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5 tips for NRIs while filing income tax returns in India - Times Of India

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You are here: Home > Collections > Taxable Income

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5 tips for NRIs while filing income tax returns in India


Deepa Venkatraghvan Jun 27, 2012, 10.19PM IST

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Tags: NRIs

Non Resident Indians

KPMG

income tax returns

Central Board of Direct Taxes

CBDT

Advance tax

As the last date for filing tax returns in India draws near, Non Resident Indians (NRIs) must gear up to get their paperwork in order. In this article, we take a look at the top 5 things that NRIs must keep in mind while filing their India tax return. But before that, let us quickly sum up under what circumstances NRIs must file their returns in India. If you are an NRI, you would have to file your income tax returns for 2011-2012 if you fulfill either of these conditions:
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-Your taxable income in India during the year 2011-2012 was above the basic exemption limit of Rs 1.8 lakh OR -You have earned short-term or long-term capital gains from sale of certain investments and assets, even if the gains are less than the basic exemption limit. "What this means is that firstly, NRIs do not get the benefit of differential exemption limits on basis of age or gender that is available to Resident Indians. Secondly, for NRIs, certain short term or long term capital gains from sale of investments or assets are taxed even if the total income is below the basic exemption limit. These include short term capital gains on equity shares and equity mutual funds where tax rate is 15% and long term capital gains on securities and assets where tax rate is either 20% or 10% without indexation," explains Vaibhav Sankla, Director, H&R Block India. There is an exception: If your taxable income consisted only of investment income (interest) and/or capital gains income and if tax has been deducted at source from such income, you do not have to file your tax returns. Having laid down the ground rules, let us look at some of the important practical aspects on filing tax returns in India. 1. Mandatory e-filing if taxable income is more than Rs 10 lakh Recently the Central Board of Direct Taxes ( CBDT) in India issued a notification which has made it mandatory for individuals who have annual gross total income (that is, income before any Chapter VI deductions like Sec 80C etc) in excess of Rs 10 lakh to file their returns online from financial year 2011-2012. This applies to all individuals including non resident Indians. So as an NRI with gross total income exceeding Rs 10 lakh in 2011-2012, you must file your returns electronically. There are several options for you to do that. You can file your returns on the income tax website for free.

IN-DEPTH COVERAGE Taxable Income

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8/30/2012 3:39 PM

5 tips for NRIs while filing income tax returns in India - Times Of India

http://articles.timesofindia.indiatimes.com/2012-06-27/other-news/3244...

But the process can be cumbersome. You would need to download a software, fill in your details and upload an XML file. If you do not attach a digital signature, you would need to print and send a copy of the acknowledgement (known as ITR-V) to the tax office in Bangalore within 120 days from the date of uploading the xml file. The other, more user-friendly option is to use an online filing website such as hrblockindia.com, taxsmile.com or elagaan.com. These websites offer end-to-end e-filing service with an option to subscribe for digital signature as well. The fees and features vary among these. A detailed article on e-filing websites will follow soon. 2. Beware of interest liability on non-payment of advance tax As per the provisions of the Income Tax Act, you must pay advance tax in three instalments during the year in case the tax payable, after adjusting TDS is likely to be Rs 10,000 or more. "There are interest implications in case of default in payment of any instalments or lesser payment of advance tax. The interest is generally 1 percent per month for the default amount and extends till the date of payment. Therefore, NRIs should evaluate if they were liable to pay advance tax and whether the same was paid in time. If not, they would need to calculate the interest for default and deposit the same before filing the tax return," explains Vineet Agarwal, Director, KPMG India.
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3. Don't forget to file a return to claim refund As per the criteria mentioned earlier, it is possible that you may not have to file a tax return in India at all. However, don't forget that if you have a refund due, you must file a tax return and get a refund of any excess taxes paid. This may happen where the tax deducted at source is more than the actual tax liability. For example, suppose your taxable income for the year was below Rs 1.8 lakh but the bank deducted tax at source on your interest amount, you can claim a refund by filing your tax return. Another instance is when you have a capital loss that can be set-off against capital gains. Tax may have been deducted at source on the capital gains, but you can set-off (or carry forward) capital loss against the gain and lower your actual tax liability. In such cases, you would need to file a tax return. Sankla makes an important point, "If you are expecting a refund, make sure that you put accurate bank details such as account number and MICR code of the branch. If you efile your return, refunds are processed electronically so it is important to give accurate bank account details." 4. Consequences of delay
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5 tips for NRIs while filing income tax returns in India - Times Of India

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5 tips for NRIs while filing income tax returns in India - Times Of India

http://articles.timesofindia.indiatimes.com/2012-06-27/other-news/3244...

