CA Chirag Chauhan

Q) Who is NRI as per Income Tax Act?

A) Residential status of an individual or HUF or a company is of great importance in Indian Income Tax Act as the liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.

An individual is resident if any of the following conditions are satisfied: (i) he stayed in India for 182 days or more during the previous year, or (ii) he stayed in India for 365 days or more during the four preceding years and stays in India for at least 60 days. 182 days in case of an Indian citizen or a person of Indian Origin coming on a visit to India or 182 days in case of an Indian citizen going abroad for an employment during the previous year. Otherwise he is Non Resident.

Hindu Undivided Family (HUF) or firm or other Association of persons is resident of India except in cases where the control and management of its affairs is wholly situated outside India in the previous year

A company is resident in India if-it is an Indian company, or during the previous year, the control and management is situated wholly in India.

Q) I am NRI, do I need to file my Income Tax Return for A Y 2014-15?

A) NRI need to file your return provided your taxable income in India during the Assessment Year 2014-2015 was above the basic exemption limit of Rs 2 lakh OR you have earned short-term or long-term capital gains from sale of certain investments and assets, even if the gains are less than the basic exemption limit. For NRIs, certain short term or long term capital gains from sale of investments or assets are taxed even if the total income is below the basic exemption limit. There is an exception: If your taxable income consisted only of investment income (interest) and/or capital gains income and if tax has been deducted at source from such income, you do not have to file your tax returns.

Q) Is Income Tax Return need to file compulsory Online for NRI for AY 2014-15?

A) Central Board of Direct Taxes (CBDT) in India issued a notification which has made it mandatory for individuals who have annual gross total income in excess of Rs 5 lakh to file their returns online from Assessment Year 2014-2015. This applies to all individuals including non resident Indians. So as an NRI with gross total income exceeding Rs 5 lakh in Assessment Year 2014-2015, you must file your returns electronically.

In case your taxable income exceeds Rs.5 lakh in the previous year, you would be required to file the return of income electronically either using the digital signature or through submission of the verification Form ITR-V after electronically filing the return of income. In case your income does not exceed the above limit, you would also have an option to file the return of income in paper form.

Q) Are NRI were liable to pay advance tax for Assessment Year 2014-2015?

A) As per the Income Tax Act, Individual must pay advance tax in three installments during the year in case the tax payable is likely to be Rs 10,000 or more after considering TDS deduction. In case of default interest is generally 1 percent per month for the default amount and extends till the date of payment. Therefore, NRIs should evaluate if they were liable to pay advance tax and whether the same was paid in time.

Q) What is last date to file your Income Tax Return? What if NRI do not have any tax payable?

A) The last date to file returns for the financial year Assessment Year 2014-2015 is July 31st 2014. However, If you do not have any tax payable (that is all your tax has been deducted at source), you can still file your tax return by 31st March 2015 without any penalties.

Q) What if NRI do not file return till 31 March 2015?

A) If you do not file your tax returns even by the 31st of March 2015, you may be charged a penalty of Rs 5,000 for every year of delay or sometimes may not be able to file your returns at all after 2016.

Q) My NRO account TDS has been deducted at source @30%. My interest income is 1 Lakhs Rs? Do I Need to File Return?

A) As your total income is less than 2 Lakh Rs, you are not liable to file return. However you can cliam refund of Rs 30,000/- of your TDS deducted for which you should file return. If you are expecting a refund, make sure that you put accurate bank details such as account number and IFIC code of the branch as refunds are processed electronically.

Q) Can NRI get Refund of TDS by Filing IT return for Last year 2013 March Ending.

A) Yes you can file your return for Financial Year ended 2013 and get refund.

Q) What all income is exempt for NRI?

A) Dividends from equity shares and equity mutual funds is tax free in India. Interest received on the NRE account and FCNR account is tax free. Long term capital gains on equity shares and equity mutual funds (provided you pay securities transaction tax at time of sale). Further, If you have given a property on rent, you can claim an ad hoc deduction of 30% of net annual value as repairs and maintenance expenses in addition to claiming a deduction on mortgage interest.

Health insurance premium in India for yourself or your dependents, you can claim a deduction under section 80D. If the health insurance is taken for your spouse and dependent children, you can claim a deduction of Rs 15,000 per annum. An additional Rs 15,000 is available as deduction on insurance premium paid on behalf of your parents. If either of your parents is over the age of 65, the additional deduction will be Rs 20,000 instead of Rs 15,000.

Contributions to an approved charity, you can claim a deduction under section 80G. Investments such as PPF, life insurance premiums, etc. can be claimed as deduction under section 80C up to a total of Rs 1 lakh.

