11 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 from his salary sfter deduction of taxes as per their norms.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 . 1. Can he file his ITR in India as Indian Resident to claim refund of the TDS deducted by the bank on his FDs ? 2. If yes,what residency status he should write in his ITR as Indian Resident or Non-Resident ? 3. 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. 4. 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 ? 5. Please clarify if any other precautions are needed while filing ITR ii India to claim for refund. 6. Which Form he should use for filing of his ITR in India and how he should disclose all the particulars discussed above ? What will be his residential status Resident or Non-resident in ITR while filing his return in India ? 7. In his ITR to be filed should he disclose all his operative accounts including NRE account as mentioned above. Please clarify the position by substantiating Income Tax Sections,if possible. Thanks in anticipation. Hardev Singh Batra
13 September 2015
I have given reply few points in my previous communications. If other expert have other opinion , please give. However I am again giving reply pointwise below:
1. Yes. Rather he must fill ITR itr-2a will be ok to fill.
2. NRI.
3.NOT applicable as he is NRI. In ITR this column is for Indian resident to certify that they have no foreign income. For NRI,Foreign income is exempted in this column.o.
4.yes declare all accounts Indian and nri account . But no need of foreign account of Canada to declare.
5.fill tds claim with all detsils in itr ,Account details with correct IFSC code and 10 digit Account no.But now u can only file off line.
6.ITR-2A.
7.NRE ACCOUNT NO NEED TO DECLARE.But if u r doing transactions to other accounts relatives etc. From nre. Then declare nre aldo.
CAclubindia
