NRI Income Tax Rules & Policies in India, NRI Tax Return

Perfect Guide on NRI Income Tax Rules and Policies in India

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Perfect Guide on NRI Income Tax Rules and Policies in India

As a non-resident Indian have you been grappling with the constant challenge of how various incomes would be taxed in your home country and in India? Are your decisions related to remittances, investments, property purchases and rentals marred at the thought of taxes?

Though tax laws in different countries are difficult to fathom, they aren’t as perplexing as you thought.  Take for instance the income from abroad. The ground rule is that income which is earned outside India by an NRI is not taxed in India.

Similarly, there are a host of other incomes that aren’t taxed in India, but may or may not be touched in the country you are residing in. We present a simple guide for Non-resident Indian to assist them in saving taxes by understanding which income will be exempt and which won’t.

Income exempt in India

Most NRIs have bank accounts in India – either non-resident external accounts or foreign currency non-resident account. The good news is that though Indian residents have to pay tax on their savings bank account interest above Rs. 10,000, NRIs are excused. No taxes are to be paid on the interest arising out of these bank accounts.

You need not worry about paying taxes on income you earn abroad. Also, gains from money sent home to family members or for investments are exempted (taxed at concessional rates under specific scenarios).

Income Taxed in India

Gains – long-term or short term – from investments or sale of assets such as house would be taxed in India. Also, rental income is taxed in India, but a standard deduction of 30% of the rent (less municipal taxes) is available.

If you have inherited assets from Indian parents or relatives then you wouldn’t have to bear taxes when you gain control of these assets. But later, recurring gains such as rental income or income from sale or transfer would be liable to tax.

Exempt in India, Taxed abroad

There are certain conflicts with regards to specific income with regards to tax laws in different countries. As a result, you would have to bear the brunt of tax in your new country. For instance, dividends distributed by Indian companies are exempt in India, but taxed in countries such as US.

Select long-term capital gains from Indian investments are exempt in India, but taxes are applicable as per the rules of the country you now reside in.

Calculating taxes

If you only have capital gain income from shares and securities in India then you would not get the basic exemption limit. Your shares, mutual funds and other assets when sold in India would be taxed just like residents. Equities held for more than a year are exempt only in case of STT paid else it is taxable @ 10%, while non-equity funds have a different taxation structure based on when they are sold. The entire gain made on investments in non-equity fund up to 36 months (12 months if prior to July 10, 2014) are added to the income and taxed as per the bracket. While those redeemed after 36 months are taxed at the rate of 10%. In case of assets other than Shares & securities sold before 36 months then they are taxed as per the regular bracket and if sold after 36 months are taxed at 20%.

Also remember that to avail the benefits of exemption under section 54, 54EC and 54F, and these can be availed only in case you invest the proceeding in India.

Paying taxes

Under most situations taxes would be deducted before making you payments, be it investments or rents, as mandated by the section 195 of the Income Tax Act.

But, if there are additional liabilities then you can pay the taxes online through a seamless process.

Tax filing

Even though you may have to face the tax brunt, it doesn’t merit filing income tax returns unless your income exceeds the threshold limit. If your earning from all sources put together – rent, dividend, capital gains, investment income, etc – shoots beyond Rs. 2.5 Lacs (Rs. 3 Lacs for those between 60 – 80, Rs. 5 Lacs for those above 80 years) for financial year 2014 – 15, then you would have to file a tax return.

When your income exceeds the threshold, you should check whether you can skip filing tax returns through provisions under Chapter (XII-A). Here, if all taxes have been deducted at source for specified income then there is an option wherein an NRI need not file a return.

Also, if this income earned is a result of sale or transfer or regular income from foreign exchange asset then an NRI need not file tax returns.

However, while filing returns in the country you reside in you should declare the Indian Income as you would get tax credit in countries in a Double Taxation Avoidance Agreement (DTAA) with India.

Steps to save taxes

Though one cannot escape tax completely, but s/he can claim deductions by investing in various investment avenues eligible for 80C. However, as an NRI you aren’t permitted to invest in National Saving Certificates (NSC), Senior Citizens Savings Scheme, Post Office Time Deposits or open new PPF accounts or extend them.

Other taxation benefits under home loan, life insurance, pension plan, equity-linked savings schemes of mutual funds are allowed. Tuition fee paid for spouse or children in India too can be claimed for deduction.

Health insurance policies or health check-ups paid for parents or dependants in India too are allowed for deduction under section 80D.

If you aren’t willing to buy another property using the sale amount to save taxes, then long-term capital gains arising due to sale of assets can be invested in tax-saving bonds such as those issued by NHAI or REC. But these are capped at Rs. 50 Lacs. Also, investments into foreign currency bonds are taxed at 20% vis-à-vis the maximum tax rate of 30%. So, you can claim a lower tax rate by investing in these bonds.

H&R Block India strives to blend tax expertise with a strong focus on continually improving the client experience to provide all its clients with an unparalleled value proposition for E filing their Income Tax Returns Online.

Visit hrblock.in for more information or to find your nearest office to find assistance to file taxes.

Neha Joshi
Neha Joshi
Neha Joshi is a Chartered Accountant and an Assistant Manager at H&R Block. She is the Head of Content and is responsible for strategizing the entire content for website, PR and social media. She comes with a rich experience in publishing where she wrote books for various international professional qualifications. She was also a trainer for the subjects she wrote.

166 Comments

  1. ahmed ali says:

    There is confusion about NIIT (net investment interest tax) .. U.S.citizens , living in India,on permanent basis, with all their income from U.S.sources (no foreign income or assets).No relatives or real estate in U.S. Are they exempt from NIIT ?

  2. p lal says:

    for a “person of indian origin” with “canadian nationality” the capital gains accruing out of sale of his “only Residential property” in India though totally exempted if invested in another residential property , what tax credit would accrue to avoid double taxation in Canada ? Would he have to pay full capital gain tax in canada since he availed 100% tax exemption in india.

    • HRBlockIndia HRBlockIndia says:

      Canadian “resident” has to pay tax on worldwide income and will have to pay taxes on any capital gain as well. The gains are not exempt.
      This rule applies only if he is residing in Canada, else it does not.

  3. P Chandrashekar says:

    Dear Sir,

    Please let me know, whether Interest paid on Housing Loan is exempted under Income from House Property and Principal paid is allowed as deduction u/s chapter VI A of the Income tax act, in India

    • HRBlockIndia HRBlockIndia says:

      Yes. These are the allowed deductions. These can be claimed as loss from house property and adjusted against other income.

  4. RASHMIKANT PADH says:

    I require the details OF section 194 DA of Income Tax Act which imposed from 01/10/2014 in which Life Insurance payout is covered under this section.My main query is that NRI are also under this new tax proposal or not? If premium debited from NRI Savings A/c. then what will be the Tax percentage to be paid to IT Department by the NRIs?

    • HRBlockIndia HRBlockIndia says:

      Provisions of Section 194DA will be applicable only in case of a resident policy holder. If policy payment is being made to non-resident policyholder, the provisions of section 195 of the income tax act 1961 will be applicable. Section 195 doesn’t mention any rate at which the TDS is to be deducted by the insurer while making payment.
      The TDS in such case will be deducted at higher of the following rates for non PAN card holders u/s 206AA
      a. The rate of tax in force for such income (i.e. applicable to nature of income) or
      b. At 20%

      In case you are a PAN card holder then TDS will be deducted according to the rate of tax in force for such income.

  5. AC says:

    Sir

    I was staying in USA for 4 years (2003 to 2007) and came back to India 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.