Q) I am NRI has deposited Rs. 1 crore in a non-resident ordinary (NRO) account in the form of fixed deposit. I want to transfer the amount from NRO to a non-residential external (NRE) account. Is it compulsory to give Form 15CB and 15CA to banks? Who has to file these forms? The bank has deducted tax at source when it credited the interest amount. What is the ceiling for transfer from NRO to NRE during a year?

A) An NRI can transfer / remit out of the NRO account subject to production of documentary evidence in support of acquisition by the remitter and an undertaking by the remitter along with a certificate by a chartered accountant in Form 15CA and 15CB

As per regulations, NRI are permitted to transfer a maximum of $1 million per financial year to your NRE account. The transfer will be subject to payment of applicable taxes. So far the amount being transferred to the NRE account represents balances for which tax has already paid or exempt there shouldn’t be additional tax.

Q) I am a non-resident Indian (NRI) and have a piece of agricultural land and an apartment in India. I earn agriculture income and rental income from these two. Do I need to file income tax return? Also, can an NRI buy agricultural or farmland in India?

A) NRI would be subject to taxes in India on any income accruing or arising from an asset located in India. The agricultural income earned by you would be exempt, whereas the rental income from the house property would be subject to tax. You would be under an obligation to file an income tax return in India on or before 31 July 2014 for financial year 2013-14 if your taxable income exceeds Rs.2 lakh in the previous year. However, you may note that the income tax law prescribes a specific method of computing taxable income where the taxpayer has earned agricultural income. While this type of income is exempt from tax, it is nonetheless included in the total income for rate purposes.

Q) Is NRI allowed to buy Agriculture property or Farm house in India?

A) NRIs and Persons of Indian Origin are not allowed to buy agricultural property, plantation or a farm house.

Q) What are the tax implications for an NRI looking at selling his property in India?

A) If the property is more than 3 years old, long term capital gains tax will be incurred on the sale of the property. On long term capital gains, tax is payable @ 20%. However, tax can be minimised by making alternative investments in India.

Q) I am a NRI living in US. Can you please advise me if long term capital gains tax are payable on sales of shares purchased by paying STT, and if it is exempt is there a limit?

A) LTCG is fully exempted on sale of listed company shares, purchased by paying STT, provided the transaction is long-term. i.e that share are hold for period of more than 12 months

Q) I an NRI, bought a property in 2005 and sold it in 2014 at a difference of Rs 40 lakhs for Rs 80 lakhs. If I repatriate this amount to the US, am I liable for any tax? What is the procedure to repatriate money to the US?

A) You have earned a long term capital gain on your property. You have to pay taxes in India on this income and then obtain a certificate from a chartered accountant. After this certificate only, you would be able to repatriate the money abroad.

Q) During Year Ended 2014, I, NRI leased out my building to a bank which is paying rent monthly but is deducting TDS. Can you please let me know what kind of documentation is required from the bank to submit my taxes in India? Is form 16 sufficient?

A) Form 16 is enough to determine your income on rent and TDS deducted by the bank.

Q) Is the money received from sale of inherited property in India taxable for an NRI? Earlier it was mandatory to put it in an NRO account but now with the RBI go ahead can we transfer it to NRE account provided the tax is paid?

A) Yes, the money received from NRI is taxable in India. Sale proceeds will first be credited to NRO account. Then you have to obtain a certificate from the chartered accountant relating to payment of taxes after which the money would be transferred from NRO account to NRE account.

Q) I hold NRI status for this year 2014. I have FD and RD accounts in ICICI Bank and they are deducting taxes. Do I need to pay the tax for the interest I get from FD and RD?

A) If the FD and RD were opened under NRE status as (NRE-FD or NRE-RD) then the interest earned on the same will not be taxable. However, in case the FD/RD was opened when you were resident Indian then the said FD will be converted to NRO- FD (upon your status being changed to NRI) and the interest earned on the same will be subject to TDS. However, depending on your cumulative tax liability in India, you may claim refund while filing tax return in India.

Q) If I have 8 year NRE FRD and if in second year I become resident, how NRE FDR will be treated after third year and will interest thereon be taxable?

A) For returning Indians, funds held in fixed deposits in NRE accounts, interest will be payable at the rate originally fixed, provided the deposit is held for the full term even after conversion into resident account. However, the interest earned after the status was updated to resident will be taxable.

Q) If I buy a property out of NRE funds and later on sell the property and credit the proceeds to my NRO account, what are the tax implications?

A) Profits earned by selling property in India will be liable to Capital gain is the difference between the sale value of the property and its cost of purchase. Capital gains can be classified as short term (up to 36 months) or long term (more than 36 months), depending on the period for which the property is held. Short-term capital gain will be taxed at normal slab rates and long-term gain will be taxed at 20%.

