Income Tax Returns for NRI is a confusing area of discussion. Here are the conditions when ITR Filing for NRI is mandatory & when not India. NRIs should note these and plan taxation accordingly.
The deadline to file ITR for individuals (who are not liable to audit under Section 44AB of the Income-tax Act, 1961) is, typically, 31 July, following the end of any financial year (FY).
There are no special extensions provided to NRIs to file ITR in India. For example, for FY19, the due date to file ITR was 31 July 2019.
This is updated till April 2020.
ITR Filing for NRI – It’s is mandatory if
ITR Filing for NRI is not mandatory but can be filled if required if an NRI has:
- total taxable income during the FY of more than INR 2.5 lakh.
- deposited an amount or aggregate of the amounts exceeding 1 crore in one or more current accounts maintained with a bank or co-operative bank during the FY.
- incurred an expenditure of an amount or aggregate of amounts exceeding INR 2 lakh for self or for any other person for travel to a foreign country during the FY
- Has incurred expenditure of an amount or aggregate of amounts exceeding INR 1 lakh on the consumption of electricity during the financial year.
- You have earned short-term or long-term capital gains from the sale of any investments or assets, even if the gains are less than the basic exemption limit.
There are Double Taxation Avoidance Agreements (DTAA) in place by which the same income won’t be taxed doubly. For claiming such DTAA benefits you need to file Income Tax Return.
From FY 2020-21, if an NRI has income more than INR 15 Lakhs from Indian sources, comes for visit to India, and spends 120 or more days, he will be treated as Resident & has to file ITR as a resident does.
ITR Filing for NRI – It’s is not mandatory but you can file
Even if you’re (NRI) income is less than INR 2.5.
You are planning to avail a Home Loan joint with a Resident in the future, it will help in documentation.
You have a TDS during the Financial Year. Now if you want a refund, you need to file ITR. The TDS should be visible or included in Form 26AS (Traces).
If you have made long-term capital losses from sale of any investments or assets, & you want to set them off in future.
Extra Byte: NRIs do not need to quote Aadhaar in ITR or link PAN with Aadhaar
The CBDT through notification 37/2017, has exempted NRIs from quoting Aadhaar in PAN applications and Income Tax Returns while ITR Filing for NRI. So, if you are NRI as per IT Act, then you shall not be required to quote Aadhaar. You are also not required to link PAN and Aadhaar also.
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