Readers' opinions (92)


Sort by: Newest | Oldest Ashok (Birmingham UK) 29 Jun, 2012 04:54 PM Indian Govt.,is very very foolish,why cant they bring blackmoney from Swiss Bank if it would be done the value of the indian currency will go high.That I am sure but Indian Govt., has not courage to do it. Bichhu (Odisha) replies to Ashok 20 Aug, 2012 05:58 PM i agree with u Mr Ashok , i want to share with all indian citizen that our politicians are very intelligent how to acquire public money and invest at swiss bank or bula bula .... thats why public cant do any thing with them,they dont have any power .only young stars can do . lets join to get back india money. baba lalu dev (jammu) 28 Jun, 2012 04:10 PM The most important tips missing are 1) Jaan-Pehchan 2) Rishwat dena sikho. kalpanakante (Hyderabad) replies to baba lalu dev 29 Jun, 2012 04:03 AM Do you need to accept and encourage corruption?Out of fear arises corruption.There is a tollfree number to report such things and dont fear,your name will not be made public. Suresh BV Bharadwaj (Bangalore) 28 Jun, 2012 03:58 PM Joshua Jesus Christ, the enemy-in-chief of the Non-Aryan European Christian colonial rulers of Israel, led the fiercest Israeli Jewish freedom movement against them and dedicated his life to throwing them, lock, stock and barrel out of his Aramaic Hebrew Jewish Israel country & paid with his life for his uncompromising violent and aggressive fight against the Non-Aryan European Christian colonial rulers of his Jewish Israel. Similarly, Mahatma Mohandas Karamchand Gandhi, the Indian Sanatani Hindu, led a national freedom movement against the Non-Aryan European Anglican, British, English, Irish, Scottish, Welsh, French, Spanish, Dutch, Danish, Norwegian, Swedish, German, Austrian, Belgian, Portuguese, Roman and Italian Christian rule of the Asian Indian Aryan, Dravidian, Mongolian and Australoid Asian Indian Hindu, Sikh, Shinto, Tao, Muslim, Confucian, Buddhist & Jain Sanatani India. The Non-Aryan European Christians were furious at their deadliest Israeli Jewish Rabbi enemy Joshua Jesus Christ and searched for him, monitored him, manipulated him, hunted him down, arrested him, forcibly removed his clothes, made him naked, hit him hard, punched him, beat him severely, kicked him, dragged his naked body through the roads and streets of his country, right before the eyes of his biological mother Mary, biological father Joseph, close ally Mary Magdalene, his fellow Jewish men and women, abused him, scolded him, skinned him, broke his bones, spilled his blood, made his body's liquid and solid waste spring away and fall to the ground, crushed his ribs, nailed his hands, legs, chest and thighs to the Evil European Christian Cross, and killed him in the most barbaric, atrocious, ruthless, blood-thirsty, evil, cruel, wicked and genocidal manner. The same, the Non-Aryan European Christians threw the Indian Hindu Sanatani Mahatma Gandhi out of a running train in Johannesburg, pulled him out of a Indian Indentured Protest rally that he was addressing and a group of the Non-Aryan European Christian men, women and children pounced on him, surrounded him, beat him, kicked him and punched him hard and furious until he fell down unconscious, almost dead; Finally, the Non-Aryan European Christians killed the Indian Sanatani Hindu Mahatma Gandhi with the help of Edward VI, the British Christian king and the two Non-Aryan European Greek Christians Governor General and Viceroy Lord Louis Mountbatten of Mountberg, UK, and Nathuram Godse (the latters Non-Aryan European Greek Christian forefathers entered India during the Non-Aryan European Christian crusade religious wars against the Israreli Jewish Rabbi Joshua Jesus Christs Jewish Israel and Mohammad Paigamburs Muslim Arab countries and during the European Greek King Alexanders invasion of India. Jai India! Jai Bharat! Jai Azad Hind! Jai Hind! Vande Mataram! OM! true (uae) replies to Suresh BV Bharadwaj 28 Jun, 2012 06:36 PM Add this Quran ch.12 ver 111 In their history verily there is a lesson for men of understanding. It is no invented story but a confirmation of the existing (Scripture) and a detailed explanation of everything, and a guidance and a mercy for folk who believe. quran ch.14 ver 9 Has there not reached you the news of those before you - the people of Noah and 'Aad and Thamud and those after them? No one knows them but Allah . Their messengers brought them clear proofs, but they returned their hands to their mouths and said, "Indeed, we disbelieve in that with which you have been sent, and indeed we are, about that to which you invite us, in disquieting doubt." Shyam Narayan (Delhi) 28 Jun, 2012 03:36 PM

This is more informative and clear. Chris (Dubai) 28 Jun, 2012 03:01 PM Unlike the UK /US or other European countries, taxes go towards betterment of society viz., old age pension schemes, Medicals and free education. In India it goes into the Govt. coffers and ends up in our local politician's pockets. Potholes, water scarcity and corruption is still the hallmarks of our beautiful booming ( ? ) economy. Aish (USA) replies to Chris 30 Jun, 2012 02:12 AM Im really sorry to burst ur bubble but GOvt. taxes in US go to GOvt. officials pockets just as much as any other other country & does NOT go to betterment of society; (Born & raised in US) They just give an illusion of betterment when there are homeless people living in the underground subways w/rats. In the US officials only "pretend" not to be corrupt, those are the worst, LOL

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8/30/2012 3:39 PM

5 tips for NRIs while filing income tax returns in India - Times Of India

http://articles.timesofindia.indiatimes.com/2012-06-27/other-news/3244...

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