If a residential property is sold after being held for more than three years and the proceeds are reinvested for purchase of a new residential property, then the capital gains will be exempt to the extent of the amount reinvested. The exemption is subject to the new property being purchased within a year before or two years from the date of sale, or if new property is being constructed within three years from the date of sale.

Q) Can NRIs can also claim exemption by investing the amount of capital gains in bonds issued by the National Highways Authority of India (NHAI) or Rural Electrification Corporation (REC) in case of Profit from sale of property which is long term?

A) Yes Investment in the specified bonds is to be made within six months of such sale and there is a lock-in period of three years for such bonds.

Q) I am an Indian resident taking up employment abroad. I want to know whether I am eligible to claim exemption of income under NRI category. If the employment is in Dubai, where there is no tax on income, will it make any difference?

A) Your employment in Dubai will not make any difference. As per taxation laws in India, your overseas income getting credited to your NR account in India will not be taxed. It is indifferent to overseas country tax regulations.

Q) I have an account in Qatar and want to send money to my resident (saving) account in SBI Bank, Will it be taxable? What is the ceiling for wire transfer? Can I open an NRO/NRE account before completing first six months out of India.

A) Yes, you can send money to your resident account and the said amount will not be taxable because it will be from your overseas earnings. There is no upper cap on the amount you can wire transfer to a bank account in India. Yes, based on a valid work visa and company offer letter, you can convert your existing resident account into NRO and open a NRE account as well.

Q) Can an NRI returning back to India, continue to hold his foreign earnings overseas, and gradually bring the money back to India as and when required?

A) You can bring your earnings as you wish. You should take care of income tax of your earnings. After you are return to India, your income earned outside India will not be taxable in India provided it is received in India for two years. After the two years, your worldwide income would be taxable in India.

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

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84 responses to “NRI – Non Resident Indian –FAQs on Income Tax for AY 2014-15”

  1. Rajanna K V says:

    What will be the Tax impact on NRE FD interest once the NRI becomes RNOR

  2. S.K.Wadhwa says:

    My daughter is an NRI. She has an Australian passport and an OCI card. She has sold a plot of land in July 2016 which she had purchased in 2005 thus making long term capital gains. She invested all the capital gains in REC Capital Gain Bonds within 6 months of the sale. Her only other income is interest income of Rs. 20,000/- from her NRO savings account. Thus, her tax liability is NIL for AY 2017-18. MY question is : Has my daughter to file her income tax return for AY 2017-18 even though her tax liability is NIL?

    • RAJESH JAIN says:

      Hi, it is advisable to file return of income as there is element of Capital Gain from the transfer of property, though final tax liability may be NIL, this is to avoid any query from IT Dept about sale of property at later stage; as Dept do have information about every purchase & sale immovable property above Rs.30 Lacs through AIR mode.

  3. Manish Mujardi says:

    Dear Sir,

    I impressed by your supportive answers.
    May you please guide me for the below question.

    I am working in Morocco and I am NRI. I have no tax levied at Morocco. I want to file return in India for the A.Y. 2016-17 for below income:

    1. My salary has been credited directly in India’s NRE account which is approx. 13 lacs.

    2. I have FD interest income on which TDS has been deducted.

    3. Approx tax calculated on my all above income is 2.54lacs

    I want to know after application of all the rules and regulations, My calculation is right or wrong.

    • Subra says:

      I am a NRI based in Singapore and I buy & sell shares using NRE PINS (Portfolio Investment Scheme), NRE non-PINS, NRO PINS and NRO Non-PINS accounts.

      Please advise whether I need to file income tax returns for the A.Y. 2016-17 for the below income:
      1. Interest earn from NRO saving account and NRO FD is less than 1 Lakh rupess in FY16-17.

      2. I sold shares from my NRE PINS (Portfolio Investment Scheme), NRE non-PINS, NRO PINS and NRO Non-PINS account, the values of these sold shares in FY16-17 was around 8 Lakh rupees but I was holding all these sold share for more than 2 years. I understand that there is no TDS applicable for long term capital gains on equity shares.

  4. Narasial says:

    dear sir,Appreciate your kind guidance on the following. Viz.I sold my sons house site ,his self earned ,thro GPA given to me .This earned capital gains Now the Q is whether I can pay capital gains tax of 20% after full calculation on his behalf .Is it necessary for him to file IT returns in India since this is only is his income .If so can I file IT Returns on his behalf. Or he only has to file If I file returns on his behalf how to furnish validation of such returns to IT dept.will there be any other problems for him He wants to pay fully all applicable CG tax Thanks in advance for your reply on this e mail address. Regards. Narasial

    Sent from my iPad

  5. satya says:

    Hi, If a person went USA on work visa on permanent basis(i.e.salary also receiving from USA payroll) from march 2015 but again he came to india and stayed in india around 90 days in between june 2015 to dec 2015 in purpose of USA company assignment to india company but not received any income from india company and also not received any allowance, in this case for FY 2015-2016(assessment year 2016-17) will he be treated as NRI?

