Which IT form to use for filing returns in India by NRI
This query is : Resolved
16 October 2007
I am NRI but I had salary + interest income from India. Deadline is over but I want to file returns in India.
1) Which form to use?
2) Where should I specify my over-seas income?
3) Under which section I should claim tax rebate on foriegn income?
4)Since I am considered NR in India, do I get standard deduction and rebate under section 80(C)?
1) Which form to use?
2) Where should I specify my over-seas income?
3) Under which section I should claim tax rebate on foriegn income?
4)Since I am considered NR in India, do I get standard deduction and rebate under section 80(C)?
19 October 2007
Form 2A - This form can be used if your income is less than Rs 200,000, and if your income does not comprise income under the head Profits and Gains from business or profession and if you don't have any brought forward losses.
Form 3 - This form can be used if your income is more than Rs 200,000.
Saral - This is a general form that can be used by anyone.
IT RETURN CAN BE SUBMITTED UPTO 31 ST MARCH 2008( FOR FINANCIAL YEAR 06-07).BUT THEN YOU CANNOT FILE REVISED RETURN.
You are required to file your return based on the ward or circle of Income Tax where you are covered. If you have filed IT returns in the earlier years then the IT ward or circle number would be mentioned on the stamp affixed on the acknowledgement of such a return. If such acknowledgement was not available then the IT return would need to be filed based either on the name of your employer in India. (SOURCE -REDIFF TAX ADVICE)
standard deduction is removed from indian income tax act except for pensioners.
80 c rebate may be claimed.
IT RETURN MAY BE SUBMITTED TILL 31 ST MARCH 08 FOR FINANCIAL YEAR 07-07. BUT THEN YOU CANNOT FILE REVISED RETURN.
R.V.RAO
Form 3 - This form can be used if your income is more than Rs 200,000.
Saral - This is a general form that can be used by anyone.
IT RETURN CAN BE SUBMITTED UPTO 31 ST MARCH 2008( FOR FINANCIAL YEAR 06-07).BUT THEN YOU CANNOT FILE REVISED RETURN.
You are required to file your return based on the ward or circle of Income Tax where you are covered. If you have filed IT returns in the earlier years then the IT ward or circle number would be mentioned on the stamp affixed on the acknowledgement of such a return. If such acknowledgement was not available then the IT return would need to be filed based either on the name of your employer in India. (SOURCE -REDIFF TAX ADVICE)
standard deduction is removed from indian income tax act except for pensioners.
80 c rebate may be claimed.
IT RETURN MAY BE SUBMITTED TILL 31 ST MARCH 08 FOR FINANCIAL YEAR 07-07. BUT THEN YOU CANNOT FILE REVISED RETURN.
R.V.RAO
23 October 2007
Thanks Mr Rao for replying. I have few doubts:
1) Limit of Rs. 200K is on income from India or total worldwide income?
2) Do I need to mention foreign income? If yes, under which section should I claim tax exmemption on foriegn income?
1) Limit of Rs. 200K is on income from India or total worldwide income?
2) Do I need to mention foreign income? If yes, under which section should I claim tax exmemption on foriegn income?
23 October 2007
FOR THE SAKE OF CLARIFICATION AND OF USE for MANY RELEVANT QUESTIONS ON NRI INCOME,
I REPRODUCE BELOW EXTRACTS FROM www.nritaxservices.com.
you may also pl. visit the site and also www.taxworry.com
Under the Indian Tax Laws overseas income is liable to Tax in India only if the assessee is an ordinarily resident.
A returning Indian who has been a Non Resident for consecutive 9 years or more, then for 2 successive years he shall be a resident but not ordinarily resident (RNOR) AND
All income earned in India shall be taxable in India.
Income which accrues or arise outside India will not be liable to tax in India unless it is derived from business controlled or profession set up in India.
Interest on Non Resident External Account (NRE) and Foreign Currency Non-Resident Account (FCNR) [Section 10(4)(ii)] is exempt in the hands of a person who is a Person Resident outside India as per section 2(w) of FEMA, 1999 and defination of 'Non-Resident' under Income Tax is not relevant for this sub section.
Income in respect of Interest, premium on redemption, other payment on notified securities, bonds, certificates and deposits are exempt u/s 10(15)(i) which covers:
Interest on India millennium Deposits(IMDs)/Resurgent India Bonds(RIBs) issued by State Bank Of India (The exemption from tax continues even if the NRI becomes a resident and is also available to the nominee or the survivor of the NRI or to a donee to whom the bonds have been gifted by the NRI.).
Interest on NRNR Rupee Deposits Scheme. The exemption is available to Non Resident only and therefore, interest on NRNR deposit is not exempt from income tax when a person becomes Resident but Not Ordinary Resident or Ordinary resident.
Interest paid by schedule banks to Non-resident or to a person who is not ordinarily resident on RBI approved foreign currency deposits (i.e. RFC deposits) is exempt (S. 10 (15) (iv)(fa)). The exemption, in respect of RFC account, continues till such time as the account holder continues to be "Resident but Not Ordinarily Resident"
NRIs have been offered a separate concessional tax regime in respect of certain types of income under Chapter XIIA comprising section 115C to 115I. As per section 115E, concessional tax of 20 % is available in respect of investment income and 10% in respect of long term capital gains from the specified assets which are acquired out of convertible foreign exchange. The benefit of concessional tax treatment under chapter XIIA continues even after NRI becomes a resident.
