Non-filing of itr for nri

Amit Bhatia-ji, you have mentioned that you have income less than taxable limit in India.

Firstly, May I know the source of Income so that I can suggest you the exact solution.

Secondly, do you send any money to India from outside India?

Source of income is interest earned from savings account balances.

Yes, money is sent from USA to India.

Amit Bhatia-ji, (I assume that the question you have asked is for yourself)

I shall tell you few facts, so the decision will be upto you.

Firstly, Ideally, you should have NRO/NRE account in India. If you have Normal Savings account, then you need to change it to NRO account. Any interest earned in NRO account has TDS of 30%. Means if you got interest of Rs. 100/- in any Financial year, then bank will straight away deduct Rs. 30/-. If you want Rs.30/- back, then you need to file ITR. Ideally, you should inform your bank which has your existing normal savings account that you are now NRI and to change the account into NRO account. You can just send email to the bank asking for the necessary procedure. Bank, in most of the cases, never responds quickly. However, you have the email evidence that you have approached the bank.

Secondly, you send money from USA to India. So it is good practice to mention that amount in ITR in the Exempt Income column. For eg. Exempt Income : Remittance to India : Rs. 10,00,000/-. This amount is not taxable and is just for information to the IT department. I assume that, you send that money in your NRE account in India. So after 15-20 years, if your money get accumulated or you purchase any property from that money, then you have full-proof evidence that it is your own money and it has been already informed to the IT department about that money for all the years. If you want any loan from Indian bank, then it is very easy if you shown them the ITRs, because in the ITR it will be mentioned that you have big amount with you that you remit to India. If you are sending the money to any of your close relatives, then those relatives need to mention this amount in their ITR as Gift Money (only if they wish to file the ITR).

So the short answer to your question can be 2) Not liable to file return OR you may consider to file the ITR.

Let me know if you have further concerns, and I can explain more things if required.