  6. satya says:

    Hi, If a person went USA on work visa on perment basis(i.e.salary also receiving from USA payroll) from march 2015 but again he came to india and stayed in india around 90 days in between june 2015 to dec 2015 in purpose of USA company assignment to india company but not recieved any income from india company and also not recieved any allowance, in this case for FY 2015-2016(assessment year 2016-17) will he be treated as NRI?

  7. satya says:

    Hi, If a person went USA on work visa on perment basis(i.e.salary also receiving from USA payroll) from march 2015 but again he came to india and stayed in india around 90 days in between june 2015 to dec 2015 in purpose of USA company assignment to india company but not recieved any income from india company and also not recieved any allowance, in this case for FY 2015-2016(assessment year 2016-17) will he be treated as NRI?

  8. Pritam says:

    I have shifted to Dubai on 26th sept 2015 for employment. As I was in India for less than six months, is it mandatory for me to file ITR for 2015-16.

    • Noname says:

      In Case of NRI, there is requirement for filling of return if the income exceeds maximum amount chargable to tax.We have to see whether your income which are accrued in India or Received in India are chargable to Tax in that financial year only then any one can comment.

  9. CA Chirag Chauhan says:

    Please Drop all Queries at chirag@cachauhan.in to take it forward

  10. CA Chirag Chauhan says:

    Non Residence

  11. CA Chirag Chauhan says:

    You can contact me at chirag@cachauhan.in to take it forward a

  12. CA Chirag Chauhan says:

    You can contact me at chirag@cachauhan.in to take it forward

  13. vidhya says:

    Dear sir
    My brother is working in ship, he is NRI but for the FY 2015-16 he was in India for more than 182 days so he becomes a resident for the FY 2015-16, but the FY 2014-15 he missed his NRI Status by staying 3 days excess in India, do he has to pay tax on income earned during the FY 2014-15?

  14. Prakash says:

    I am an NRI and have been filing my IT Returns for the last 2 years. I want to enter into an Agreement with a Construction Partnership firm for financing INR 40 lacs for a period of 2 years at interest of 18% p.a. payable by cheque to me at the end of 2 years.
    I have the following queries:
    1. Can I, as NRI, provide finance to a/or invest in Partnership firm in India
    2. As the interest is payable at the end of 2 years, I want to show interest accrued for the 1st year in my next IT Return
    3. Can I request the Partnership firm to issue me Interest Accrued Letter for the purpose of IT
    4. Or will the Partnership firm issue me TDS certificate with details of Interest Accrued for the 1st year
    I should be grateful if you could reply which is the best course, as I do not want to show total interest paid at the end of 2 years. Since the amount of interest payable to me will be large and I may have to shell down more Income-tax.

  15. Jay says:

    Hi Chirag,

    I am abroad since last 2 years.
    1.other than my NRE SB, I have many resident SB a/c still operating. Since all are Either or survivor (me as first or second holder) with my close family members. Do I need to close all of them or covert to NRO?
    2.I have shares and MF in my demat account (resident status) invested before I left India. What should I do? Can I trade? If required how can I convert it to NRI?

    Thanks in advance.

    Jay.

  16. Akhil says:

    Dear Sir,

    I have a small query, I travel to USA for work on 04-July-2014 and return back to India on 28-March-2015, i only stay in India for 95 days in the FY 2014-2015, what will be my resident status in India?
    A huge thanks in advance.
    Regards
    Akhil

  17. Krishnan says:

    Ny brother is a NRI (US Citizen and having OCI card)living in India after retirement from USA.
    He has his pension from abroad and does not have any Indian income and he lives on the pension being earned abroad in USA.Hepays his taxes abroad and filing his IT return abroad also.
    pls let me know whether he has to pay any Tax in India.He has constructed his house and stays here only.
    I repeat he does not have any Indian income except for SB interest,
    he visits USA every year or once in 2 years and would like to stay here in India because of health problems.I would be obliged for a reply to my mail.
    Regards
    Krishnan

  18. Alok says:

    I am working as a contractor employed with a company registered in UK. i live in Italy, is it possible to get my salary credited directly in NRE account? Will that be taxable in India?

  19. Praveen says:

    Hi, I have moved to US on deputation in the end of Feb-2015 and my India payroll will still continue and the India salary amount is converted into USD and paid as part of my US salary and it is taxed in US. My employer has deducted tax for march-2015 on Indian salary and also taxed for the same in US.

    In this case does my March-2015 salary is Taxable in India ? as my salary is paid in US and taxed in US.

  20. Swaroop says:

    I missed filing my IT return in India for AY 2012 – 13. Can I file ITR for AY 2012-13 now? I have only bank interest income against which TDS has been deducted which I will get refund on filing ITR.

