Income Tax for NRI

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Pratosh (Querist)
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20 July 2009 I am trying to fill up ITR2 online and have following questions wrt to it.

1. Which section of IT is applicable as I have only interest/ dividend / STCG and LTCG thru investment in securities.
11 u/s 139(1), OR 12 u/s 139(4) OR 13 u/s 142(1) OR 14 u/s 148 OR 15 U/s 153(A)?

2. My investments are thru ICICI Direct PINS account and have TDS deduted at source with STT for part of the year on STCG. My STCG is very less compared to LOSS and I am filing this return for setting off my losses in future.

3.I am newbee so pls let me know if I have to file return for TDS deducted for inyear 2007-2008 that is FY 2007-2008 . What is AY accounting year ? I received TDS certificates for 07-08 and 08-09 only this year so I am confused if i file both year before 31st?

4. If I file ITR2 do i still need to send physical copy to my ward?

5. PAN address and ITR address .. can they be different? They are in my case as when i took PAN i was in India and now in here in UAE.
Please support by answering my query.

Thanking you in anticipation ...

CA.Pujah

CA.Pujah (Expert)
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20 July 2009 Ans.
1. if u r filing return before 31-7-09,
it will be 11 (u/s 139(1), if later,
it will be 12.

2. no problem
3. If you had filed a return for FY 2007-
08 within due date, u can revise it
upto 31-3-2010.
4. Now no attachments are required to be submitted with ITR forms.

5. Of course, you can fill the ITR form with new address, but also inform ITO for change in address.

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Pratosh

Pratosh (Querist)
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20 July 2009 Hello CA Pujah ,

Thanks for your reply.
I have not filed return for 2007-2008 so can i file it now and if yes for that I put section 12 and for 2008-2009 its section 11 right?

Thanks again !!

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CA.Pujah

CA.Pujah (Expert)
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20 July 2009 yes.
You'r most welcome

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Pratosh

Pratosh (Querist)
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20 July 2009 The Last one ..

Is gain due to FCNR deposit is long term gain? as this was 1 yr deposit.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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31 July 2024 The gain from an FCNR (Foreign Currency Non-Resident) deposit, whether it is considered a long-term or short-term capital gain, depends on the nature of the gain. Let's break this down:

### Nature of Income from FCNR Deposits:

1. **Interest Income**:
- **Interest earned** on FCNR deposits is typically classified as **ordinary income** and not capital gains. This interest is exempt from tax in India for NRIs (Non-Resident Indians) as per Section 10(4)(ii) of the Income Tax Act, 1961, provided certain conditions are met.

2. **Foreign Exchange Gain**:
- If there is any **foreign exchange gain** due to the fluctuation in the currency exchange rate when the deposit matures, this could be considered as capital gain. The classification as long-term or short-term capital gain depends on the period for which the asset (in this case, the FCNR deposit) was held.

### Determining Long-Term vs. Short-Term Capital Gain:

- For financial assets like deposits, the **holding period** for determining long-term or short-term is **36 months (3 years)**.
- If the asset is held for more than 36 months, it qualifies as a **long-term capital asset**.
- If held for 36 months or less, it is considered a **short-term capital asset**.

### Specific Case of a 1-Year FCNR Deposit:

- Since the FCNR deposit in question was held for only **1 year**, any foreign exchange gain realized upon maturity of this deposit would be classified as a **short-term capital gain**.

### Tax Implications:

1. **Interest Income**:
- As mentioned earlier, interest from FCNR deposits is exempt from tax for NRIs under Section 10(4)(ii).

2. **Foreign Exchange Gain**:
- If there is a foreign exchange gain, it would be a short-term capital gain due to the 1-year holding period.
- **Short-term capital gains** are taxed at the applicable income tax slab rates for the individual.

### Summary:

- **Interest Income**: Exempt from tax for NRIs as per Section 10(4)(ii).
- **Foreign Exchange Gain**: Classified as a short-term capital gain if the FCNR deposit was held for 1 year.

If you have any specific scenarios or more details about the nature of the gains or the terms of the FCNR deposit, feel free to share for more precise guidance.