Salary of an NRI

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One of my friend is working in UAE. He is getting salary there and he is also holding long term & short term investments in shares in India. now he wants to file his return for the AY 2015-16 as he got notice from IT department. Since his salary is exempt from tax can he show his salary received in UAE under exempt Income head in ITR 2 or should be shown under any other head. Knidly clarify me and details need to be shown Income tax return for showing foreign income ( i.e. salary).

Replies (6)

Can anyone clarify me reagrding the above query plz......

 

Being NRI, foreign income should be disclosed under Schedule EI,  but take care to fill Schedule FA.

Thank u Sir for ur reply, But my collegues are telling that no need to show the salary as its exempt and if we have to fill Scedule FA it is asking so many details. is it Mandatory to give all those details.

If this is a routine query raised on IT filing portal and income of your friend in India is below the qualifying exemption limit, you can respond by saying "No taxable income" and there is no requirement to file a return as such. 

However, if you are filing a tax return, you do not need to mention UAE salary income in tax return, also there is no need to mention it in the exempt income schedule. Also, no need to fill Schedule FSI and FA - they are applicable only if residential status is ROR. After filing tax return, update acknowledgement number etc. in the IT efiling website. 

Thanks!

Thanks for your reply sir, but some experts are saying that, since he is doing share trading and there is no any other source of Income we need to show the foriegn income as this is the only source for his trading. i am confused by these kind of suggestions. Shall we file IT Return without showing foriegn income in ITR? Kindly clarify me sir.

Thanks for your reply sir, but some experts are saying that, since he is doing share trading and there is no any other source of Income we need to show the foriegn income as this is the only source for his trading. i am confused by these kind of suggestions. Shall we file IT Return without showing foriegn income in ITR? Kindly clarify me sir.


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