    Presently my status is NRI but during AY 2012-13 my status was resident Indian. What status I should mention in ITR for AY 2012-13? Is there any penalty for late filing? – Thanks

  21. Swaroop says:

    I missed filing my IT return in India for AY 2012 – 13. Can I file ITR for AY 2012-13 now? I have only bank interest income against which TDS has been deducted which I will get refund on filing ITR.

    Presently my status is NRI but during AY 2012-13 my status was resident Indian. How to file return as an NRI or Resident Indian for AY 2012-13? Is there any penalty for late filing? – Thanks

  22. Anil Kumar says:

    1.I am staying in UAE; I came here for employment; normally in a year I stay in India for only 45 days during my vacation. Is my status is NRI?

    2. I have one NRE account and One NRO account in AXIS bank. I have one own resident saving account (Punjab Nation Bank); other resident joint saving account (Punjab Nation Bank); with my mother and one additional resident saving account (Punjab Nation Bank); with my wife. My wife is staying with me in UAE. Is it required to convert the both resident saving account to NRO or only my own account to NRO or the account with my wife to be converted to NRO or No need to convert to resident saving account to NRO since I have one NRO account already in AXIS Bank?

    3. I am planning to purchase one house in India; I have amount in my NRO account, NRE account and also in resident joint account with my mother.

    I have done the partial payment up to now from my NRE account, some from NRO account and some from resident joint account with my mother.
    Is it correct to do payment from resident joint account also?

    4. I want to pay stamp duty and registration fees for my new house; Can I make payment for the stamp duty and registration process from resident joint saving account, or is it required to pay from NRE only or from NRO only.

    5. Can stamp duty & registration fees can be paid by DD instead of NEFT from my NRE or is it only from NRO.
    My mother is mandate holder for both NRE and NRO account. Can she process for DD on the behalf of me for DD either from NRE or NRO.

  23. Sushil Kumar says:

    I WANT TO KNOW THAT IF NRI HAVING SHORT TERM( SHARES) CAPITAL GAIN & DIVIDENT INCOME FROM INDIAN COMPANY. HOW CAN HE FILE HIS RETURN & WHAT WILL B E HIS TAX LIABILITES IN FINANCIAL YEAR 2014-2015

  24. S Pathare says:

    I am NRI n have a house property from loan availed from my friend abroad. can I ger set off for interest paid to him out of India?

  25. Dilipkumar says:

    Dear Sir,

    I am NRI since June, 2006 & I have short term profit on sale of shares in India for the FY 2013-14, about Rs. 50,000 + share brokerage income Rs. 30,000 (TDS already deducted by broker) + Agriculture income Rs. 110,000 = Total income Rs.190,000, And Same has happened in FY 2014-15, but agriculture income increased to 200,000 with total income of Rs. 280,000, Is it compulsory for me to file a return for FY 2013-14 & 2014-15 as well?

    Is there any consequences, if I do not file any return? If I file now, will they charge me any penalty for any of those years?

    Your reply will be helpful to me.

  26. priyanka says:

    m a student..wanted to know about taxability of income from interest from NRE A/c. whether it is exempt only to non-resident or is it even to resident but not ordinarily resident and resident and ordinarily resident individuals..
    please reply

    thanks

  27. Rajanna K V says:

    Dear Sir,
    I am working abroad for over 11 years & would like to settle down in India permanently. Now I have invested in NRE Fixed Deposits in Indian Banks for a fixed terms of 5 years & 10 years. As per IT rules now the interest earned on NRE FDs is tax free. So if I return to India & my FDs have still maturity period balance another 5 years or so, in this case whether the interest earned on my NRE FDs after becoming Resident Indian would be still Tax Free or Taxable. Please assist me in this.
    Regards,
    Rajanna K V

  28. Rupesh says:

    Hello

    I am NRI , i would like to sell my old property (more than 15 years old) , the property sell amount will be used for paying my home loan principle amount. In this case, is any TDS is applicable on capital gain income (old property sell income)?

  29. Hari says:

    Hi,
    I stayed in US from Aug ’14 to May ’15. till Aug’14 i got salary in India. from sep ’14 onwards i am getting salary in US. I sayed in US More than 8 months. I have paid taxes in US and i have transferred my savings to india bank account. now i want to fill income tax in india. which itrv from do i need to fill in india and where to show the transferred amount from us bank to india bank. Pls suggest me how to fill income tax in india.

    Thanks
    Hari

  30. zuberpatel says:

    Sir one of my friend who is NRI his father buy 1 property in 1973 costing Rs.600000 if he sell now so wt is the tax slab 4 him. Property is mow holding by three person all r blood brother became as a owner after death of his father.

