I am a Seafarer & I am usually required to file ITR-2 since I normally qualify, as per the IT norms, as an NRI. During FY 2020-21, I was working on foreign ship for the first 3 months (April to June). In June 2020 we came back to India due to the pandemic. Since then I am home. Now this stay in FY 2020-21 amounts to more than 181 days in India. Hence, according to the IT norms, I am now a Resident tax payer & my global income of the first 3 months is now taxable in India. (Kindly correct me if I am wrong with the above info.)
My total Global Income for those 3 months does not fall in the Taxable slab though.
My queries pertaining to AY 2021-22 are as follows.
1. Should I file ITR-1 or ITR-2 this time since I would be treated as a normal Resident tax payer?
2. I sent my first 3 months of income to my NRE account. Should I now consider that in my Taxable income calculations?
3. If yes, then in which Section/Schedule should I disclose it as "Global Income." (Kindly be very specific.) (For example, if I am supposed to file ITR-1 this time, then should I disclose it in Section B : B1 Gross Salary? If ITR-2, then which schedule)
4. Is Standard Deduction of Rs. 50,000 under Section 16 applicable to me?
Any other useful pointers would be highly appreciated.
1 File ITR 1 being resident. 2 yes, show it under salary income. 3 show it under gross salary. Disclose NRE interest under income from other sources- interest. 4 Yes, standard deduction 50000 applicable to you.
CAclubindia
