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

Popular posts from this blog

Pink City Jaipur Gets UNESCO World Heritage Tag!

The Walled City of  Jaipur,  popularly known as the 'Pink City' is famous for its iconic architectural legacy and vibrant culture, on July 6 made its entry into the UNESCO World Heritage Site list during the 43rd Session of the World Heritage Committee held at Baku, Azerbaijan. A World Heritage Site is a location having an “Outstanding Universal Value,” and has common significance for present and future generations of all humanity. The city was proposed to be nominated for its value of being an exemplary development in town planning and architecture that demonstrates an amalgamation and important exchange of ideas in the late medieval period. The city of Jaipur was founded in 1727 AD under the patronage of Sawai Jai Singh II. It serves as the capital city of the culturally-rich state of Rajasthan. Interestingly, this is India’s 38 th inscription into the World Heritage list, India already has 37 world heritage sites, that include 29 Cultural properties, 7 Natural propertie...

Tarnetar Fair

One of the many vibrant festivals of Gujarat, Tarnetar Fair is the annual festival that takes place in Sundernagar,  Gujarat— a tiny village, about 200 km away from Ahmedabad.  This is inspired by  Draupadi's  swayamvara , and is a celebration of ethnic Gujarat’s folk-dance, music, costumes, and the arts, centered around young tribal men and women seeking marriage partners. Here many kinds of folk dances are performed; by far the most popular is the  raas , in which dancers hold sticks to clack against those of other dancers. As many as one to two hundred women perform  ramadas  in a single circle, to the beats of four drums at a time and the tunes of  jodia pavas  (double flutes). Rabari women of nearby Zalawad perform the famous circular folk dance called  rahado . Their marital status is indicated clearly by their costumes; a black  zimi  (skirt) means she is married. But if a woman is wearing a red  zimi , it means s...

5 FEMA Rules Every NRI Should Know

The Foreign Exchange Management Act (FEMA) is a law enacted by the Government of India in 1999 to control the flow of foreign currency across Indian borders.FEMA aims to facilitate external trade and their payments in India, a systematic improvement and continuation of foreign exchange in the Indian market.It’s important for Indians working abroad to understand FEMA rules for NRIs very carefully since it can affect the way they can send and receive funds from India.Let’s look at five FEMA Regulations for NRIs: 1.        Maintaining a Bank Account You need to operate bank accounts that are specifically designated for NRIs. FEMA rules for NRIs do not allow holding a savings bank account.  There are 3 major types of accounts as stipulated by the Reserve Bank of India (RBI)that you can open: - NRO account  - If you want to send money earned abroad back to India. - NRE account  - For repatriable or moveable assets like securities and cas...