Skip to main content

The Financial Checklist for NRIs for Filing Return Tax

Tax filing season is here and everyone is getting ready with their documents and financial details for the same and it’s also the season for many NRIs where they get bogged down by one question: ‘Do I Need to File Taxes in India as well?’ To all the NRIs out there yes, you’re liable to pay tax on income earned from sources in India or in case of income received in India. Here’s some tips for filing taxes for NRIs in India:
1.       Tax Residency Status
First, an NRI needs to determine his tax residency status as an NRI. This essentially tells whether a person falls into the category of resident or non-resident as an Indian taxpayer or not. Section 2(30) defines non-resident as a person who is not a resident and Section 6​ lays down the test of residency for different taxpayers.
2.       Gross Total Income
Gross total income is the income before any tax deductions are made. If an NRI’s gross total income exceeds Rs 2.5 lakh, he is liable to pay taxes as an NRI in India. This income will include the gain on the sale of equity shares on the stock exchange.
3.       DTAA Advantages
The Double Tax Avoidance Agreement is a treaty that is signed by two countries which allow a person to avoid paying higher taxes in both countries. An NRI gets the opportunity to earn tax credits for tax paid in India against his tax liability in his country of residence or vice versa.DTAA does not mean that the NRI can completely avoid paying taxes, but it does allow him to cut down on his tax implications on the income earned in India as well as abroad.
4.       Eligibility of Accounts
Foreign Currency Non-Repatriable (FCNR) accounts and Non-Resident External (NRE) Rupee accounts are not eligible for receiving tax refunds. Only Non-Resident Ordinary (NRO) Rupee accounts can be used to receive tax refunds.
5.       Remember the Date
The last date for filing taxes is 31st July 2019. If an NRI’s tax liability in a financial year exceeds Rs 10,000, and he has not filed advance tax, he will be liable to pay interest under section 234B and section 234C. Please note that for the next financial year, consider filing advance tax on or before 15th June, 15th Sept, 15th Dec and 15th March to avoid further complications.

Comments

Post a Comment

Popular posts from this blog

The Pushkar Mela 2019

The Pushkar Mela also is known as the Pushkar Camel Fair is a unique celebration of the beauty of the coveted “ship of the desert” – the camel along with some other cattle. It is estimated that more than 2 lakh people from all around the world visit this unique mela, which mainly focuses on trading camels and cattle, camel races which are the main attraction and a variety of other cultural performances and art exhibits. This year the dates of the Mela (Fair) are from 4th to 12th November 2019. The Pushkar Mela is also a holy pilgrimage for Hindus, pilgrims that visit Pushkar come to take a holy dip in the Pushkar Lake and offer prayer to Lord Brahma, the deity residing in the temple at Pushkar. It is said to be the only temple of the deity in the country, which makes it an important pilgrimage spot for people of faith. The Pushkar Mela creates a grand event cherished with a huge carnival including an array of musicians, magicians, dancers, acrobats, snake charmers and carousel rides
1 comment
Read more

Chennai Corporation Hosts Concert in City Parks!

The Chennai Corporation, along with UNESCO Creative Cities Network, launched a collective that will curate and present unique collaborative performances in parks across the city. Chennai made it to the UNESCO Creative Cities Network (UCCN) for its rich musical tradition in 2017. According to UNESCO, the goal of UCCN is to foster international cooperation among member cities committed to investing in culture and creativity for sustainable urban development, social inclusion and cultural vibrancy. The Greater Chennai corporation earlier this year in July launched the ‘concerts at the park’ initiative at Anna Tower Park. The civic body has planned to host music concerts in which both professional and amateur artists (singers and dancers) will perform every weekend. About 42 such big parks in the city have been identified that have an open amphitheater to take music closer to the residentsand as a way of encouraging Chennai’s unique art and culture in public spaces. More people will be en
Post a Comment
Read more

India Liberalizes E-Visa Regime to Boost Tourism

Launched in September 2014 e-Visa was aimed at making the process of getting an Indian visa easier, and to bring more business people and medical tourists into the country. The Indian e-Visa is an electronic authorization to travel to India for business, tourism, or medical visits. When applying for an e-Visa, it is not necessary to submit your passport or other personal documents to the consulate. Everything will be done online. E-Visa approval will be issued in advance electronically before a tourist departure to India. At the immigration checkpoint, the actual visa will be placed inside a user’s passport. The Government on 15th February 2019 has moved to further liberalize the e-Visa procedure. According to the statement by Tourism Ministry, there are some modifications to the previous guidelines that include increasing the number of countries where e-Visa was applicable from 46 countries to 166 countries and other series of amendments in the e-Visa regime to enhance the influx of
Post a Comment
Read more