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How Can NRI’S File Income Tax Returns?

Wednesday February 22, 2017,

3 min Read

If you are an NRI who lost connection with your motherland but not the income arising from your properties back home, then filing income tax returns is something that you have to follow up along with your visits back home.

You may be unsure about filing tax returns in India, but as a thumb, rule if your gross total income crosses INR 2,50,000, then under section 80 you must file income tax return in India. Although senior citizens enjoy higher exemptions, the maximum limit for exemption for an average NRI is 2,50,000 irrespective of their age. For computation of your gross total income, you take into account your income from salaries, income from other sources, income from house property. Therefore, even if you are an NRI any income which arises or is earned in India will be taxable under section 80C. If you own a house property in India any income earned by way of let out property will be taxable under section 80C. Moreover, any income which is received by way of capital gains will also be taxable, any other income which arises in India which does not fall under any of the before mentioned categories will be taxable under the head income from other sources.

The due date for filing income tax returns in India is on or before 31st July following the financial year of an individual, the due date being September 30 if NRI is a working partner in a firm whose accounts are yet to be audited.

So how do we proceed with NRI return? NRI’s can file their ITRs online, in addition to e-filing, it can be done in paper format as well, the format can be furnished electronically as well by signing with your DIGITAL SIGNATURE CERTIFICATE. Transmitting the ITR data electronically using verification code and thereafter submitting the verification of the return in return form ITR-V. The assessee should print two copies of the ITR-V form duly signed by the assessee has to be sent by post and the other one to be retained with the assessee.

Therefore, filing the ITR online is a simple way to file your NRI return, ITR-1 is for those whose income accrues from farming, ITR-2 is for those who are partners of a firm and ITR-4 for who are not into any other profession apart from the partnership. ITR-4 is for those people who have earned income through proprietary business.

Moreover, the documents that one should submit includes their passport of their country of residence. Your passport enables the IT department to calculate the number of days spent outside India and to check whether you qualify as a non-resident Indian. Further, to check the transactions you have made in India, you must submit your DEMAT account statement and TDS certificates received from other parties.These statements are required for auditing their bank accounts and transactions in India. However, if income earned is only from long-term capital gains or investments, then you don't necessarily have to file NRI return.  Apart from this, if TDS has already been paid, then too the non-resident Indian need not file income tax return.

This article has been contributed by Simran Setia, LegalRaasta- an online platform for legal services such as Private Limited Company Registration, Patent Registration, ISO Registration, income tax return filing, tds return filing.