  31. Barun says:

    Hello,

    Hope all is well.

    I work for a multinational IT company, based out in India. At the beginning of 2014 I came to Europe for office work for a short term duration. But then the stay got extended and I happened to stay there for the entire Financial year of 2014-15.

    As compensation, I always got the Indian salary (for which TDS has been deducted as usual) and in Europe I got per day allowance to compensate the living cost differences.

    My question is, if I save a chunk of money from my per day allowance and I bring/remit those to India, should I have to give tax for that? I didn’t have any Foreign account during this time. The per day amount in Euro has been deposited in a Forex card of an Indian bank.

    I’d really appreciate if you could take some time of yours and guide me thru.

  32. sathiyanarayanan says:

    Hi,

    Now am an NRI and working in abroad countries around of 8 years. As per the situation unempolyement reason i am going to work in India. In the financel year (2015-2016) i have worked in the abroad less than 90 days.

    My doubts is whatever i have earned the money between 90 days in the abraod, have shall i need to pay the Tax? pls clarify to me

  33. Dimple Shah says:

    Hi Chirag,

    if a NRI is transfering his existing stake of 49% (since 2002-03) to foreign national individual at FMV what is the tax implication?

  34. Vivek says:

    An NRI has only income which is supposed to be taxable e.g. long term capital gain from stocks, but its more than 2.5 lakh, is it mandatory to file ITR?

  35. Shantanu Nafrey says:

    Thank you for above article which takes care of almost all queries an NRI may have on Indian taxation for NRIs.

  36. Devendra says:

    I am NRI for last 8 years. I have NRE & NRO FDs.
    1) Which ITR return form i should fill?
    2) For NRO interest income and tax deduction i get Form 16 from bank..
    3) For NRE FD interest is tax free and exempted.

    Do I need to show the NRE FD interest as exempted in ITR Return and it is more tan 100K.
    Kindly advise

  37. riyaz says:

    1) I am an nri do we get exemption in income tax income in inda
    eg rent for house
    fd nro ac

    if yes that exemption does my nre fd interst whichnis not taxable is count in that?

    2) my wife is nri but a house wife no foreign income source
    so if any income on her name in india like fd or rent of house is taxable how about exemption for her

    3) my daughter is an nri and a student 8year is there is exemption for her in tax if any fd on her name

  38. Bineet says:

    I am bit confused as to decide if i am an NRI or not for the purpose of filing income tax return. I was in India till 29 Aug 2012 when i first traveled abroad for studies. Then during holidays i went back to India from July 2, 2013 to sept 9, 2013. Since then i am outside india. Now for the financial Year 2012-2013 and for subsequent financial years, what should i declare myself in IT return form, NRI or Resident ? Thanks . Kindly help

    Thanks

  39. Ajit says:

    Hello,
    There are some announcements in Mumbai Mirror (p 17) paper today 18th april 2015, regarding changes in the ITR forms and the need to declare foreign accounts etc.

    Are there any changes in this as of today that impact the NRIs? Do NRIs need to declare foreign accounts as well?

    Please let me know
    Regards

  40. Mbhatia says:

    Hi,

    I stayed in USA for 3 months on H1b visa and during this period I earned salary and Paid my taxes. I have already Filed my USA ITR. Please let me know if I need to include the money I earned in USA in indian ITR?

    Thanks

  41. AC says:

    Sir

    I was staying in USA for 4 years and came back in 2007. During my stay in USA I had invested in stock market. I have been holding the shares since then. Now if I sell the shares in US stock market, am I liable for any tax on long term capital gains here in India?

    Kindly clarify.

    thanks
    AC

  42. H S Srivastava says:

    Dear Sir
    I am currently working in Oman (during financial year- 2014-15) my employer is in Oman salary coming in Oman account.will it be income tax paid?
    If not i have to fill online IT return?
    Also before this up to financial year 2013-14 all IT return are filled by me.

  43. Guru says:

    I am an NRI
    Bank deducts Tax on NRO and on Capital Gains for sale of shares for the years 2009-10 and 2010-11.(Under RBI approved Portfolio schmes). The sale proceeds are credited to NRE (after TDS) During those years I also got NRE Savings and NRE Fixed Deposits interest incomes and FCNR interest incomes. Whether for filing returns do I have show the NRE Tax free interest also or I can omit.

  44. P S NEEMISH says:

    Hello my father is going to china and will stay there for 1 year on job but the company is indian and they told that they will cut tds why did they told that and can we retain the amount of tds because he is a nri. and if yes from which itr.

    he is a professional who is working on shipyards on contract.

