Income Tax Return

Description

For Non-Resident Indians (NRIs), filing an Income Tax Return (ITR) in India involves specific eligibility criteria and considerations. Here’s a detailed overview:

1. Taxable Income:
   • NRIs are liable to pay tax in India on income that accrues or arises in India, such as:
     • Income from a business or profession set up in India.
     • Salary earned in India.
     • Rental income from property situated in India.
     • Capital gains from the sale of assets located in India.
     • Interest income from Indian sources.
   • Income earned outside India is generally not taxable in India for NRIs.
2. Eligibility to File ITR:
   • NRIs are required to file an Income Tax Return in India if their total taxable income in India exceeds the basic exemption limit.
   • Even if their income is below the basic exemption limit, NRIs may choose to file an ITR to claim refunds, carry forward losses, or comply with regulatory requirements.
3. Basic Exemption Limit:
   • The basic exemption limit for NRIs is the same as for resident Indians, which may vary depending on the age and category of the taxpayer.
   • For example, for the assessment year 2023-24, the basic exemption limit for individuals below 60 years of age is Rs. 2.5 lakh.
4. Penalties:
   • Non-compliance with income tax filing requirements may attract penalties and interest under the Income Tax Act, 1961.

For an NRI (Non-Resident Indian) filing an income tax return in India, the following documents are typically required:

1. Proof of Identity:
   • Copy of Passport: A copy of the passport showing personal details and the page with a valid visa stamp.
2. Proof of Address:
   • Overseas Address Proof: Copy of any of the following documents showing your overseas residential address – utility bill (electricity, water, gas), bank statement, or rental agreement.
   • Indian Address Proof (if any): If you have an Indian address, provide a copy of a utility bill, Aadhaar card, or any other document showing your address in India.
3. Tax-related Documents:
   • Form 16/16A: If you have received income subject to TDS (Tax Deducted at Source), you will receive Form 16 (for salary income) or Form 16A (for other incomes) from the deductor. These forms provide details of the tax deducted and deposited with the government.
   • Form 26AS: This is a consolidated tax statement that provides details of tax credits, including TDS deducted by various deductors, advance tax paid, and self-assessment tax payments made by you.
   • Bank Statements: Copies of bank statements showing interest income earned on deposits in NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts, if applicable.
   • Income from Property: Details of rental income received from properties owned in India, along with rental agreements and other related documents.
   • Any other Income Documents: Documents related to any other income earned in India, such as interest income from investments, capital gains, etc.
4. Investment-related Documents:
   • Details of Investments: Provide details of investments made in India, such as mutual funds, stocks, bonds, etc., along with statements showing transactions and gains/losses.
   • Sale/Purchase Documents: If you have sold any investments or assets in India during the financial year, provide copies of sale/purchase deeds or transaction statements.
5. Tax Residency Certificate (TRC):
   • TRC may be required to claim benefits under the Double Taxation Avoidance Agreement (DTAA) between India and the country of your residence.
6. Foreign Income Documents:
   • Details of Income Earned Abroad: If you have any income earned outside India, provide supporting documents such as salary slips, employment contracts, rental income statements, etc.
7. Tax Payment Proofs:
   • Copies of challans or receipts for tax payments made, such as advance tax, self-assessment tax, etc.
8. Bank Account Details:
   • Details of NRE/NRO bank accounts: Provide information about your NRE/NRO accounts, including account numbers and balances.