Filing Tax Returns for NRI

When is an NRI required to file his tax return in India?

If the income earned in India by an NRI by way of interest from savings account / fixed deposits or rental income, capital gain on sale of assets, shares etc., exceeds Rs.250,000, then he is mandatorily required to file a tax return in India.

However, when the income earned by the NRI is less than Rs. 250,000/- although it is not mandatory, if the NRI has TDS (Tax Deduction at Source) credit by way of deduction made by the banks on the interest income in their NRO account, or against rental income or against the capital gain deducted by the buyer etc., he can file a tax return and if his income is less than Rs. 250,000, as there is no tax payable, he can claim the refund of such TDS credit from the Income Tax Department.

Also, if the NRI has incurred any loss on the sale of investments (either short term or long term) then NRI can carry forward the losses to future years by filing the tax returns, so that such carried forward losses are offset against the future taxable incomes and thus save taxes payable in those future years.

Information required to be reported in the tax returns for NRI :

While filing their tax returns, NRI’s have to declare following information in their tax returns:

  • Number of days stay in India in FY 2022-23 and during 4 years prior to FY 2022-23
  • Taxpayer Identification Number/ Social security number in the country of residence
  • List of Bank Accounts in India (information about their foreign bank accounts are not required to be submitted)
  • Further NRIs, having a total income above Rs. 50 lakhs, must furnish the cost of acquisition of certain assets (both movable and immovable) located in India and their corresponding liabilities
  • NRI is not required to mention his Aadhar No. while filing tax returns.

How RMC can help NRIs in filing your tax returns?

RMC understands basing on discussion with the NRI, their different incomes that become taxable in India.

RMC then guides the NRI’s in understanding the tax laws in India, prepare a draft tax return, and arrive at the tax liability to be discharged or refund if they are eligible for a refund.

RMC obtains various inputs for the disclosures to be made in their tax returns and guides on what are mandatory disclosures and what are optional.

RMC on their behalf files their tax returns ensuring the compliance with Income Tax act.

RMC also addresses the notices if any received by the clients to resolve them in compliance with the Tax Laws.

If you want to file your tax returns in India, write to us at [email protected]

To know more about:

Relevance of Residential Status in Taxation

Rental Income and its taxation

Taxation of Capital Gains

Exemptions from Capital Gains

Taxation on the sale of Agricultrual Land

Taxation of Gifts