    Best Regards

    • HRBlockIndia HRBlockIndia says:

      Considering the facts of the case and further assuming that you qualify to be a Resident and Ordinarily Resident (R & OR), as per sec. 6 of the act for the F.Y. 2014-15, all your global income will be taxable in India. Further as per the amendment of Finance Act 2014 any unlisted share (including foreign listed share) if sold after holding for a period of 3 years (36 months) or more then capital gain arising on the same post indexation will be taxable @ 20% (plus applicable cess)
      Note:- You will be eligible to claim the benefit of exemption u/s. 54EC & 54F by investing in the specified assets. This means that if you invest the gains from sale in some specified assets then you will not be liable to pay any taxes on capital gains on sale of shares.

      • Ritesh says:

        I am in UAE where there is no tax. I am planning to invest in property or stocks globally(not India). If buy and sell them while I am in UAE and still NRI then don I still need to declare or pay tax in India? Thanks

  6. vijay desai says:

    If an NRI (staying in US having Green Card or being US citizen) wants to buy Life Insurance Policy by paying premiums through his/her NRE account in India,
    (1). would he/she has to pay Tax on premium in US or India?
    (2). Does he/she is required to declare this Insurance policy and premium paid thereof to US tax department?
    (3). Does he/she has to pay any tax on maturity amount deposited by Insurance company to their NRE account on completion of the Policy Term? (In India Insurance Maturity amount is non-Taxable)

    Awaiting your reply.
    Thanks,

    Vijay (19/04/2015)

  7. Saurabh says:

    if person earning in abroad outside india in foreign currency n salary is credited in nre account in india but he doesnot complete his 182 days is that money earned in abroad in foreign currency is liable for tax

    Thanks in advance

    • HRBlockIndia HRBlockIndia says:

      In case you do not stay out of India for less than 182 days then you become a resident in India. Hence any income earned by a resident whether in India or abroad is taxable in India. Hence the salary earned in this case is taxable in India.

      • sudhakar says:

        Sir,
        I am working in south Africa with 60 days on and 21 days off rotation.That 182 days stay applicable in a financial year (continuously or intermittently)
        Here from salary , 17% was deducting as tax.
        At this situation also we need to pay tax in India?Please guide me .
        Thanks

  8. N.S.Mehta says:

    In terms of recent ITR, bank details are required to be furnished. In case of NRI , whether it is mandatory to give bank details held by him in the foreign country where one is currently and not affected by indian Tax laws. similarly for NRE non taxable bank deposits in India
    Thanks

    • HRBlockIndia HRBlockIndia says:

      Dear Mr Narendra,
      Disclosures of bank accounts in foreign countries is not a condition while filing ITR in India. You must disclose all NRE accounts in India in your ITR.

  9. N.S.Mehta says:

    as per the comment sent

  10. N.S.Mehta says:

    For NRIs Is it necessary to give bank details not covered by indian tax laws
    thanks

    • HRBlockIndia HRBlockIndia says:

      Dear Mr Narendra,
      Your question is not clear to us. Can you please clarify?
      For all NRIs who are filing IT returns in India disclosure of all bank accounts in India is required.

  11. Nishi says:

    Hi, as an NRI living in the US and holding a green card. I am salaried on a full time job here and filing taxes in the U.S. as well.
    I hold property, under construction in India & NRO & NRE accounts. No income generated in india other than interst on bank account balance for witch TDS is already decucted.
    When filing taxes in india, do I also have to declare all income & bank acvount details in the USA?

  12. Student says:

    Suppose a person left India 2 yrs back for a project through his employer in India and is likely to return back on completion of project. For the years when his status was NRI, in the absence of any taxable income in India,
    i) can he file ITR & claim deduction for repaying housing loan taken in India for a home in India self occupied by his family and
    ii) carry forward the resulting HP loss to be adjusted against taxable income that shall arise after he returns to India?

    Pls clarify,
    Thank you

  13. Rishi R says:

    I was abroad (Zurich) for a short term assignment ( 110 Days ,rest all days in India) in current FY through my company during which i was paid salary abroad ( No indian salary during this period) and i paid taxes as per country rules there .
    Do i need to include the foreign income while filing my IT return and do i need to pay taxes again .( if no do i need to disclose this anywhere in IT return form , if Yes ; how should i calculate foreign income).

  14. Adwin Anil Saldanha says:

    Dear Sir,
    This is with regard to maturity proceeds from Setubandhan, traditional policy by SBI Life Insurance Company. I had invested Rs. 3 Lac on 26th May 2015. It got matured on 26th May 2015. I had funded this investment from my NRE account. I am residing in Kuwait. Total amount at maturity turns out to be 4.5 lacs. Now they are saying that in case i fail to provide them with Tax Residency certificate from kuwait, they will deduct 30.9% of 4.5 lacs. I am surprised to hear that. If i do not present TRC they can take 30.9% of 1.5 lacs which they are giving and not on my money. They are reluctant to understand the concept. How can I stop them by doing this. Can i get some circular related to this and please help me get out of this trouble. please, thank you

  15. 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

  16. M.VINAYAKA PRABHU says:

    My son is an NRI, and is sending his savings to his NRE account. He has made some NRE fixed deposits out of his savings and its earns interest. Please let me know whether he has to file IT returns if his interest income exceeds the limit prescribed .

    Thanks & regards,

    M.VINAYAKA PRABHU.

    • HRBlockIndia HRBlockIndia says:

      Income tax returns will have to be filed when income exceeds Rs.250,000 in a year i.e. from 1st April to 31st March. If he files his return for the year then he can even claim his refunds for TDS deducted if any, since TDS is deducted at the highest slab rates for NRIs.

  17. S. J. says:

    Dear Sir / Madam,

    I am an NRI residing in the US. I have been earning my annual wages and paying income taxes only in the US. I recently made an investment on property in India by taking a loan at a bank in India. Can I claim returns on my income taxes in the US for the interest paid on my home loan in India and on the property taxes paid in India? If so, could you please elaborate.

    • HRBlockIndia HRBlockIndia says:

      Yes, you can claim the home loan interest and property taxes as Itemized deductions provided they are for a main home or a second home. If the house is under construction, you can claim the interest only for 24 months until construction is completed. It the property is rented out, the interest and taxes can be deducted against the rental income.

  18. Larry Agrawal says:

    As a NRI, I sold a residential property that I had bought in 2005, when I was resident in India. I have booked capital gains against same and accordinly invested gains in NHAI bonds. All transactions have happened in INR and no foriegn exchange transactions were incurred.
    Now, I need to file my Income Tax Returns on ITR-2. My question- ” In ITR-2, what category should I use to indicate capital gains in section B-1 of the ITR-2 form or B-7 of the ITR-2 form
    Similarly, I have long term capital gains (losses rather) from sale of equity & MF with all transactions done from NRO account. Under which category (resident or non resident) should I reflect in ITR

  19. Sach Anand says:

    Hi Sir
    I am NRI living in UK, now recently got British citizenship and OCI. I would like to return and settle in India with British Citizenship. I would like to know if my investments in Indian stocks/mutual funds for long term, would be taxed or will they be tax free for long term investments just like Indian citizens do.
    Thanks

  20. Badri says:

    Dear Sir,
    I am a NRI and have two Resident Saving bank accounts and a Resident Demat account. The income is less than INR 1 lac a year. Should I file my ITR. Please advise.

    Rgds
    Badri

    • HRBlockIndia HRBlockIndia says:

      You need to file taxes in India only if your income is more than Rs 250,000 and hence if your income is only Rs 100,000 per year then you need not file your returns or pay taxes in India.

