Non-Resident Return Filing and requirement of Aadhaar card

Facts:-

♠ ‘A’ an Indian by birth.

♠ Got his British citizenship and Overseas Citizenship Certificate two years back.

♠ He is 37 years old.

♠ He has valid PAN card but no Aadhaar card.

Issues to be addressed or Queries to be resolved:-

(a) Whether ‘A’ has to file Income Tax return here in India for FY 18-19?

(b) Which Form ‘A’ has to use if he has to file a return?

(c) Whether ‘A’ can file Return of Income without Aadhar card?

Legal Provisions:-

• A person who is an Indian Origin and staying abroad considered an Indian resident for a financial year: If he is in India for at least 6 months (182 days to be exact) during the financial year else he becomes a Non-Resident.
• An NRI, like any other individual taxpayer, must file his return of income in India if his gross total income received in India exceeds Rs 2.5 lakhs for any given financial year.
• Taxable Income for Non-Resident may include

a) Interest Income on FDR

b) Interest income from NRO account

c) Maturity proceeds from LIC exempt provided the premium paid on the policy does not exceed 10% of the sum assured for policies issued after 1 April 2012 and 20% of sum assured for policies issued before 1 April 2012 – under Section 10(10D). If above conditions are not fulfilled then it is fully taxable.

d) Capital gain from sale of shares in Indian Companies and or from redemption of Mutual Fund units held in India.

Conclusions:-

• It is presumed that Mr. ‘A’ was stayed in F.Y.18-19 less than 182 days and therefore he will be a Non-Resident for F.Y.18-19.
• If A’s taxable Income computed as provided under legal provisions is less than Rs.2.5 lakhs then he will not required to furnish Return of Income.
• If A’s income exceeds Rs.2.5 lakhs then he will required to furnish return of income in Form ITR-2.
• A Non-Resident can file a Return of Income without Aadhaar Card.

Hope the Article helps to resolve some issues.

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