Income Tax Filing by Non-Resident Indians in India


Vakilsearch provides Non-Resident Indians (NRIs) with services and information on all aspects of income tax filing in India.

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Income Tax Filing by Non-Resident Indians

Non-resident Indians (NRIs) are liable to pay taxes in India if their income from sources in India exceeds the basic exemption limit. This income could be in the form of salary, rental, interest, etc. NRIs are also required to file their tax returns even if they do not have any taxable income in India.

Income tax filing by NRIs differs from that of resident Indians. The main difference is that NRIs must file their tax returns on a different form - Form 1040NR. In addition, NRIs are also required to furnish additional documents, such as bank statements, PAN cards etc., while filing tax returns.

The due date for filing income tax returns for NRIs is 31 July of the assessment year. However, suppose an NRI is residing outside India on the due date. In that case, you can file the return within 60 days of your return to India.

What Is the Income Tax Slab for NRIs in India?

Regarding income tax filing by non-resident Indians (NRIs) in India, the slab system differs from that of resident Indians. The Income Tax Act provides different tax rates for NRIs, depending on the nature and source of their income.

Income from salary is taxed at the same rate as that of resident Indians. However, NRIs are not eligible for certain deductions and exemptions that are available to resident Indians.

Income from other sources, such as interest on a savings account, fixed deposit or mutual fund, is taxed at a flat rate of 30%. This income is not subject to any deductions or exemptions.

NRIs are required to file their income tax return online in India if their total income exceeds ₹10 lakhs in a financial year. You can file your return either online or offline. The due date for filing income tax returns is 31 July of the assessment year.

How to File Income Tax Returns for NRIs in India?

If you are an NRI living in India, you may be required to file income tax returns. NRIs are taxed on their income from Indian sources. This includes income from investments, property rentals, and business activities in India. Income from other sources, such as foreign employment or pension, is not taxable in India.

NRIs can file their income tax returns online or through a paper return. The deadline for filing income tax returns is 31 July. For the online method, you will need to create an account on the e-filing portal of the Income Tax Department. Once you have registered and logged in, you can complete your return form and submit it electronically.

You will need to download and print the form from the Income Tax Department website for the paper return method. Please fill out the form and submit it to your nearest tax office, along with any supporting documents.

How Vakilsearch Can Help You

Vakilsearch is a legal services platform that can help you file your income tax returns as a non-resident Indian (NRI). We can guide you on how to file your taxes and help you understand the various deductions and exemptions you may be eligible for.

We can also assist you with other aspects of your tax filings, such as claiming refunds or filing an appeal if you are dissatisfied with the assessment made by the Income Tax Department.

Our team of experienced professionals can help you navigate the complex process of filing your income tax returns and ensure that you comply with all the relevant regulations. We can also advise on minimising your tax liability and maximising your tax refunds.

If you are an NRI looking for assistance filing your income tax returns in India, contact us today!

What Documents Are Required for Filing Income Tax Returns for NRIs in India?

If you are an NRI, you must file your income tax returns in India if your total income from all sources (including income from abroad) exceeds the basic exemption limit. The documents required for filing income tax returns for NRIs in India include the following:

  • Passport: A clear photocopy of your passport's first and last page, including any changes or amendments made to it.
  • PAN Card: A copy of your PAN card or Form 60/61 (as applicable).
  • Income Tax Return Form: A copy of the ITR form relevant to your status as an NRI (e.g. ITR-2 if you are a resident and ordinarily resident in India).
  • Financial Statements: A detailed statement of your financial transactions during the previous year, including bank statements, investment portfolios, etc.
  • Income Documents: Details of your income from all sources during the previous year, including salary slips, rent receipts, interest income statements, etc.

Can an NRI E-file Their Income Tax Return in India?

Yes, an NRI can e-file their income tax return in India. The process is similar to that of a resident Indian, with a few additional steps.

First, the NRI will need to obtain a PAN card. This can be done by filing Form 49A with the Income Tax Department. Once the PAN card has been obtained, the NRI can e-file their income tax return.

The NRI will need to provide personal details, such as name, date of birth, and address. They will also need to provide their Indian passport number and visa type. In addition, the NRI will need to disclose any foreign income tax or assets they have.

Once all the required information has been provided, the NRI can e-file their income tax return. The process is simple and straightforward and can be done from the comfort of one's home.

Specifics to Be Aware of for Valuables and Obligations in ITR

Suppose you are a non-resident Indian (NRI). In that case, you must file your income tax return (ITR) in India if your total income from all sources in India exceeds the basic exemption limit. This is regardless of whether or not tax is payable on your total income.

However, there are some specific things NRIs need to be aware of regarding valuables and obligations in their ITR.

Firstly, NRIs are required to declare any immovable property in India, such as land or a house. This includes property jointly owned by others, such as a spouse or family member.

Secondly, NRIs need to be aware of the taxation rules for gifts received from Indian residents. Gifts up to ₹ 50,000 per year are exempt from tax, but anything above this amount is taxable.

Thirdly, NRIs must also pay taxes on any interest earned from savings accounts or fixed deposits in India. The tax rate for interest income is 30%.

Finally, NRIs should also be aware of their obligation to file an annual return even if they do not have any taxable income in India. The due date for filing an ITR is 31 July every year.

Why Vakilsearch?

Vakilsearch provides an array of services for Non-resident Indians in India concerning income tax filing. The company has a team of experienced chartered accountants and tax lawyers who can assist with all aspects of income tax filing, from determining the correct tax bracket to ensuring compliance with all regulations.

Income tax can be a complex and daunting task. Still, with Vakilsearch by your side, you can be confident that your taxes are being handled efficiently and correctly. Vakilsearch will determine the best course of action for your circumstances.

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