  21. V Sharma says:

    What about bank interest income to an nri.
    If the same is Rs 300000 PA what will be the tax liability
    How much tds will be deducted by the the Bank
    How the bank can be persuaded to not to deduct tds

    • HRBlockIndia HRBlockIndia says:

      If you earn income of more than Rs250,000 then you are liable to pay taxes and hence you have to pay taxes at the slab rate applicable to you. In this case you fall under the tax slab chargeable to tax @10%. Hence the total tax payable for you (considering that 300,000 is the only income you earn in India)is (250,000 – 300,000)x10% = Rs. 5,000.
      When it comes to TDS, NRIs are charged at the highest slab rates and hence banks will deduct TDS on your interest @30.9%. However this amount can be claimed as a refund on filing your return of income in India.

  22. Yogesh Shah says:

    I’m Canadian citizen with OCI (Overseas Citizen of India) card earning interest income in India from investments made prior to immigratng to Canada. What is tax treatment of this income in India & Canada ? I’m filing tax returns in Canada & India from income earned in respective country.

    • HRBlockIndia HRBlockIndia says:

      Hello Yogesh,
      The interest income earned from investments in India will be charged to tax in India if it exceeds the threshold limit of Rs.250,000 a year.
      We deal only in US and India taxation and not in Canada taxes. Hence we will not be able to guide you in taxation of these in Canada.

      • Yogesh Shah says:

        Thank you for your prompot response. Can you suggest someone who could throw light on the Canadian aspect ? I would appreciate this very much.

        Yogesh

  23. Shailesh says:

    I am a NRI and online invested in Indian equities through my NRI PIS A/c. Recently I sold the Reliance shares and the HDFC Securities/Bank deducted short-term capital gain tax on the profit.
    1. What will happen if tomorrow I make a short term loss in the equity?
    2. Can I claim back the excess tax deduction? Please Note: I had not filed my returns after I became NRI.
    Kindly advice. Thanks. Shailesh.

  24. Kamlesh says:

    I am an NRI since last 20 years, last year I have invested in one company from my NRE a/c. the profit will be come in this year could be 3 lac to 3.5 lac which will be deposited to my NRO a/c. ( they said profit cannot be deposit in NRE a/c.). I would like to know how much income tax I have to pay. this is the only income I have in India. my family are in India and my 2 kids studying in school.
    Please advice me.
    Thanks
    Kamlesh

    • HRBlockIndia HRBlockIndia says:

      Hi Kamlesh,

      You have earned income more than the threshold limit of Rs250,000 and hence it will be taxable. You will also have to file your return of income and pay taxes due. The income tax payable would be determined only after claiming proper deductions from this income an then applying the tax rate applicable to the net income from this investment. A qualified tax advisor can guide you in this matter.

  25. My son was in UK. from 2006 to 2011, & there after he has moved to kingdom of Bahrain. During his stay in U.K. he had purchased a house on loan in U.K. for which he is still paying installments. He was paying income tax in U.K. as per rules. At present he is in Bahrain. so , he has not to pay any tax at present as per that country rule.
    So, from 2006 to 2015 continuing , his status is NRI.
    My question is ,
    As per the present new stipulation in India, what should do for his asset in U.K. ?

    • HRBlockIndia HRBlockIndia says:

      The taxation rules in UK are different from India. Your son is an NRI and the property is out of India and hence it will not be taxed in any manner in India. However if he files his taxes in India then he will have to disclose his foreign assets in his return of income.

  26. shan says:

    Wl tds be applicable for payment by an Indian person for purchase of non resident shares…while making payment wl the Indian person wl deduct n pay…if yes why???

  27. sushma says:

    i hyave invested in property in india mwhile i am living abroad from last 8 years. will i have to fill the income tax returns

    • HRBlockIndia HRBlockIndia says:

      You will have to file taxes in India only if you earn income from this investment exceeding Rs250,000 in a year. Alternatively you can also file your taxes in case you receive some interest income from India that is charged to tax at the maximum marginal rates of 30%. You may claim refunds of your taxes by filing your taxes in India.

  28. S Ray says:

    I was employed with a company in Singapore from Jan 14 till Jan 15. As part of monthly salary, taxes relevant to my income were deducted each month and will be paid by my employer accordingly to Singapore government.

    I have a NRE account here and as per bank norms I need to redesignate my NRE account to residential account upon my return to India permanently. Now, I am employed in Mumbai from March 10. Problem is I have not yet transferred my foreign income to NRE account because of current lower exchange rates and would like to gradually do so in coming months when the exchange rates improve. Can I continue to maintain my NRE account ?

    My next question is whether I can keep my income in foreign bank for future transfer of money. If yes, by which month max. do I need to transfer to avoid taxation in India. Since, I was a NRI for Financial Year 2014-2015 ( stayed in India < 60 days ), upto how many months/years do I retain the NRI status.

  29. moto says:

    Foreign Income reporting guidelines for foreigners resident in India.

    This is a question on Indian ITR filing requirements for OCI persons who have moved back and become resident of India past their RNOR status.

    Do they need to report rental income from their foreign residence in their Indian ITR? If yes, can they exclude mortgage interest and property tax paid to maintain the property?

  30. Jasbinder says:

    Hi,

    I was working in India and having salary income when I was in India, from Apr14 to Jun 14 (3 months) and accordingly TDS was deducted by Co. Then I shifted to foreign and earning salary income and became NRI status. Because this salary is exempt no TDS was deducted.
    Now when I file return for Apr14 to Jun15 salary do I have to disclose the foreign salary also ?

  31. Santa Kumar Chattri says:

    Which section NRI (Totally US Income) file income is totally exmpted ………………???

  32. rishi says:

    I am nri and given money to my wife from my nre account who is residing in india.
    My wife has short term capital gains investing in shares to which stt was paid.

    How do i file my returns in india.

  33. j says:

    Can I ask questions without sharing my real name?

  34. j says:

    ok. thank you

  35. jj says:

    I am a GC holder and resident of the USA. I earn a salary in the USA and am in the 25% tax bracket. If in addition to being a resident of the USA, I were to become a India resident by staying longer in India than the permissible period in India to remain a non resident, what would be my India income tax bracket?

    As I will first pay the tax in the USA as the source of income originates in USA how much will I pay in additional tax as my USA income will place me in India in a higher tax bracket?

    How will the Double Taxation Avoidance Treaty between the USA and India operate?

    Is there anything in addition that a person like me who could be a resident in two countries have to anticipate when filing taxes in both countries?

  36. Ajit Kelkar says:

    Advice Please,

    I am senior citizen permanent resident of Australia thinking of returning back to India.
    Both my children are citizens of Australia.
    I have invested heavily into Mutual funds from my NRE a/c for long term.
    After my demise how will my wealth be transferred to my children my only Kith and Kin ? Do they need to open NRE a/c now itself ?
    I need to make a will yes ………..what else do I need to do.?
    Please advice
    Thank you

  37. Gi says:

    Hi,

    I got Canadian permanent residence in May2014 (not citizenship). In FY2014-15 i was employed in India for about 50 days before i got the canadian residence. After i got the new residence i was still employed in india itself for another 6 months till i got a new job under a Canada employer & i moved there (not deputed by my old indian employer).

    Because i am working in Canada as a local resident now, do i still have to pay tax from my new job from Dec14-MArch15 as global income when filing indian ITR ??? I am already taxed in canada from Dec14 to March15 (the tax year in canada is from Jan to December).
    If i do have to declare, can i get tax credit in india, for the 4 months i’ll be paying tax in Canada ????
    To get tax credit, do i have to be earning in the same tax-slab in both countries???
    For tax purposes have i resided, in india for 182 days as an indian resident (since my residence status changed before i completed 182 days in india) ???

