ONE OF MY CLIENT WHO IS NRI GOT A NOTICE FROM INCOME TAX DEPARTMENT REGARDING NON FILING OF INCOME TAX RETURN FOR THE LAST FOUR YEAR (AY 2010-11, 2011-12, 2012-13 & 2013-14). HIS INCOME WAS INCOME FROM OTHER SOURCES (INTT RECD. ON FIXED DEPOSITS & BANK DEDUCTED TDS ON THAT AMOUNT). NOW PLZ ADVICE ME WHAT SHOULD WE DO,,,,,
2NDLY PLZ LET ME KNOW THE INTT RECD. FROM NRI SAVING IS EXEMPTED FROM TAX OR NOT
07 August 2013
1. If the client was a non-resident in all these years, then reply to the letter by saying that the assessee was a non-resident. However, please ensure that the bank interest does not exceed the basic slab rate.
2. Interest on FDR with banks in India is taxable in the hands of the non-resident.
CAclubindia
