Any individual whose income exceeds INR 2,50,000, irrespective of them being NRIs or not, has to file an income tax return in India.
Archives: FAQs
Whether an NRI is required to pay Advance Tax?
If your tax liability exceeds INR 10,000 in a financial year, you are required to pay advance tax.
How can NRI avoid double taxation?
If a person has paid tax on the sale of property in India, then he can get a tax credit of the taxes paid in India, which will reduce his tax liability in the other country. Two methods are specified to claim tax relief – the exemption method and the tax credit method. In the exemption method, NRIs have to pay tax in only one country and have to be exempted in the other. In the tax credit method, if the income is taxed in both countries, tax relief can be claimed in the country of residence.
Do I need to file ITR even if my gross income does not exceed the exemption limit?
In certain cases, even if the total gross income does not exceed the exemption limit, an individual will have to mandatorily file an income tax return, for example, when (i) an Individual has deposited an amount exceeding Rs 1 crore in one or more current accounts maintained with a bank or co-operative bank (ii) Individual has spent an amount or aggregate of amounts exceeding Rs 2 lakh for himself/herself or any other person for travel to a foreign country; (iii) an Individual has Spent more than 1 lac on electricity
What are the documents needed for ITR purposes for income arising from business and profession for an NRI?
Besides PAN card, Copies of Passport and Immigration stamp, business income and the Balance sheet and Profit and loss statement, etc., are the documents needed to assess.
Can repatriation be done on account of a deceased person?
No, the funds cannot be transferred to the account of a deceased person.
Can an NRI give Power of Attorney to a resident of India to repatriate his funds?
An NRI can execute a Special Power of Attorney in favour of a local person for the said purpose.
Why is it essential to have an NRE/NRO account for an NRI?
When a person attains the status of an NRI, he has to change his bank accounts in India from regular accounts to NRE/NRO accounts. These accounts are also helpful in securing many benefits for an NRI, for example, benefits in the repatriation of funds, exemption from tax etc. Having these accounts are mandatory for an NRI, so if an NRI wants to save his earnings from abroad, he needs to have an NRE account, and if he wants to keep his income generated in India, he needs to have an NRO account.
Can the funds still be repatriated if a UK resident has a National Insurance Number and not PAN Card?
PAN card is compulsory for repatriation from India, even if you have a National Insurance Number.