nri return filing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 Mr A is an nri.

comes for only 2months to stay in india.(thus does not satisfy 182 days or 60+365 for 4 years conditions)

he has 1 crore in nro account.
interest is 9%.

Interest income = 9 lakhs
Tds on above at 30.9% = 2.78 lakhs
Net interst recd = 6.22 lakhs

Tax on above 9 lakhs is = 34000+60000+30000
= 124000 + 3%
= 127720

Final Tax Liability is

Tds 278000
tax 127720
_____________
refund 150280

Mr A Does not have pan card
He does not file returns.
He is losing 150280 refund.

My question is

1) What are the penalties involved if he does not file returns???

According to me Rs.10000 for not applying for pan and Rs.5000 U/s271f for not filing returns.nothing more.

2)Are there any other penalties and prosecutions involved??

There is no other source of income in india. and the assessee is not liable to tax above as tds is more than the tax.

3) Can nri make application to AO for claiming tds to be deducted at the rate of slab applicable to nri and not the maximum marginal rate??

suppose nri has 7 lac income thus tds to be deducted at 20% not 30%.

Can he make such application for lower deduction???

After making such application is it neccesary to file returns of income?

If not filed the penalties involved??

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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26 May 2011 Yes NRI can make application to ITO for deduction of TDS at lower rate but for that he has to obtain PAN .

After getting such certificate it is not necessary to file return of income.

Also there are other provisions of Income Tax Act wherein if the money has been brought in India in foreign currency then then the income is chargeable @ 20% and there is no need to file return of income.

Anuj
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