NRI tax filing services

• A person is a resident of India according to Income Tax Act 1961 if:-
  • He/she is in India for 182 days or more in the previous year
  • He/she is in India for 60 days or more in the previous year and 365 days or more in the years immediately preceding the previous year
• If an Indian Citizen or person of Indian origin comes on a visit to India or if and Indian citizen is going abroad for employment during the previous year, then in the second condition 60 days is replaced by 182 days.
• Person of Indian origin is a person who or whose parents or grandparents were born in any region of Undivided India.
• A company is a resident of India if the company is Indian or during the previous year, the control or management was situated in India.

An NRI is a person who does not fulfill the above conditions of being a resident of India.

• Dividends from shares of domestic companies
• Interest on NRE and FCNR (Foreign Currency Non-Repatriable) accounts
• Long term capital gains from listed equity shares as well as equity oriented mutual funds
• Interest on government issued savings certificates and notified bonds

• An Indian Resident can be either Resident and Ordinary Resident (ROR) or Resident but Not Ordinarily Resident which depends on the fulfillment of the following two conditions. If both the conditions are fulfilled, then the person is ROR otherwise he/she is RNOR
  • Residing in India in any of the two out of ten previous fiscal years preceding the previous year and
  • Physical presence in India for 730 days or more in the seven previous fiscal years preceding the previous year.

The answer is yes. Once your residence has been determined, the next step is to determine whether your income is taxable in India under the residence established under the Income Tax Act 1961.

1. For resident individuals: Your worldwide income is taxed in India, which means that income earned in India or abroad is taxed in Indi
2. For Non Resident Indians: Only income earned or accrued in India or deemed to be earned or accrued in India or deemed to be earned or accrued in India is taxable in India. Therefore, your income from any country other than India is not taxed in India.

Normally, you have to file a tax return if:

1. Your gross income earned or accrued in India exceeds the basic exemption limit of Rs. 2,50,000.
2. Excess TDS resulting in a refund due to TDS deducted on rent or interest or any such income. Hence for claiming a refund ITR is required to file.
3. For carrying forward losses or setting of gains against loss.

No. Income tax return is being filed online though income tax portal i.e efiling portal.NRI do not need to be physically present to file and verify NRI tax return. NRI can file NRI tax return online from anywhere in the world. NRI can now check NRI ITR electronically from anywhere. NRI can send the signed copy of ITR-V to CPC Income Tax Department Bangalore or e-verify within 30 days from the date of filing of ITR.

Yes. The basic exemption ceiling also applies to non-residents. However, this exemption is not available if your income consists only of short-term capital gains [Section 111A] or long-term capital gains because it is taxed at a special rate. Similarly, if your income is solely from other income taxed at a special rate, such as lottery winnings, the base exemption cap will not be available. Hence benefit of basic exemption limit is not available if NRI has capital gain as income source.

Irrespective of residency status, rental income from Indian properties is considered income generated in India and is taxed in India. Therefore, the rental income is taxable for NRI. Basic exemption limit of Rs. 250,000 applies to this.

Yes, NRI must pay a tax advance if the tax payable by NRI for a financial year is Rs 10,000 or more. The prepaid tax must be paid quarterly according to the due date indicated. However, interest under Section 234B and Section 234C will apply if NRI does not pay the advance tax by before the payment due date.

If your property is 3 years old there will be a long-term capital gain on the sale. These profits are taxed at 20%. However, you can avoid paying capital gains tax by taking advantage of the investment options available under various regulations to reduce your tax liability. The tax implications of NRI also apply to inheritance. If the property is inherited, remember to consider the date of purchase from the original owner to calculate whether it is a long-term or short-term capital gain. In this case, the cost of the property is that of the previous owner.

Income tax rates for NRIs are the same as for resident individuals in India. However, the NRIs will not get senior and super senior basic exemption tax limits as resident Indians get.

 A double taxation avoidance agreement, or DTAA, is an agreement between two countries to avoid taxing the same income in both countries. To apply for DTAA benefits in India, the assessee must present a certificate of tax residency. Taxpayers can obtain a certificate of tax residency from the government of the country where the NRI is located.

NRI can get excess income tax refund by filing income tax return in India.

Gains/losses on shares sold after 12 months from the date of purchase are long term in nature taxable at 10% and short term gain is taxable at 15%.

Income earned and received outside India is not taxed in India. However, any income earned, accrued or received in India is taxed at a flat rate.

Interest earned on NRE Fixed Deposits is tax exempt in India. However, interest on the FD’s NRO account received from the NRI is taxable. Interest earned on any type of NGO bank account is taxable.

Steps to file ITR for NRIs
Step 1 –Determine residential status of NRI
Step 2- Reconciling income with 26as,AIS and TIS
Step 3- Computing taxable income
Step 4- Computing tax payable
Step 5- Considering benefit of DTAA
Step 6- Filing correct ITR form for NRI
Step 7- Input of NON liable income details
Step 8- validation of bank account on income tax portal
Step 9- Inclusion of necessary details in ITR including assets and liabilities
Step 10- Uploading ITR and e verifying

Following documents are required for filing NRI income tax return:

• Pan card(Permanent account number) this is compulsory for filing ITR in India
• bank account details and its validation in income tax portal
• Passport of NRI to validate nationality and residential status of NRI
• Income proof like salary slip, interest certificate, capital gain statement,etc. to reconcile income with AIS,TIS and form 26as.

NRI can apply for lower TDS or tax exemption certificate on sale of property by making application for lower tds or taxa exemption by making application in form 13 to local tax jurisdictional officer.

37/2017 Exempt non-residents from linking PAN to Aadhaar under the Income Tax Act if they do not have Aadhaar. This means that if non-residents have Aadhaar and PAN, they must link PAN to Aadhaar.

Non-Resident Indians (“NRIs”) can apply for a PAN through Form No. 49A is submitted to the PAN Application Center of UTIITSL or Protean (formerly known as NSDL eGov) with required documents and prescribed fees .And than PAN is delivered physically also.