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US Citizen living in India and questions related to RNOR

Sunder (Manager) (95 Points)

30 July 2010

Friends

My status is RNOR and foreign income (dividends, interests ...etc...) are exempt from Indian Income Tax. I am filling ITR2 since I am receiving rent in India. I am US Citizen and returned to India. On March 2010, my RNOR period ends. My questions are:

1. First scenerio : Since this income is exempt, I need not declare anywhere in ITR2.
2. Second scenerio : I need to declare this income in ITR2 and claim exemption. Can one of you please point which schedule I need to declare this income and claim exemption.
3. Last year, my return is filed as "Resident", eventhough I am RNOR. I just came to know that I cannot file revised returns since the deadline (31/03/2010) is long past. Am I right? Is there anyway to correct this?

Thank You

Sunder

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2 Replies

venkatraman shrinivas (Tax consultant/Tax Advocate In Practice.) (313 Points)
Replied 31 July 2010

You say athat you are a citizen of the United States. Can you please furnish the number of days you had stayed in India during the period .4.2009 to 31.3.2010, which is matrerial to determine your residential status.. The return for the period ended 31.3.2010 is due to be filed on or before 31.7.2010. However, it can also be filed any time before 31.3.2011. If you file the return within the normal time, you are entitled to file a revised return under serction 139(5) to correct any omission or commission. If you file the return within the extended time under section 139(4), you are not entitled to file a revised return.

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Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 31 July 2010

UNDER INDIAN INCOME TAX ACT, CITIZENSHIP IS NOT AN CRITERIA FOR TAXABILITY OF INCOME. TAXABILITY DEPENDS UNPON U'R RESIDENTIAL STATUS. SO FIRST U HAVE TO DETERMINE WHETHER DURING 01.04.09 TO 31.03.10, WHETHER U R RESIDENT. IF YES, NEXT U HAVE TO FIND OUT WHETHER, U R "ROR OR RNOR". IF U R RNOR DURING , 01.04.09 TO 31.03.10. INCOME ACCRUED AND RECEIVED OUTSIDE INDIA WOULD NOT GET TAXABLE IN INDIA. FURTHER, THERE IS NO NECESSITY TO DISCLOSE THIS IN YOUR ITR-2 AS IT IS NOT TAXABLE AT ALL IN INDIA.

WITH REGARD TOU'R LAST YEAR RETURN FOR FY 2008-2009, U STILL CAN FILED REVISED RETURN UNDER SECTION 139(5) OF THE INCOME TAX ACT OR OR BEFORE 31.03.2011 I.E WITHIN ONE YEAR FROM THE END OF ASSESSMENT YEAR OR BEFORE THE COMPLETION OF ASSESSMENT WHICHEVER IS EARLIER.

REGARDS,

MANOJ

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