  38. Yuvaraj says:

    Dear Sir, I am a NRI. I got a Resident savings account in SBI which i have opened while i was in India. Last year June 2014 I have remitted Rs. 1.5 Lakhs from abroad and made a Fixed Deposit of that Rs. 1.5 Lakhs in my savings account at the Interest rate of 5.5% per annum for which i got interest of Rs. 6987 and recently I came to know about Tax Deducted at Source (TDS), when I checked in my Sbi Acc income tax certificate for the financial year April 2014 – March 2015, bank deducted and paid interest of Rs.576.00 for the FD interest. I Don’t know what to do to get refund.
    Please help me in the below queries:
    1) What should I do now to get refund of that income tax paid by bank?
    2) As a NRI can I have Fixed Deposit in my Normal Savings Account?
    3) Can I Submit Form 15G to avoid Tax Deducted at Source for the financial year April 2015 – March 2016?
    4) Let say right now I have FD of Rs. 5 Lakhs at the Interest rate of 7.75% and FD interest income will be Rs.39890 for the financial year 2015-2016. I don’t have any income in India other than this FD interest income. May I still need to pay any income tax for FD interest income for next year? If so, then how much will be income tax?
    Thanks in advance for replying.

  39. Sumit Sethi says:

    Have a small query about which I’m getting mixed opinions. Hence requesting your expert help on the issue.
    I am an Indian national.
    I have a resident Visa of UAE and am on training and troubleshooting visits about 60-90 days a year to the UAE. Fot that i have a fixed earning in Dhirams per month being paid in UAE itself.
    I HAVE NEVER TRANSFERRED OR BROUGHT BACK THIS MONEY TO INDIA AND NEVER INTEND TO DO SO EITHER.
    I use that earning for my expenditure in the UAE itself.
    So… Am i liable to declare and pay tax in India on that amount which i am earning there and never intend to bring back here?
    I Shall be very grateful for for reply.
    Thanks.

  40. Hitesh Khatri says:

    Dear Sir,

    I am doing service in Dubai. My company sent all my salary in my Saving bank account of SBI bank. They already sent more than 20 lakh this year. So there any difficulty that i will face or its ok ? Please advice.

  41. Pankaj says:

    Hi Team HRBlock,

    I am Indian Resident, going US during Jan, next year.

    So far I have invested around 1 Cr. in equity. I am looking to keep it invested for next 3-4 year till I come back from US.

    Do any realized/notional LTCG on Indian equities are taxable in US under “Global Income” ?

    Pankaj

  42. Vijay Pandit says:

    Hello HRBlock,

    I own a property back in India. I am jointly registered for this property with my mother (residing in India). My parents recently rented out the property in India. But, I am not receiving any proceeds from the rent. All the rent goes to my father’s account, for which he files Indian taxes.

    Is there any need for me to declare this in my annual US taxes ?

    Thanks,
    Vijay

  43. satya prakash says:

    I am using a ptc (paid to click) site to earn money and the earnings are in dollar .Also sometime I use my earnings to purchase services on the site itself.(I live in india)

    Then I use paypal to credit my earning in my bank account in rupees .

    Does I have to pay tax . If yes then does i have to pay tax on my purchases also or only on the amount I received in my bank account .

    Thnks in advance

  44. Manish says:

    Hi Sir,
    I was living in HONG KONG From 2007 to 2015. During that period I have purchased two residential property, 70% mortgaged by bank.
    Now I have shifted back to india and I am indian redidence.
    Can you suggest me how I should file my IT return.

  45. Nick says:

    what should we keep in mind if we want to invest in India for any startup(appx $40k) from USA? can you guide on tax laws?

  46. RAJEEV ROY says:

    I GOT A JOB IN OMAN WITH SALARY 1LAKH20THOUSAND INR. WILL THIS BE TAXABLE IF I TRANSFER TO INDIA. OR ANY OTHER TAX RULES PLEASE SPECIFY

  47. Prasanna Kumar says:

    I sold my stocks in Jan to March timeframe in US this year. India’s financial year is from April 1st last year to March 31st this year. Since the capital gains come under this year for India, do I have to pay taxes in India first now on these capital gains? Since the capital gains are in US, wouldn’t I have to pay taxes in US next year? How am I not going to be double taxed in this case? Thanks.

  48. Chetan says:

    Sir I want to know that is income credited by abroad based company directly in nre a/c in India is exempted or not when it is earned abroad ? And if exempted income shown in itr is less then actual credited in a/c but it is not verified by nri yet . Is it require to revise it ?please please reply. Thanks

  49. navdeep bhatia says:

    ,seller in our case is carrying USA Passport
    He is claiming to have spent more than 365 days in india in last four years
    and this year residing more than 182 days in india

    He is sharing his last two years income tax return with resident status
    and his pan card
    He is saying he should be treated as an resident indian and is not covered under section 195
    How I can safeguard myself
    Sir please revert as it is very important for us as we have already given the biana

  50. kewal kohli says:

    my son is in canada and is earning his salary for which he is paying taxes as applicable. if he has saving and FD accounts in India will his interest income if less than total Rs. 250000 be taxed in India or Canada.

    can he give his form 15G to avoid paying of TDS

    thanks

    kewal kohli

  51. Krishnakant K.Patel says:

    I staid in usa with the status of dependent of my wife and my wife doing study at abroad and i earned some money from usa and i had transfer it to my indian bank account so such amount [ i and my wife both are Indian citizen ] so such amount is taxable in India? i came from usa on February 2015 so such amount is taxable or not ? in india ? Please reply me as early as possible.
    thanks
    KKPatel

  52. Ram Viswamitra says:

    Sir, I am an NRI and a Permanent Resident in USA. Earlier I was working in India for which I get a pension of about RS 300K from India. While filing my tax returns in USA, I have included this. In India, my income other than the Pension is quite small (about 50K) in a year. Do I have to file my returns in India. And if I do, to get refund of any TDS, do I need to show the pension or can I omit it. Thanks in advance.
    Pension

  53. Krishna says:

    Hi how to consider 182 days, how to prove that.

    I worked in India last financial year 170 days,till September 4th and left to Malaysia on 6th September.

    Please give some inputs for this case.

  54. Prakash says:

    Hello,

    My son went to USA in 2012 for B.S. under F1 Visa. He then did his M.S. from there and from 2016 will do PhD there.

    India details:
    – Has a PAN
    – Investments in his name are in Mutual Fund (all Growth option), PPF and one share in demat.
    – Has a normal savings bank jointly with myself and my wife
    – Has a commercial office (bought in 2009) jointly with my wife

    He was not filing tax returns here as the income did not fall under Taxable slab (below Rs 250,000). I then received a notice from I.T. asking why he is not filing returns, after which my CA advised that as my son is called NRI (stayed more than 182 days out of India) he is supposed to file returns here irrespective of his income slab. So I filed returns (including past year returns).

    USA details:
    – has two bank accounts (checking accounts – so no interest earned)
    – had a small income as teaching assistant in 2014. So he filed Tax return in USA in 2014 on his own but did not show his exempt income of India in the return there, as he was not aware.
    – is now pursuing PhD from 2016 and will get stipend.

