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which ITR is applicable ?

likith nsvm (34 Points)

29 June 2019

which ITR is applicable for non resident having only rental income in india ?

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16 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184735 Points)
Replied 29 June 2019

ITR 2

1 Like

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siddhesh (si) (198 Points)
Replied 29 June 2019

Dear Brother Likhit,

ITR 2 is Applicable for filing Rental Income of Non resident.

ITR 1

For Individuals being a Resident (other than Not Ordinarily Resident) having Total Income upto Rs.50 lakhs, having Income from Salaries, One House Property, Other Sources (Interest etc.), and Agricultural Income upto Rs.5 thousand(Not for an Individual who is either Director in a company or has invested in Unlisted Equity Shares)

PR3
26/06/2019

Instruction

ITR 2

For Individuals and HUFs not having income from profits and gains of business or profession

PR1.2
14/06/2019

PR1.4
14/06/2019

Instruction

ITR 3

For individuals and HUFs having income from profits and gains of business or profession

Shankar Rugge (376 Points)
Replied 01 July 2019

yes ITR2. Also which ITR is there for NRI having only interest income from bank NRO account?

Manav Soneji (other) (343 Points)
Replied 01 July 2019

Same ITR 2.

2 Like

siddhesh (si) (198 Points)
Replied 01 July 2019

Same ITR 2

Any Income Other than any Business or Professional trust income ITR 2 is preferred.

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Shankar Rugge (376 Points)
Replied 01 July 2019

It is applicable for NRI only I suppose. If resident Indian has only interest income and no other income then then ITR1 is applicable as per new IT form rules

siddhesh (si) (198 Points)
Replied 01 July 2019

Yes Obviously.

If you are a resident person as per income tact 1961 then if you have only saving and fixed deposit form of interest and if such income is less than RS 50Lakh then ITR 1 is applicable other wise ITR 2 is applicable for such a person.

Shankar Rugge (376 Points)
Replied 01 July 2019

hi Siddhesh Thanks for your prompt reply. Further to your reply if dividend income from listed mutual fund and after deducting STT say about 7000 is there which in any case is tax free then still ITR 1 to be used .i.e. interest on FD plus tax free dividend income

siddhesh (si) (198 Points)
Replied 01 July 2019

Dear Shankar,

Income includes only Interest Income Not Dividend Income . it should direcly go to exempt income column directly.

if the dividend income from listed company and mutual fund is exempt under section 10(38) up to RS 1,00,000 /- .

therefore it should be shown in exempt income head under ITR-1.

For Interest Income

If you are not Senior Citizen : - then on saving bank under section 80tta upto rs 10000 interest is exempt.

if you are senior Citizen :- then on saving bank and FD interest under section 80TTB upto RS 50000 interest is exempt.

Shankar Rugge (376 Points)
Replied 01 July 2019

Thanks Siddhesh. Now a slightly complicated one.

I included wife's FD int in my ITR2. Say Rs 90000/- as spouse income in schedule SPI. Now my wife earns interest on interest i.e. on 90000/- Say Rs 9000/- . So I file my wife return for Rs 9000/- only or add rs 90000/- to it though I included it in my ITR as spouse int income.

Int on int is wife's income. So theoretically I should be filing her ITR1 only for Rs 9000/- or file for Rs 90000+ 9000=99000/-

Though it is under 2.5 lakh no problems. But what if it goes above exempt limit

Thanks in advance

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Shankar Rugge (376 Points)
Replied 01 July 2019

Dear Siddhesh Here is slightly complicated one. My wife's FD int Rs 90000/- I added in schedule SPI of my ITR2 and included in my income. Now wife say earns int on this 90000/- say Rs 9000/- which is entirely hers and I do not include in my ITR2 under SPI. Now when I file wife's ITR1 how much int I should show against income from other sources? Rs 9000/- or Rs 90000+9000 If it goes beyond exempt limit of Rs 2.5 lakh or whatever then how tax will be calculated for her? Thanks in advance

Shankar Rugge (376 Points)
Replied 02 July 2019

Hi Siddhesh Thanks for reply. Now little more complicated please

My wife income from FD int Rs 90000 I added to my income under Schedule SPI in ITR2. Further wife invested this 90000 into FD in her name and got int say Rs 8000.

In my wife's ITR1 I should be showing only Rs 8000 or 90000+8000. Rs 8000 not to be clubbed with me since it is int over int .

Further assume that TDS has been deducted on 90000/- which I added in my income as above. SO per force I have to add 90000 to my wife's ITR1 to claim the TDS since I already included in my ITR2 Schedule SPI the same and paid Income tax including surtax on the same.

What should be done in both cases please

Shankar Rugge (376 Points)
Replied 04 July 2019

Any one else with suitable reply please

siddhesh (si) (198 Points)
Replied 04 July 2019

Dear Sir,

CASE -1

if you are clubbed wife's FD income of Rs 90000 in ITR 2 in this case you cannot claim TDS and only paid tax against such income on which TDS is Made. So I suggest that please Revise your ITR-2 return if you are included FD income or If you are not filed then do not show such income in your ITR 2.

CASE-2

If you are clubbed such FD income of Rs 90000 and paid tax on them then file revise return and claim Refund in ITR 2 if any through not showing such FD interest.

CASE-3

Interest Income and interest on such interest received of RS 90000 + 9000 please show in wife ITR-1 for Claiming TDS as refund if such income do not go beyond 250000 if below 60 years and 300000 above 60years and upto 80 years and 500000 80 years or more.

CASE-4

If you are not revise ITR-2 because of Short income it result in Notice to your wife against ITR 1 because in form 26AS such RS 90000 is reflected against your Wife's pan.

Conclusion

Lastly Do not reflect 90000+9000 in your ITR -2 but reflect in your wife ITR 1 for claiming TDS.

do not hesitate to asked any query.