  45. Mani Sriram says:

    I would appreciate answer to following queries:
    1. I was an NRI till 2013-14 when I opened few NRE Fixed Deposits. For FY 2014-15 I acquired NOR status. I informed the banks to redesignate the FD, but continue holding them. Now in year FY2015-16 I am likely to acquire NRI status again. Can I ask the bank to redesignate these accounts back to NRE, after deducting taxes for interest till date I become NRI (or is it FY basis?) or one has to follow the 15ca/15cb procedures?
    2. When I am Not ordinarily resident, I worked for a company that is registered abroad from home for which I received monthly fixed remuneration as salary. In this period I have travelled out of the country related to this work which together account for over 184 days in the FY 2014-15. I have no employment visa, but only business travel visas. So will I be considered as NRI for FY2014-15 and will be allowed to hold my NRE accounts as they are (i.e. FEMA will consider me as NRI?)

  46. Vikram says:

    My wife joined me in the US recently. However, she is able to continue her job in India as it is a remote job that can be done via emails/skype. We got our GC recently. How should she be taxed in India? She is paid in Indian rupees which is deposited in her account in India.

  47. Rajneesh Kamal Nag says:

    Sir,
    visa fees paid to any foreign countries is taxable in India or not.
    rgds

  48. Rajesh Malhotra says:

    What is the rate of TDS payable for rent received for NRI ?

  49. Harsha says:

    Hi,

    I have done some work for a US company from India. I am registered as an employee with the company. What would be the tax guidelines if they pay the salary to my Indian bank account?

    Please help, its urgent.

    Thanks,
    Harsha.

  50. Tanmoy says:

    I am an NRI (USA) for the tax purpose of AY 2014-15. I don’t have any salary income in India for the mentioned period. However, I have income from FD and Bank Interests only (< 2lacs). I also have some losses from OPTION trading (NIFTY).

    Do I need to file any tax return if I don't wish to claim my losses from OPTION trading?

    Thanks for your response.

  51. CA Chirag says:

    @
    a.k.sinharay
    Yes if you are out for Employment purpose !!

  52. a.k.sinharay says:

    serving foreign ships & earning in dollars.last 12 years maintaining nre status.now interested to join in a private limited company as a director to serve during my home stay.may i will be eligible to maintain nre status(will be out of india for 183 days/year)?

  53. prasad says:

    pls tell me whiling filing ITR 2 for and NRI whether we have to file the income earned in australia and the bank balance in foreign country and assets in aboroad or shall we leave the colum blank.

  54. prasad says:

    pls tell me while filing ITR 2 for the AY 2014-15 an NRI has to give details of his total foreign income, fixed assets and tax paid details in the return? pls give reply
    with regards

  55. CA Chirag says:

    @ Rajkamal. Interest earn is taxable as you change your status to resident. you need to inform bank also for TDS deduction else you will be charged penal interest on tax payable

  56. DIVYA says:

    A person went to Singapore after her marriage on Resident Visa. After some time she got Job there and she changes her Visa as Work Visa. After 4 years working there She with her Husband got P.R Status of Singapore country, She will be returning to India with her Husband. In India She will work for the Same Singapore Company in which she is working now in India as Work at Home Status., since the said Singapore company does not have any Branch In INDIA.

    My question is :

    What will be her NRI Status if she is residing in India for more than 182 Days in a financial Year.

    If she travel Abroad during the Period for less than 180 days in a financial year then also what will be the NRI Status. Will she be treated as Resident or NRI as per Income Tax law.

    Will she be charged as per Indian Income Tax law even if she is working for a foreign Company in India and paid in Singapore Currency. and what will be the changes as per Indian Income Tax Law if she is paid in Indian Bank in Indian Currency.

    • CA Chirag says:

      @ Divya If she is out side india for any FY for more than 182 days she would be treated as NRI else Resident indian and global income will be taxable in India

  57. v.manickam says:

    I’m working in indonesia from June15 2014.,
    Before that I was worked in India in one corporate. Last year I filed my returns in online.
    Now I am getting 1500 us per month how can I file the income tax.?
    The salary was directly paid to my nri account Iin india

  58. Rajkamal Sinha says:

    i am working outside for last 7 years and have NRE account at India where i send my salary .
    In last few year i deposited 1.5 Cr As NRE fix deposit with copulative interest as well as few are on monthly interest .

    i am retiring back India in March 2015 and will stay in India after that —

    I want to know -is the Interest earn during 2015 – 2016 on NRE account is taxable ??

  59. NAMITA says:

    I AM A NRI AND WANT TO COME BACK TO INDIA PERMANENTLY. IN INDIA I WANT TO TAKE LOAN AND AS PER BANKING RULES INCOME TAX RETURN OF THREE PREVIOUS YEARS ARE REQUIRED AND IN FOREIGN I AM ON SALARY BASIS WHICH IS EXEMPT IN INDIA. HOW SHOULD I FILE INCOME TAX RETURN SO AS ACCESS ME TO TAKE LOAN WHEN I COME BACK TO INDIA??