    Query:
    – Should I discontinue filing tax returns in India since your article says it is not necessary to file return here if income below threshold ?
    – Should I close normal savings bank account and open NRE/NRO account and if so, which is better ?
    – Will I have to close (means not renew) his PPF account here ?
    – Is Indian tax free income (like Long term capital gain, PPF interest, dividend, savings account interest under Rs 10,000 and interest on tax free bonds) taxable in USA so advisable to liquidate all his investments here ?
    – does he have to show exempt Indian income in USA tax return ? If so, should he file revised return for 2014 there showing Exempt Income in India ?

    Looking forward to your valuable response.

    Thanking you in anticipation.

  55. P N Mudgal says:

    Worked Jan,2012 to Sept 2015 in China. After returning back to India new job was joined in Oct,2015. PF accumulation was withdrawn and credited in HSBC account which was transferred in saving bank account in India in November,2015. Whether complete accumulation is taxable as income in India for FY 2015-16 or only employer’s contribution and interest is taxable of the year in question leaving other period as NRI ?

  56. P N Mudgal says:

    I shall be thankful for your sincere and expert advise.

  57. Pramodh says:

    I lived in the US for about 9 years and planning to settle down in India. I am not a US Citizen or a Permanent Resident.

    If I continue trading stocks (options, equity) in the US market, which is allowed now for an Indian Resident, how is the income taxed in India? For equities held less than a year, short term capital gains are taxed at 20%, what about Options which is also held typically for a brief period (week or a month)?

  58. preeti says:

    Hello Sir,

    I am in doubt of my Please clarify.

    I am working with Indian software company,I got Deputed for 2.5 month(May 2014 to Aug 2014) in Saudi Arabia (DAMMAM) .I used to received the salary Saudi account and since it is TAX Free county they have not deducted any Tax.
    when i came back to India i didn’t fill TAX for that amount last year because lots my colleague they never paid since it was earned outside India and transferred to their account .Now i got know my CA i have to pay tax for that amount also could you Please help and guide.

  59. Shyamveer Singh says:

    I have left my India job in Nov 15 and recently moved to Cambodia (Working as an IT Consultant) and Cambodia doesn’t have double taxation treaty with India.
    Here is my details:
    1) I am paying Tax (TDS) on my Cambodian Income in Cambodia.
    2) I have paid Tax(TDS) on my Indian Income in India while working there.

    Please advise,
    Do I have to pay tax on my Cambodian Income in India (Though I have spent more than 283 days in India in FYI 15-16) while filling ITR in July ?

  60. Sandeep says:

    I am currently holding RNOR (resident but not ordinary) status and wanted to sell property, how much TDS a buyer has to deduct? Is it 1% or 20%?

  61. Shain says:

    Hi I’m Shain working in Taiwan, But last two year as per project work in India more than 182 days. My salaried paid in Taiwan and taxes paid in Taiwan( 18% because live in Taiwan less than 182 days). Hope this project will continue next two three year more, I’m eligible for Indian taxes system ?? I dont have source of Income in India but might few bank interest !!

    Can you please advise

  62. Raju says:

    I am NRI and hold two residential properties. Can I treat one property as self occupied and another one’s as deemed to be letout for tax purposes. Please note that both the properties not used by any body and never let out.

  63. JITESH TELISARA says:

    Hi,
    When NRI hold FCNR Deposit the same is Tax Free but, When the NRI become the Resident In India his global Income Become Taxable in India Including Interest earned in FCNR deposit.
    My question is If NRI has taken the forward rate against the FCNR deposit how should we calculate the Interest On FCNR deposit??
    Should we use the Forward rate multiply by interest or RBI rate multiply Interest as on 31 March??
    Is there will be any Speculation gain on Forward Contract taken on FCNR Deposit???

  64. Devansh Vasani says:

    Hi,
    If an Indian student, studying in UK has a bank account in the UK (with signing authority) and is a working partner of a firm registered in India (getting remuneration from firm), is he liabile to file ROI in India and disclose the UK bank account although his GTI is less than 2,50,000/- ?

    Many thanks in advance.

    Devansh

  65. Krishna says:

    An NRI bought housing property by availing housing loan from one of the public sector banks in India. The down payment was made in 2012 and registration of property happened in 2013. We came to know that TDS is applicable on purchase price of the property. Around Rs.10 lakhs is on hold due to non completion of certain work.

    Since, the buyer did not deduct while making the down payment and bank also while making the disbursements to builder, how do we go about it?

    This question is asked from Buyer’s angle.

  66. eliza says:

    My Brother is an NRI in UK he has his Fixed Deposit in India for which he gives Form 15 G to avoid TDS is it acceptable.He does not have an nri account he holds his normal savings account. Further he transfers funds to his account here in India for household works Is it going to be taxed.Do you think he needs to file his returns.
    Advice pls

    • HRBlockIndia HRBlockIndia says:

      Hi eliza,
      In your brother’s case, Form 15G is not applicable. His fixed deposit will not be taxable in U.K. It is advisable for him to have an NRE account as interest on it is not taxable. To get withheld refund, he needs to file his income tax return.

  67. My son is NRI and he has PAN card , He wish to file IT return CA is telling that he has to change the status of PAN Card from indian citizen to NRI, he is still indian but staying abroad.

    • HRBlockIndia HRBlockIndia says:

      Dear Sir,
      Citizenship and residential status, both are different things. Since your son is staying abroad, his residential status will become NRI, although he remains to be an Indian citizen.

  68. Swarnesh says:

    Dear Sir
    I am now resident of india but not RNOR ie I am resident now. I had received salary in usa from my employer and tax was deducted at source. The tax deducted is on W2 (like form 16) but I do not have the trc from usa. Can you or hrblock india can help me get trc from usa or I will have to pay tax in india on usa salary also (then it will be very high tax in india, on amount on which I already paid tax in usa). Please suggest/help if hr block can help.

  69. Sandeep says:

    Dear Sir,
    Might be a silly question – For the year 2015-16, I was in India for around 130 days and since then working in the UK.
    There is a tax benefit on Principal and Interest loan repayment on home loan when I was getting income in India. To pay the home loan while I am in UK, I transfer the money overseas from UK acccount to Indian Home loan account. In this case, I am not getting any tax benefit in UK, is this correct? Or is there any way to claim it.

  70. j k Chouhan says:

    I am an NRI and have earned interest in NRE account in India ,which is not taxable ,but do I have to show it in ITR.
    If so in which column of ITR -1,it has to be shown,
    Secondly since it is not taxable ,how to claim exemption in ITR-1.

  71. Kirti says:

    Hi, I am an NRI but my spouse and kid stay in India. We have a self occupied property and the other one is rented. Both the properties are in joint name of myself and spouse.
    The rented property rent is paid to my wife’s account.
    While filing return, can we mention that this rent has to be shared by both of us or do we need to receive the rent divided equally in our separate accounts for that?
    Your guidance for the same shall be highly appreciated.

  72. Maulik says:

    Hi HRBlock,

    I’m in the USA from Nov’15 till date and I was in India during last Financial Year. Now my question is, since I’m my tax status is resident of India but staying outside of India after Nov’15. Can I still get tax benefits for HRA and House Loan in India for entire financial year or I can only take till the duration in which I was in India? Please. Awaiting your reply.

    Thanks.

  73. urvish says:

    I am NRI for FY 2015-2016.

    Do I have to show income details from my salary outside india in excel sheet “FSI” of ITR2 excel file of my income tax returns?

  74. Amit kumar pandey says:

    I am an NRI currently residing in Middle east . My salary received is totally tax free and there is no tax deduction on my salary by my employer. Also my employer company is from outside of India .
    In above situation how my Employer company will issue my Form 16

    Is it required to file my income tax return ?

