The provision of disclosure of Assets and Liabilities applies to an assesse when the taxable income exceeds Rs 50 lakhs in the given previous year
ITR 1 and ITR 4 will not be applicable to those whose income exceeds Rs 50 Lakhs hence the assesse will fall under ITR 2 or 3
When a person becomes NRI
As per section 6 of Income Tax Act, 1961, an Indian citizen becomes an NRI when the following criteria is met:
1. If he stays in India for a period of less than 182 days in an year, or
2. If he stays in India for less than 60 days in the previous year and less than 365 days in the last 4 previous years preceding the previous year
With the Amendment made by Finance Act 2020 if an Indian citizen visits India becomes resident if he
1. Stays in India for less than 182 days or
2. Stays for 162 days in the previous year and less than 365 days in 4 previous years preceding to the previous year and if his total income other than from foreign source is more than Rs 15 lakhs in the previous year and if he is not liable to tax in any other country by his domicile, residency or any other criteria of similar nature
In case of Non-Resident Indians ITR 1 will not be applicable as it is applicable only to the person Resident in India
If in case a NRI’s taxable income in a particular year exceeds Rs 50 lakhs, he is required to disclose the assets and liabilities existing in India only. If there is any asset which is located outside India or if there is any liability which is not in India then the same need not be reported in the Assets and liabilities Schedule
Under the AL Schedule assesse is required to disclose Movable Assets, Immovable assets and Liabilities in connection with the assets held by the assesse. Detailed information with respect to the Immovable Assets is to be given, if there is any asset which is jointly owned, the details of the owner also need to be reported
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