  60. RAJAN says:

    MY CLIENT HAVING SALARY INCOME OF RS 3500000 IN 12-13 HE IS OUT OF INDIA FOUR LAST FOUR YEARS RESIDENTIAL STATUS IS NRI , IN MY OPINION HE IS NOT LIABLE TO TAXED IN INDIA BUT WHEN I FILLIED HIS RETURN FROM INCOMETAX JAVA UTILITY HIS TAX LIABILITIES COMING AROUND 850000 WHY. PLZ GIVE ME A SOLUTION FOR IT

  61. Andy says:

    Dear Sir

    I have worked in UAE from Mid feb.14 to Mid sept 14. Due to to family problems I am back to India. Whether my income during above period will be taxable ?? Pls advise …

    Andy.

  62. VICKY KAPOOR says:

    Sir I am N.RESIDENT FOR A.Y 14-15.I HV SALARY INCOME OF $ 60000 FROM USA BASED INFO TECH. CO. IN USA.TDS DEDUCTED IN USA AT 30%.Can i get any tax benefit & rebate in India.

  63. GHADIYARAM UPENDRA SARMA says:

    rate of incometax on interest earned for year ended 31.3.2014.
    upendrasarma.g@gmail.com
    19.9.2014

  64. CA Chirag says:

    Dear all,

    if you have any queries do post to my Mail Id chirag@cachauhan.in

  65. Manish Agarwal says:

    Thank You Sir,

    Article was very helpful.

  66. Sarup Singh says:

    Dear sir
    Kindly refer to my queries mention in my previous mail . Kindly read in six line Non resident account as Non resident Ordinary account

    Thanks

  67. Sarup Singh says:

    I was in USA and was maintaing NRE FDR account with the Bank. I returned in DEC 2011 and accordingly requested the bank for redesignation of my account to resident account . However in April 2013 I shifted to Australia for employment and my present status is Non resident .can you guide me whether my account which was earlier NRE account can be redesigated as NRE account from the resident account since the amount in my FDR account was repatriated from abroad .If the answer is no will that account will be redesigated as Non Resident account.What will rate of TDS on interest income earned on this FDRs.Whether the exemption limit of Rs200000/- willbe available
    To me

    Thanks

  68. ABHISHEK JINDAL says:

    IF MY RESIDENTIAL STATUS IS NRI IN THE LAST YEAR THEN DO WE NEED TO SHOW THE SALARY INCOME EARNED ABROAD FROM FOREIGN COMPANY IN THE ITR?

  69. Sohfay says:

    Hi,

    I was on UK deputation for one year from 1 Dec 2012 to 29 Nov 2013. While in UK my company paid me salary of 32k GBP via the split pay model i.e UK allowances + Indian salary (converted to GBP and paid in UK account only). The company also paid tax of around 870GBP (part of my CTC but paid directly to the UK govt by the company ) on my behalf. On my return, the company deducted tax on my Indian salary from Apr 13 to Nov 13 in one go mentioning that I was a Resident Indian (same as condition ii. mentioned by you in your first FAQ i.e 60+ days in India FY1314 and 365+ days during four preceding years in India) and hence my income was taxable. Now I have following questions:
    a) In condition ii. for determining residency status, the 60 days period is extended to 182 days in case of an Indian citizen going abroad for an employment during the previous year. Does such Indian citizens include individuals that are sent to onsite deputation like in my case? In other words, does the extension of 60 days to 182 days apply in my case as well making me a NRI?
    b) Since I have paid tax in both UK and India, can I expect some tax relief? If yes, how?
    c) The residency calculations rules are flawed and unfair. For instance, our company often sends its employees to UK on one year visa. Employees who go to UK in the months Apr – Sep and return after one year become NRIs and are not taxed in India for previous FY. Those who go to UK in months Oct – Jan and return after one year become RIs and are thus taxed in India for the entire FY. The residency status for tax calucation thus reduces to a ‘lucky month’ affair i.e you are a NRI if you go in months Apr-Sep and RI if you go in months Oct – Jan which is very unfair.

  70. C.P.Gupta says:

    very informative article.
    C.P.gupta

  71. kamal says:

    There is an Indian company registered under the Indian Companies Act 1956 named XYZ P. Ltd in which 65% shares is hold by an NRI.

    However, such NRI shareholder is not the director of the said XYZ P. LTD.

    Further, XYZ P. Ltd. owns two Wholly Owned Subsidiaries Companies (registered under the Indian Companies Act 1956).

    Required your kind professional assistance wrt the following.

    1. Whether XYZ P. Ltd. would tantamount to become an Overseas Corporate Body(OCB) ? And if yes, under which provision of which Act (say FEMA or other applicable law in India)?

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