Income Tax return for NRI

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Vineet Jain (Querist)
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17 October 2007 Hi,

I have returned from UK after a stay of around 16 months during which I was paid UK salary but no Indian component.

I have paid tax on the same in UK and have filed tax return for the financial year 2006-2007 in UK.

Can you please let me know, whether I need to file income tax return in India also for the financial year 2006-2007?

And if yes, Is there any specific requirement for the same? and By when I can file the return?

Thanks in advance.

Best Regards.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 October 2007 Dear Mr. Jain,

The liability to income tax in India for a person in respect of any previous year is determined on the basis of residential status of that individual in that year as well as where the income accrued, besides the nature of income.

The residential status can fall under any of these categories:

1.Resident and Ordinarily resident
2.Resident but not ordinarily resident and
3.Non-resident.

The details given by you are not sufficient, to dtermine your residential status for the year you are refering to. Please indicate your period of stay in India during that year in question.

S.Srinivasaraghavan

Vineet Jain

Vineet Jain (Querist)
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18 October 2007 Thanks Srinivasaraghavan.

I went to UK in Jan-2005 and returned in May-2007.
The stay was continuous and I was paid UK salary.

I filed tax return in UK for the financial year 2005-2006 and also in India for the same financial year (for income upto Jan-2005).

As there was no Indian salary/income during the financial year 2006-2007, I filed tax return in UK but not in India.

Now, as per my understanding as there is a break in my ITR for the FY 2006-07, I may need to file the same.
Here I would like to mention that I have taken a Home loan in Oct-2005 and has not claimed the benefit of the same yet.

Can you please let me know, whether my understanding is correct? Also, if you can please let me know the process to file the return now and the last date?

Thanks,
Vineet

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R.V.RAO

R.V.RAO (Expert)
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19 October 2007 YOU HAVE NO INCOME FOR 06-07 IN INDIA.
DURING THE WHOLE OF PREVIOUS YEAR 06-07,YOU WERE NOT EVEN IN INDIA.
YOU HAVE ALREADY FILED IT RETURN FOR 06-07 IN UK.
BREAK IN ITR IS NO CRITERION FOR FILING IT RETURNS IN INDIA.
EVEN IF YOU WISH TO CLAIM DEDUCTION FOR HOME LOAN UNDER 80 C OR INTEREST ON HOME LOAN UNDER SEC. 24, ON WHAT OR AGAINST WHAT INCOME YOU WISH TO CLAIM SET OFF OR DEDUCTION?
THERE IS NONE.
i dont find any USE OF YOUR FILING NIL RETURN FOR 06-07 UNLESS YOU HAVE ANY INCOME IN INDIA TO OFFER/DECLARE.
YOU HAVE TIME OF COURSE TILL 31-03-08 TO FILE ANY SUCH RETURN.
THE COURSE NOW OPEN TO YOU IS FOR THE FINANCIAL YEAR 07-08(INCOME FROM MAY 07 -MAR 08) ,IF YOU HAVE ANY INCOME TO OFFER ,YOU CAN CLAIM DEDUCTION UNDER BOTH THE ABOVE SECTIONS.
the due date for filing your return of income is 31-7-08 if you have no tax audit requirement .otherwise 31-10-08
R.V.RAO