p>\n<p dir=\"ltr\" style=\"text-align: justify;\"><span style=\"color: #006699; font-family: georgia; font-size: x-large;\"><b><a title=\"\" href=\"https:\/\/sgujar.com\/contact-us.php\" target=\"_blank\" rel=\"noopener\">Get in touch for more information.<\/a><\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>First of all, let us start with knowing what or who an NRI is? Well, NRI is an acronym for Non-Resident Indian. These are the people who are citizens of India but are doing their jobs and mending their careers overseas. However, the definition of NRI is different under the IT act. The\u00a0NRI taxation\u00a0system is [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":48,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-47","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audit-assurance-service"],"_links":{"self":[{"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/posts\/47","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/comments?post=47"}],"version-history":[{"count":1,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions"}],"predecessor-version":[{"id":49,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/posts\/47\/revisions\/49"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/media\/48"}],"wp:attachment":[{"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/media?parent=47"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/categories?post=47"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgujar.com\/blog\/wp-json\/wp\/v2\/tags?post=47"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}