  75. AMAL says:

    I am an NRI. My income is derived from NRE deposits only and is above 2.5 lakhs. Interest on NRE deposits is exempt. When I file my returns

    – which form should I use?
    – Do I need to disclose my NRE interest income under Gross Total Income even though it is not taxable?

    Thanks

  76. sonal says:

    Thanks for Sharing a Such a Useful information.

  77. M A Shaikh says:

    Dear sir
    I earned interest on bank FDs for during the year 15-16 Rs.1,20,000/- No other income. I have submitted FORM 15 G so no TDS deduction was made by bank.
    Do I have to file return for the assesement year 16-17 ? Please clarify.. Thanks.

  78. Unni says:

    Thanks for providing such nice answers!

    One question. I’m filing the income tax return for financial year 2015-2016 now. I see the new sections FSI and TR which was not there in ITR2. So question is related to this.

    I am working in Germany, getting my salary there and paying my income tax for my salary there. My resident status is NRI. Everything is simple. But it is not clearly mentioned in the income tax website if I have to compulsorily fill the FSI and TR sections. In terms of the section FA it is clearly that only the resident Indians need to fill this. My salary is not double-taxed in India and I do not want to claim any refund on this regard. So question is can I keep this unfilled in my return?

  79. Mel says:

    I’ve understood from your article that NRI’s don’t need to file pay taxes on NRE A/C interests. However there is a field in ITR1 about exempted income. Should I fill in my NRE interest here?
    Or should I fill the entire NRI remittances?

    Also, should I list out all my NRE accounts in the bank accounts section?

    Thanks

  80. Abhishek says:

    If an NRI (staying in US having Green Card or being US citizen) wants to buy Life Insurance Policy by paying premiums through his/her NRO account in India,
    (1). would he/she has to pay Tax on premium in US or India?
    (2). Does he/she is required to declare this Insurance policy and premium paid thereof to US tax department?
    (3). Does he/she has to pay any tax on maturity amount deposited by Insurance company to their NRO account on completion of the Policy Term? (In India Insurance Maturity amount is non-Taxable)

    Awaiting your reply.
    Thanks,

  81. Sanjay says:

    What are the tax saving options under Sec 80 c for a US citizen who is a NRI? PPF, 5 year tax saving FD are not permitted.

  82. Kaushik says:

    Dear Sir,
    I am an Indian but currently staying in Dubai for job purpose. My wife is also staying with me in Dubai as housewife. She has some shares in her DEMAT account and earns approximately INR 30000 per year through short term capital gains by buying and selling shares. I have the following queries.

    a) When we used to stay in India as a permanent resident, does she require to pay tax on short term capital gains ? Please note that she had no other income than this INR 30,000 per year.

    b) Now as we used to stay in Dubai, does she require to pay tax on short term capital gains ? Please note that she had no other income than this INR 30,000 per year.

    Regards

  83. gopal says:

    is refund is apply for NRE A/C from income tax department in respect of ITR 1 if not then what is the option for refund ? please give me answer for this …. with link..

  84. pintu kumar says:

    sir return fille is Mandatory for nri or not mandatory?

  85. Murad Shaikh says:

    Does an NRI need to disclose NRE funds while filing income tax return? & is it mandatory to convert savings a/c to nro a/c??

  86. Deepak Rajpal says:

    Dear sir

    I am a seaman, serving in Hongkong based ship management company for approx more than 182 days. Ships normally trading in Foreign waters. I am maintaining NRI status & NRE A/c in India. Basically, I am staying in India only for rest of the time.

    My question is- If, my earning through NRE FD interest & mutual fund appreciation is more than 2.5 LPA, whether, I have to pay tax or not.

    If, I planned to quit Shipping & become a normal citizen, How should I square up my NRE A/C & MF to save as much as possible.

    Deepak

  87. Soum says:

    hello,

    I’m working for an IT company in India who has sent me ( Temporary transfer with local contract) to EU for 2 yrs ( from Dec 2015) , Now my question is I’ll be finishing my two year tenure in dec 2017 and will return back to India, so will I’ll be treated as tax resident for india in 2017 ?and I need to pay tax in for entire 2017 in india ? as i saw the below rule and is 180 days rule is applicable for me ?

    I came to know below statement in tax guide, is that applicable for me or the 60 days rule will be applicable for me when I’ll return back to India.

    You are considered an Indian resident for a financial year:
    •when you are in India for at least 6 months (182 days to be exact) during the financial year
    •you are in India for 2 months (60 days) for the year in the previous year AND have lived for one whole year (365 days) in the last four years
    If you are an Indian Citizen working abroad or a member of a crew on an Indian ship only the first condition is available to you – which means you are a resident when you spend atleast 182 days in India. The same is applicable to a PIO who is on a visit to India. The second condition is not applicable to these individuals.

    regards
    Soum

  88. K V Subba Rao says:

    My son obtained Home Loan from SBI. He intends to let out the property soon. He is currently residing in Australia and Permanent Resident

    It is legally permissible to set off Loss from House Property in India against salary for tax purpose in Australia

    Issue now is about Withholding Tax (TDS) before paying Home Loan Interest to SBI. Australian law mandates TDS before paying Interest to Non-Resident (SBI).

    How can a borrower affect TDS. According to our common knowledge, there may be some provision exempting TDS for Interest paid to Bank .

    Please enlighten us on the above

  89. Shiv shankar says:

    Hiii

    i was in Singapore in 2010 to 2013 as a salaried employee in one of company.
    I have almost 7500$ in my Singapore saving account now in 2014 i am sifted in India permanently my question is can i transfer my money in my Indian saving account it is taxable or not
    if it is taxable than in witch income tax under section please help me.

    • HRBlockIndia HRBlockIndia says:

      Dear Shiv,
      It depends on certain factors.
      If that amount was earned when you were NR in India then it will have no tax impact. However, any significant interest earned on the balance after becoming Resident should have been offered for tax in India.

  90. Sujeet says:

    Hello sir I would like to ask you Iam not working and I need urgent help so If we get a big amount from abroad (Europe) from a friend so I have to file ITR ?

    • HRBlockIndia HRBlockIndia says:

      Depends on the nature of receipt?

      Dear Sujeet,
      If it is a loan for business then it will be treated as such in Balance Sheet of the Business.

      But if it is a gift from friend then it will be treated as a taxable gift and needs to be reported in your return and you may also have to pay taxes on the same.

  91. vgarg says:

    Hi Sir,
    I have been staying in USA for 3 years (2013 to 2016) and wish to return to India in 2017 for good. During my stay in USA I have invested in Indian stock market, IPOs & mutual funds with growth plans. I have been holding the shares & MF since then. Now if I were to sell the shares in Indian stock market in 2017 when I will be a resident indian for tax purpose(2017), am I liable for any tax on long term capital gains in USA for my investments done in India?
    Assuming the long term investments were done from my Income in USA between 2013-2016 during my stay in US ( tax resident in US).
    Also how with Indian tax work on the long term investments (greater than 1 year)
    Kindly clarify.

  92. Sujeet says:

    Hello sir yes it’s gift so please suggest me what I have to do or in future I will b in trouble ? but the problem is I never file RTI because of very low income .

  93. Vij says:

    DO NRIs have to disclose the ownership of a Foreign incorporated LLC in thier tax returns in India? This company is based abroad and has no business/no branch/no employee/ no connection etc with India. The only connection is that the founder and owner is an Indian with NRI status.

