05 September 2015
Sir,my son acquired NRI status after residing continuously for more than six months in Canada after going there on work permit.He opened his NRE account in India and is remitting surplus funds into his NRE account.But after getting NRI status,immediately he could not get his existing Indian accounts (FD and SB accounts) converted into NRO accounts which are running as of Indian resident only.He is not having any income in India other than interest on FD etc.which is much below the annual taxable income for AY 2015-16 but as the interest amount exceeded Rs.10000.00,the bank deducted TDS on interest . How he should file his return in India to claim for refund of the TDS deducted by the banks as Resident or as Non Resident Also on e-filing the return,in the Computation of Income sheet generated,one declaration is there that It is further certified that I have no Foreign income and Foreign assets while actually as my son is working there,he is getting income also. Also whether he should mention all his operative/running accounts including NRE accounts also along with Resident Indian accounts in the ITR to be filed ? As he could not convert his Resident accounts into NRO, can he do so now after filing of return, or let it continue till the maturity of the FD? He is also having in India his PPF account, how it will be treated now. Can he deposit up to Rs.150000.00 to this account from his existing Resident SB account till the maturity of the PPF account ? Please guide me if any other precaution is needed while filing ITR in India to claim for refund. Thanks in anticipation. From: Hardev Singh Batra
05 September 2015
1. UR son is NRI following options are available for him as NRI. A) He can file return in ITR-1 , 2 , 2A as NRI if remain outside India more than 181 days in any financial year(1 April - 31March). Otherwise as Resident , he has to file . b) He should claim all TDS as NRI for refund after filing return showing all FD , account interest income in OS column of ITR. c) As per rule , he should convert all Indian saving a/c as NRO as early as possible. d) He can continue his old PPF account BUT NO contribution futher fOR 80cc benifit. Other experts can give views on this. e) NRE account income is not liable for Indian Tax for NRI so no need to show any Foreign money credited to his NRE account in FA column of ITR for NRI.But show all NRO/Non-NRO accounts and covert to NRO all such accounts as early as possible. regards
CAclubindia
