Returning Indian

140 views 2 replies

RAJKUMAR TG

397 Points Joined July 2018

a nri client has kept nre fd which has run for less than 1 year till last financial year end.
he has returned to India last year itself.
filed return as resident as he does not have any foreign involvement.e or assets except nre fds. he has to pay tax on nre fd interest like any other resident.
on analysis his fd is less than one year as on 31st March and hence no interest accrue to him on these fds since if he prematurely breaks no interest will b paid as on 31st March.
can he make revision of itr with less interest and claim refund.
he shall treat this fd on cash basis of accounting

Replies (2)

Nitesh bind

Student CA Final

12692 Points Joined October 2012

If there was No Such Interest and you have presumed that and paid the income tax there on and if the return is filed within Due date then Yes you can revise the return and claim the Refund.

Thanks.

RAJKUMAR TG

397 Points Joined July 2018

presumption is what we believe. there must not be tax concealment. accrual system is followed.
since deposits r booked under nre category no tds.
but as on 31.03 these deposits r less than 1 year tenor and as in date of filing also less than 1 year.
if he breaks after filing original return filed during July he will not get unterest like resident deposit holders.
it is not penalty but no unterest accrues for less than year if deposit booked under that category is broken.
he will add this interest along with next year interest and file return for next year.
can he do so.