  94. Chander says:

    Dear Sir,

    I have received an email from income tax department (DONOTREPLY@incometaxindiaefiling.gov.in) to file undisclosed income under IDS 2016.

    Do I have to take any action pertaining to the following:

    1) My tax status is NRI (employed in Bahrain)

    2) My investments, commencing April 2016 in MFs have been @ Rs. 3.20 lakhs per month (exceeding the Rs. 2.0 lakh annual limit per ITax rules)

    3) However, my MF investments are not from any undisclosed sources but are from my overseas salary earnings, remitted to my NRI account in India, transferred to my NRO account and then invested in respective MFs through a MF advisory.

    Under the circumstances explained above, am I required to take any action.

    Awaiting your favourable and early response so I can catch up with the IDS deadline of midnight 30 September in case I have to file a declaration per your advice.

    Best regards,

    • HRBlockIndia HRBlockIndia says:

      Dear Chander,

      Considering the fact that you are NRI and you have invested in MFs out of your earning outside India then you need not have to take any action.

      Just ensure that you report all your Indian income in your yearly returns.

      • Chander says:

        Dear Sir,

        Grateful thanks for your extremely quick advice. I will take care to report all my Indian income in my ITR, though at this time I have zero Indian income.

        Best regards

  95. Arumugam says:

    Dear sir, Thanks for helping detail, I was working in abroad from jun 2003 to jun 2014. So I am eligible for NOR( not an ordinary resident ) for two years ,2015-16 and 16-17. Is it correct ?

    AY 2015-16,I was working till May 2014 and did not pay tax in overseas for AY 14-15 , Do I need to pay tax in India for the same for overseas salary ?,salary is received to account in overseas only and transferred to India NRE account by me.

    At the same year I have received salary in india from Sep14 ,so do I need to pay for both salary incomes overseas and India income ? Or only for Salary received in India ?

    Tax is free on interest received for NRE FD for RNOR for two years as well ?. Or it is taxable?

    I sold property in overseas and settled PF in my overseas account in AY 14-15, are they taxable in India?

    Please clarify.

  96. Mahima says:

    Hello

    I need guidance. I am on an assignment in a foreign location but salary is paid in India. Can i claim HRA benefit for rent paid for the accommodation in foreign location?

  97. Mahima says:

    Hello

    I need guidance. I am on an assignment in a foreign location but salary is paid in India. Can claiming HRA benefit for rent paid for the accommodation in foreign location permissible as per laws?

  98. Sathish Kumar says:

    Hi sir,
    My brother is working in Qatar, sending his salary through his Indian Bank account. Also he has taken some personal loan there, that amount also sent to India for clearing debts. All transactions has been done through bank account only.
    My question is, now he wants clear the loan which was taken from Qatar. Shall I send Indian money to his Qatar bank account to clear the loan? He has not filed any IT returns in India.

  99. Shibu says:

    Dear Sir,

    I am a NRI residing in Kuwait. Now constructing a house in India around 40 Lakhs, through Contractor. I am giving NRI A/c. cheque (2,5, 6 etc) to the contractor monthly for a 12 months contract. But now a days the contractor says it is difficult to clear the cheques, the bank is asking source of the Income and they will cut Tax 30% from his A/c. Is it true. I paid around 20 lakhs through NRI A/c. and the construction is half way. Please guide me.

  100. Murad says:

    Hi,

    I was an NRI and have returned to India for good. My question is, do I need file income tax on my nri income which I earned when I was holding NRI status.
    Note: I am almost about to complete 2 yrs staying in India & I have not income source generating in India.

  101. ROJU says:

    I am NRI and plan to sell my land to close my housing loan of Rs.10,00,000/- by old currency so there will be tax or penalty for this transaction.

  102. vivek says:

    Dear Sir,
    I stay in middleeast as NRI for 9 years and have been filing my returns in India due to income from NRO deposits and other capital gains.
    My query is ..since i am planning to return back to settle down in india in the month of june-july, will i be filing my returns for particular year as resident or non resident?
    Also, will the money as income remitted /transferred in NRE account from april till june-july be taxed , or will it be considered as NRI income ?

    thank you

  103. Jatin Shah says:

    Dear Sir,
    I am NRI working in Saudi Arabia. I have my full family with me in Saudi as my dependents. There are some deposits of Rs. 8 Lacs in two banks HDFC and ICICI on My wife name from the income generated while she was working in India and from dividends, house rent, FD interest. She is not working in Saudi Arabia. Her total income from all of this is less than 2 Lacs.

    1) Is it obligatory to file IT return in this case?

    2) She has submitted 15 G forms, So TDS is nil. Does she need any rectification in 15 G forms?

  104. Azim says:

    As a New Devlopment with RBI – I NRO account can open Demat account without PIS same like Saving account.
    What is Pro and Cons of this. like with PIS , if my status will change from NRI to resident i have to sale my all share that i have that time.
    NRO account can be change in Saving account and i can continue. Brokerage is low as resident. No need of PIS.
    Please clarify Pro and Cons if i go with NRO Demat account what is withholding tax is associate with NRO account Demat account calculated
    for long term investment like more than 5 years.

  105. Manu says:

    Hello Sir,
    I was working in India as a central government employee till April 2016 and having salary income. As usual, my office was deducting TDS from my monthly salary for last 5 years and I have paid Tax and filed IT returns also. Then I resigned and shifted to foreign and earning salary income from there (From May 2016 to till date).

    1) I think I am an NRI, as I am at foreign country for last 9 months and continuing. Is there any official formality to declare this?

    When I was working as a government employee in India in this financial year 2016, TDS was deducted by the office for 2 months (March and April 2016 – Total Rs. 5000+150) from my salary. Now, I don’t have any income in/from India and two months’ salary was just around Rs 80,000 (below the threshold 2.5 lakhs). So, that amount earned in India and other salaries earned from outside India are not taxable. Right?
    2) What should I do now to get refund of the income tax paid in excess by my Indian Office from my salaries (Rs. 5150)? I resigned from that job and an NRI now.

    3) If the solution is to file the income tax for the current fiscal year, do I have to disclose the foreign salary received also? If yes, how?

    4) For filing IT returns this year, do I need to receive the form 16 from my Indian office?

    4) As I am continuing as NRI and no income from India, should I discontinue filing tax returns in India for coming financial years? Do I need to inform IT department about my status change? If yes, how?

    5) I am an NRI now, Can I still use my savings bank accounts in India to send and receive money?

    Looking forward to your valuable response.
    Thanking you in anticipation.

  106. Dharmesh says:

    Hello Sir,

    Example:

    I am currently live in Belgiume since last 10 year as a NRI & i will done Derivatives trading in Indian stock market, if earn profit 5 Lakh INR per annum then will i liable to Pay tax in both country?

  107. Wilson says:

    Hello sir,
    I am Living in UAE. I deposits my salary to my wife’s savings account and it is accumulated to 10lakhs and we withdraw it for purchasing a land in 2014 will it be taxable in India
    Looking forward for your valuable response
    Thank you

  108. VK PATEL says:

    hello sir,
    I have loss in partnership firm in USA income tax return for fy 2015-16. how i can show it in my income tax return of india.

  109. Richa says:

    I stayed and earned in US for approx 200 days in 2016 and post that I came back to India. Can I transfer all my savings to a normal savings account in India? Am I eligible to pay tax on that amount? Can I transfer some amount in the next financial year?Will that be taxable in the next financial year?

  110. M T Salman says:

    An NRI has income in India only from short term capital gains, on which TDS was not deducted but he paid advance tax. Does he have to file ITR?

