Nri return- crew member

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 Income exceeds 15L

1st employer deducted tax of 40K while his 2nd employer did not deduct any tax. Total stay outside is 260 days. No other income. 1st employer paid in Rs. while 2nd employer paid in US$.
Please tell me if I am eligible for refund and which ITR to be filled.

ABHIMANYU JHAMBA

ABHIMANYU JHAMBA (Expert)
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28 July 2016 Yes. You must file a Return and claim refund, if any.

Abhimanyu Jhamba
9218999999

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 Thanks for the reply.
I thought the same thing but as i was filling my return through a private site, it calculated a huge amount of tax.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2016 How should i file the return and which form to be used?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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03 August 2024 For an NRI working as a crew member with income exceeding ₹15 lakh, here’s a structured approach to filing the return and understanding your tax obligations:

### **1. Eligibility for Refund**

Since you have:
- Income from two employers.
- Different currencies and tax withholdings.
- Total stay outside India: 260 days.

**Refund Eligibility:**
- If your total tax liability after considering all deductions and exemptions is less than the total TDS deducted, you will be eligible for a refund.

### **2. Choosing the Correct ITR Form**

For NRIs, the appropriate ITR form depends on the type of income. In your case:
- **ITR-2**: This is suitable for NRIs who have income other than business or profession income. It covers income from salary, capital gains, and other sources.

**ITR-2** is applicable if you:
- Have income from salary (both in India and abroad).
- Have foreign income.
- Are claiming deductions or exemptions.

### **3. Filing the Return**

**Steps to Follow:**

1. **Convert Foreign Income:**
- Convert the income received in USD to INR using the appropriate exchange rate (typically the rate as of the date of receipt or the average rate for the year, as specified by the Income Tax Department).

2. **Report All Income:**
- Report the total income from both employers in the ITR-2.
- Include both the Indian and foreign income in INR terms.

3. **Claim Deductions:**
- Claim any available deductions under sections such as 80C, 80D, etc., if applicable.

4. **Tax Paid & TDS Details:**
- Report the TDS deducted by both employers.
- Enter the TDS amount deducted by the first employer (₹40,000) and ensure the second employer's TDS details are properly accounted for.

5. **Calculate Tax Liability:**
- Calculate the total tax liability based on the applicable slab rates and exemptions.
- If the TDS deducted exceeds your tax liability, you will be eligible for a refund.

6. **Use Reliable Tax Filing Software:**
- If the private site shows a huge tax amount, it might be due to incorrect data entry or software errors. Ensure you use accurate figures and try filing through the official [e-filing portal of the Income Tax Department](https://incometaxindiaefiling.gov.in).

7. **File the Return:**
- Submit the completed ITR-2 form online.
- Verify the return using the Acknowledgment Number (or other available methods such as e-verification).

### **4. Common Issues and Tips**

- **Check Currency Conversion:**
Ensure you use the correct conversion rates for reporting foreign income and TDS.

- **Address Calculation Errors:**
If the private site shows incorrect tax, review the entries. If necessary, cross-check calculations manually or use the official portal.

- **Documentation:**
Keep all documents related to income, TDS certificates, and any communication from employers.

- **Consult a Tax Professional:**
If you face difficulties or discrepancies, consulting a tax professional may help resolve issues and ensure compliance.

### **Summary**

You should file ITR-2, converting all foreign income to INR and reporting it correctly. If your total tax liability is less than the TDS deducted, you are eligible for a refund. Ensure accurate reporting and use reliable filing methods to avoid discrepancies.