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ITR filing as an NRI

Ramesh (user) (23 Points)

01 January 2021

Hello Experts,

My wife and i both are living aborad (both attain NRI status), she is not employed and has some savings and investment done by her parents and wanted to check on followings:

Deposits in saving account: e.g., 2-3 Lakhs. she is process to start converting saving account into NRO, she might be receiving some interest on deposits in her NRO account, so filing the ITR (India) is mandatory, right?Does she need to declare somewhere about the amount as it was not actually earned by her?
investment: post office RD, LIC, these all also need to be declared right?

What are the best ways to handle this situation?

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5 Replies

sabyasachi mukherjee (27469 Points)
Replied 01 January 2021

If an assesse is an individual , he or she 5has to satisfy the conditions laid down in Sec 6(1).
However, an assesse is taxable in respect of his income provided he has earned it in India or deemed to accrue or arise in India.

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CA Raj Doshi (Practising CA) (8924 Points)
Replied 01 January 2021

1. NRI or not, any individual whose GROSS income exceeds Rs. 2,50,000 is required to file an income tax return in India.

2. Income from Post office RD needs to be declared. LIC premium paid can be claimed as deduction under 80C

www.rcdco.in
E : raj @ rcdco.in

sabyasachi mukherjee (27469 Points)
Replied 01 January 2021

An individual has to file his returns:
if his income exceeds the maximum amount i.e. the threshold limit.

ramesh if your income in respect of income from other sources as defined in Income tax act exceeds the threshold limit during the previous financial year.
It is taxable as per the existing tax slabs.

Ramesh (user) (23 Points)
Replied 10 January 2021

Thanks everyone for your responses. If i undrestood correctly, once Post office RD / LIC policy got matured, income earning from these investment needs to be declared while ITR filing, right?

also, for NRI, ITR2 form needs to be filled up, correct?

Kapadia Pravin (17259 Points)
Replied 11 January 2021

@ Ramesh
Filing return compulsory when income is above 250000/-. Otherwise you can skip. if any TDS is there, then you must file return for refund purpose. All income from RD, bank account interest are part of income. LIC will be exempt.