WEALTH TAX
Assets located outside India of Non-resident(NRI) /Resident but Not Ordinary Resident(RNOR) are exempt from Wealth Tax.
If NRI return to India with the intention of permanently residing in India, the assets brought by him and within one year after his return, will be exempt. This exemption is available to NRI for a period of seven years after his return to India. [sec. 5(1)(v)]
PIO CARDS
The Government has announced a scheme for issuance of Persons of Indian Origin (PIO) Cards for Persons of Indian Origin living abroad and having foreign passports. The PIO cards, which would be extended to Persons of Indian Origin settled in countries other than Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan besides introducing a visa free regime, also confer some special economic, educational, financial and cultural benefits to the holders of these Cards.
The following facilities shall be extended to the PIO Card holders:-
Visa free entry to India.
For PIO Card holders the requirement for registration with Foreigners Regional Registration Office has been done away with for continuous stay not exceeding 180 days.
All future benefits that would extended to NRIs would also be available to the PIO Card holders.
R.V.RAO
I REPRODUCE BELOW EXTRACTS FROM www.nritaxservices.com.
you may also pl. visit the site and also www.taxworry.com
Under the Indian Tax Laws overseas income is liable to Tax in India only if the assessee is an ordinarily resident.
A returning Indian who has been a Non Resident for consecutive 9 years or more, then for 2 successive years he shall be a resident but not ordinarily resident (RNOR) AND
All income earned in India shall be taxable in India.
Income which accrues or arise outside India will not be liable to tax in India unless it is derived from business controlled or profession set up in India.
Interest on Non Resident External Account (NRE) and Foreign Currency Non-Resident Account (FCNR) [Section 10(4)(ii)] is exempt in the hands of a person who is a Person Resident outside India as per section 2(w) of FEMA, 1999 and defination of 'Non-Resident' under Income Tax is not relevant for this sub section.
Income in respect of Interest, premium on redemption, other payment on notified securities, bonds, certificates and deposits are exempt u/s 10(15)(i) which covers:
Interest on India millennium Deposits(IMDs)/Resurgent India Bonds(RIBs) issued by State Bank Of India (The exemption from tax continues even if the NRI becomes a resident and is also available to the nominee or the survivor of the NRI or to a donee to whom the bonds have been gifted by the NRI.).
Interest on NRNR Rupee Deposits Scheme. The exemption is available to Non Resident only and therefore, interest on NRNR deposit is not exempt from income tax when a person becomes Resident but Not Ordinary Resident or Ordinary resident.
Interest paid by schedule banks to Non-resident or to a person who is not ordinarily resident on RBI approved foreign currency deposits (i.e. RFC deposits) is exempt (S. 10 (15) (iv)(fa)). The exemption, in respect of RFC account, continues till such time as the account holder continues to be "Resident but Not Ordinarily Resident"
NRIs have been offered a separate concessional tax regime in respect of certain types of income under Chapter XIIA comprising section 115C to 115I. As per section 115E, concessional tax of 20 % is available in respect of investment income and 10% in respect of long term capital gains from the specified assets which are acquired out of convertible foreign exchange. The benefit of concessional tax treatment under chapter XIIA continues even after NRI becomes a resident.
WEALTH TAX
Assets located outside India of Non-resident(NRI) /Resident but Not Ordinary Resident(RNOR) are exempt from Wealth Tax.
If NRI return to India with the intention of permanently residing in India, the assets brought by him and within one year after his return, will be exempt. This exemption is available to NRI for a period of seven years after his return to India. [sec. 5(1)(v)]
PIO CARDS
The Government has announced a scheme for issuance of Persons of Indian Origin (PIO) Cards for Persons of Indian Origin living abroad and having foreign passports. The PIO cards, which would be extended to Persons of Indian Origin settled in countries other than Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan besides introducing a visa free regime, also confer some special economic, educational, financial and cultural benefits to the holders of these Cards.
The following facilities shall be extended to the PIO Card holders:-
Visa free entry to India.
For PIO Card holders the requirement for registration with Foreigners Regional Registration Office has been done away with for continuous stay not exceeding 180 days.
All future benefits that would extended to NRIs would also be available to the PIO Card holders.
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Treatment of Renting of Villa
- House keeping and security services ITC can claim
- DTAA India & UAE
- Tax payment deduction from house loan EMI
- GST TDS applicability on black trap
- Error AIS modification submitted
- Do I need to pay taxes on uber one credits or Best Buy reward certificate?
- Evaporation loss in vat return
- Regarding remand back of order by ITAT to CIT(A)
- ITR BELATED FILED DEFECTIVE U/S 139(9) AY 2024-25 - FAILED TO SUBMIT THE ONLINE RESPONSE
- Taxability of Capital gain - cancellation of agreement
- WHAT TO SELECT IN 27Q TDS RETURN ? PAYMENT TO NON-RESIDENT
- Import consignment accounting
- GST refund claim on Purchase of Commercial Building
- GST on tour packages service
- Refund of ITC which was used in payment of tax
- I & E Code status
- Journal entry in the case of Non Listed Company
- Error while filing LUT
- ROC & INCOME TAX
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert14 February 2025 -
Survey, Search and Seizure under Income Tax Act 1961
CA Hari Agarwal
CAclubindia