  111. Malika Gupta says:

    Hi – I have a query, I am living and working in USA (on H1) but if I buy long term Insurance policies in india then after maturity (20 years) this money will be tax free in india (as per 80D) but if i want to transfer this money to USA (both principal and any gain on my policy) will I have to pay tax on same? Also can i claim the regular yearly premium i pay in USA tax filling?

  112. Johann says:

    Hello,
    I’m doing a rotation of 43 days out of India and 21 days in India and hence I’m out of India for over 200 days in a financial year. I have an NRE account to which all my salary savings are credited and the annual salary exceeds 2,50,000 rupees. I have FD’s whose interest generates much less than 50k rupees. Do I need to file tax returns solely based on my salary earned from abroad which is deposited into the NRE account? I have no other source of income in India.

  113. Arvind says:

    Dear Sir
    I’m NRI working in Indonesia. I regularly remit my salary to India. I have other source of income outside India temporary working with other engineering companies (based in Malaysia,Singapore,Denmark) for which they pay me remuneration for the job . Can they directly transfer this money to my NRE account in India from their country? What are the documents I need from them for submit to Indian authority? Do I need to pay tax on this extra income.

  114. Premjith says:

    Dear Sir,
    Is it NRI to pay TCS of 1% while buying car of above 10 lakhs in India?

  115. Madhu says:

    Hi, I intend to shift to UAE for business. I intend to be a NRI and this will be my first year.
    My family consisting of my parents, my wife and two kids, my younger brother and his family are all dependent on me and will be living in India.

    I need clarification on following :

    a. business would be either with companies outside India or maybe also with Indian Companies, so in such scenario will there be any tax implication if I have any profits generated out of companies based in India ? Will I have to pay any taxes.

    b. and can I transfer my income to support my above all family members, if so then is there any limit to each family member. My family members may also have their own source of income by way of business.

    c. In case if I accquire any property in joint names from the income earned outside India then in such case how will the taxation part be implemented ?

    Please advise.

  116. suresh says:

    Dear Sir,

    I’m currently working in a private IT company , deputed in Onsite (Japan). Currently I’m getting allowance in Japan and the usual Indian Salary (INR). In my case, Can i claim the HRA for tax exception?.

    Regards
    Suresh

  117. Karthick says:

    I have been transferred to Dubai in my current assignment and i have joined in Dubai in Feb 2017. I would like to know whether i should include the salary i received for the month of Feb and Mar 2017 in Dubai while i file tax returns for the Assessment Year 2017-18.

  118. CA S.K.Bisaria says:

    my a client is serving in merchant navy and remains out of india moving with vessel country to country for more than 182 days . his status is NRI and get his salary outside india . he want to file his ITR in india . my query is how he will file his ITR and take benfit of DTAA

  119. Rajesh Shetty says:

    Hi Neha,
    ” Tuition fee paid for spouse or children in India too can be claimed for deduction ” how can person claim the tax deduction on Tuition fees.

  120. Archana Saraf says:

    Hello. If an NRI purchases goods from India and sells it abroad and the transactions for payment to the vendor is being done through NRE account, is the income taxable in India?

  121. Shruti says:

    On 1st September 2016, I left India and came to Ireland to pursue my masters. As part of teaching assistant job, I got paid some money into a local Irish bank account. In May 2017, I joined an internship here, for which I got paid monthly salary into the local Irish bank account. However, now I am planning to return to India permanently. I’ll reach back on 1st September 2017. I have a normal savings account (neither NRO nor NRE) in HDFC bank. If I transfer money from my Irish account to that account in India, will it be taxable? I have already paid taxes to the Irish government. What’s the right thing to do here? Also, my parents had sponsored my tuition and living by loading money to an indian forex card. I used that to pay off deposits for my accommodation here, however, I’ve gotten the deposit back in my Irish bank account as well. How can I show that this money is not income? I have payslips for all my earnings.

  122. Mukesh Gupta says:

    Hi. I worked in united states from October 2010 until December 2016 in a US firm on H1-b visa. However, I came to India on vacation in May 2016 and because of some family emergency I extended my stay in India. I worked from June 2016 until December 2016 over email and phone from my home in India and was getting salary in USA. I didn’t go to any office or any work location in India and was nowhere associated with Indian entity of US firm. In January 2017, I joined an Indian firm in India and left the US firm and I am still in India.

    In short, I left united states in May 2016, but I worked for US firm until Dec 2016 before joining Indian firm in Jan 2017.

    As my physical location in India was more than 182 days in financial year 2016-17, I fall under RNOR category . But whatever income I earned between May 2016 until Dec 2016 will be considered as Foreign Income (non-taxed) OR Indian Income (taxed). I have W-2 US tax statements for June 2016 until Dec 2016 and have Form 16 for Jan 2017 until Mar 2017.

  123. Akash kumar says:

    Hi.I lived in kuwaitt city and i am NRI.i also live in india for some time.My query is that In India i want to purchase a car so i want pay money through my NRI account so will i get any type free tax or discount when i will pay through NRI bank account.
    If there is any tax is applied then what type of taxes i have to pay?

  124. SAHILNARANG says:

    One of my friend is NR. He has salary income in australia. & income frim house property & interest on fdr on which tds deducted. He has not filed return for last 6 FYs. He wants to claim refund of tds deducted.
    How can he do so & please note he has not disclosed indian income in filing return in australia

    • HRBlockIndia HRBlockIndia says:

      To claim a refund for past years he should have filed his return within due date for respective years. He can file his tax returns for max 2 years (i.e. A.Y. 2016-17 and A.Y. 2017-18.) In case if there were a few valid unavoidable reasons/circumstances due to which he could not file his return in the past he can make a delay condolence application to the Jurisdictional Principal Commissioner of Income Tax and if the officer allow him to file the return then only he can claim back the refund. It is advisable that he opens an NRE FCNR’s accounts which does not attract TDS, and he won’t have to claim a refund.

  125. Chinmay Jhaveri says:

    Very Nice article and topic covered

  126. Ahmed says:

    Hi Its very simple one I have moved to Australia on work permit,Part of salary i will be transfering to my savings account back in india.is that fine are am i liable to pay tax or something?

  127. Prasad says:

    I’m in the process of applying Plot loan for 40 lacks INR as NRI Home loan. I live in USA. how much tax deduction can be claimed per year in India on this loan considering no other income in India?

    • HRBlockIndia HRBlockIndia says:

      If you don’t have any income in India, then you don’ t have to pay taxes, therefore, there is no need to claim tax deductibles. But in case if the loan is used for the construction or purchase of a residential house and you are paying interest on such loan you can offset the interest against your rental/other income in the same year. In case if you do not have sufficient income to offset the entire interest you can carry forward the loss under the house property (max 2 Lakh) for next 8 years. This carried forward loss can be setoff only against rental income in future.

  128. Ramesh says:

    Dear Team,
    HI good morning , I need your support, I am working in Oman since April 2015.
    Now i have one personal loan from Oman and i want to transfer this money to my wife saving bank account in union bank of India.
    whether the amount will be taxable or any question will be from Income tax department or Union bank of india.

    Finally the amount will be giving to house construction .

  129. MANISH says:

    Hi, One of my friend (NRI) has received Rs.9.00 lacs in UAE from Indian Company as online consultancy services on which co. has deducted TDS of rs.90000.00 u/s 195 of Income Tax Act, 1961. Now he wants refund of Income Tax. How can he claim refund and in which section. U/s 90 & 90A, There is a requirement that Assessee has paid tax out side india then he can claim Double Taxation Benefits and Difference of Tax between both countries can claim refund. Please clearify

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