Income Tax Filing F.Y 2014-15 & 2015-16
This query is : Resolved
08 June 2016
I have been working abroad since 15th April, 2014 till date. I filed my IT e-file every year before I went out India. I visited India on leave 13th April 2015 and stayed till 25th May, 2015 in India. Since 25th May, 2015 Im in abroad. I received my salary in Indian bank account. So as far as I know, I am liable to file IT return in India. Please guide me whether I have IT requires me to file annual return or not? whether I can claim any Tax, PF amount paid in abroad as deduction or not? and also let me know what is the current ruling to determine residence status.
Thanks
08 June 2016
You are a non resident for FY 2014-15 and 2015-16. You are not liable to file IT return in India for the salary earned outside India, even if it is credited in Indian bank ac for the two years. You are non resident if you stay more than 182 days outside India when you go abroad for employment.
08 June 2016
thanks for reply..Sir so can I file nil return just to comply with the formality?
31 July 2024
### Determining Your Residential Status:
To determine whether you are a resident or non-resident in India for income tax purposes, you need to consider the number of days you spent in India during the financial year. The rules for determining residential status are:
1. **Resident**: If you are in India for at least 182 days during the financial year, or 60 days during the financial year and 365 days in the preceding 4 years.
2. **Non-Resident**: If you do not meet the above criteria.
3. **Resident but Not Ordinarily Resident (RNOR)**: If you are a resident in India in at least 2 out of the 10 preceding financial years, or if you have been in India for 730 days or more during the 7 preceding financial years.
### Financial Year 2014-15 (FY 2014-15):
- **Period Abroad**: 15th April 2014 to 13th April 2015 (363 days)
- **Period in India**: 1st April 2014 to 14th April 2014 (14 days)
Total days in India in FY 2014-15: 14 days
Since you were in India for less than 182 days, you are a **Non-Resident** for FY 2014-15.
### Financial Year 2015-16 (FY 2015-16):
- **Period in India**: 13th April 2015 to 25th May 2015 (43 days)
- **Period Abroad**: 26th May 2015 to 31st March 2016 (311 days)
Total days in India in FY 2015-16: 43 days
Since you were in India for less than 182 days, you are a **Non-Resident** for FY 2015-16.
### Filing Your Income Tax Return:
As a Non-Resident, your tax liability in India is limited to income earned or accrued in India. Your salary received in your Indian bank account from employment abroad may not be taxable in India if it is considered to be earned outside India. However, any interest earned on the salary deposited in the Indian bank account would be taxable in India.
### Filing Nil Return:
Even if you do not have taxable income in India, filing a nil return is a good practice to comply with the formality and maintain a record of your income tax status.
### Tax and PF Paid Abroad:
Taxes and PF contributions paid abroad cannot be claimed as a deduction in India. However, if you are a resident of a country that has a Double Taxation Avoidance Agreement (DTAA) with India, you can claim relief from double taxation.
### Steps to File the Return:
1. **Determine the total taxable income in India**: This would include any interest earned from your Indian bank accounts.
2. **Select the appropriate ITR form**:
- **ITR-1**: If you have income from salary, one house property, other sources (interest), and total income does not exceed ₹50 lakh.
- **ITR-2**: If you have income from salary, house property, capital gains, or other sources, and do not have income from business or profession.
3. **File the return online**: Use the e-filing portal of the Income Tax Department.
### Intimation U/s 143(1):
Intimation U/s 143(1) is issued by the Income Tax Department after processing your return. It will either confirm the computation of income and tax as per your return, or it may suggest changes. This intimation is issued in all cases where a return is filed.
### Summary:
1. **Determine your residential status**: For both FY 2014-15 and FY 2015-16, you are a non-resident.
2. **File ITR**: File your income tax return using ITR-1 or ITR-2, depending on your income sources.
3. **Declare income**: Declare any taxable income earned in India, including interest from bank accounts.
4. **File nil return**: If you have no taxable income in India, you can file a nil return.
5. **DTAA**: Check if the DTAA provisions are applicable for relief from double taxation.
6. **Intimation U/s 143(1)**: After filing, you will receive an intimation from the Income Tax Department regarding the processing of your return.
Filing your return ensures compliance with Indian tax laws and keeps your records up to date. If you have any specific concerns or require personalized advice, it may be beneficial to consult with a tax professional.
To determine whether you are a resident or non-resident in India for income tax purposes, you need to consider the number of days you spent in India during the financial year. The rules for determining residential status are:
1. **Resident**: If you are in India for at least 182 days during the financial year, or 60 days during the financial year and 365 days in the preceding 4 years.
2. **Non-Resident**: If you do not meet the above criteria.
3. **Resident but Not Ordinarily Resident (RNOR)**: If you are a resident in India in at least 2 out of the 10 preceding financial years, or if you have been in India for 730 days or more during the 7 preceding financial years.
### Financial Year 2014-15 (FY 2014-15):
- **Period Abroad**: 15th April 2014 to 13th April 2015 (363 days)
- **Period in India**: 1st April 2014 to 14th April 2014 (14 days)
Total days in India in FY 2014-15: 14 days
Since you were in India for less than 182 days, you are a **Non-Resident** for FY 2014-15.
### Financial Year 2015-16 (FY 2015-16):
- **Period in India**: 13th April 2015 to 25th May 2015 (43 days)
- **Period Abroad**: 26th May 2015 to 31st March 2016 (311 days)
Total days in India in FY 2015-16: 43 days
Since you were in India for less than 182 days, you are a **Non-Resident** for FY 2015-16.
### Filing Your Income Tax Return:
As a Non-Resident, your tax liability in India is limited to income earned or accrued in India. Your salary received in your Indian bank account from employment abroad may not be taxable in India if it is considered to be earned outside India. However, any interest earned on the salary deposited in the Indian bank account would be taxable in India.
### Filing Nil Return:
Even if you do not have taxable income in India, filing a nil return is a good practice to comply with the formality and maintain a record of your income tax status.
### Tax and PF Paid Abroad:
Taxes and PF contributions paid abroad cannot be claimed as a deduction in India. However, if you are a resident of a country that has a Double Taxation Avoidance Agreement (DTAA) with India, you can claim relief from double taxation.
### Steps to File the Return:
1. **Determine the total taxable income in India**: This would include any interest earned from your Indian bank accounts.
2. **Select the appropriate ITR form**:
- **ITR-1**: If you have income from salary, one house property, other sources (interest), and total income does not exceed ₹50 lakh.
- **ITR-2**: If you have income from salary, house property, capital gains, or other sources, and do not have income from business or profession.
3. **File the return online**: Use the e-filing portal of the Income Tax Department.
### Intimation U/s 143(1):
Intimation U/s 143(1) is issued by the Income Tax Department after processing your return. It will either confirm the computation of income and tax as per your return, or it may suggest changes. This intimation is issued in all cases where a return is filed.
### Summary:
1. **Determine your residential status**: For both FY 2014-15 and FY 2015-16, you are a non-resident.
2. **File ITR**: File your income tax return using ITR-1 or ITR-2, depending on your income sources.
3. **Declare income**: Declare any taxable income earned in India, including interest from bank accounts.
4. **File nil return**: If you have no taxable income in India, you can file a nil return.
5. **DTAA**: Check if the DTAA provisions are applicable for relief from double taxation.
6. **Intimation U/s 143(1)**: After filing, you will receive an intimation from the Income Tax Department regarding the processing of your return.
Filing your return ensures compliance with Indian tax laws and keeps your records up to date. If you have any specific concerns or require personalized advice, it may be beneficial to consult with a tax professional.
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