INCOME TAX RETURN FILING FOR NRI

POSTED BY Narendra Punjwani ON February 9, 2011 12:26 am COMMENTS (3)

I heard from my friend about this website. According to him if we ask a question it is replied soon. But I have asked a question three times but every time my account shows quetions asked zero. This is last time i am asking the same question. Hope it will be put on the board for answering by somebody.

I am NRI. If I file return in India on my income earned in India. Is it compulsory to show my NRI income in that return. From that NRI income I have given loan to my relatives. Should i mention that in the return.

3 replies on this article “INCOME TAX RETURN FILING FOR NRI”

  1. ASHAL JAUHARI says:

    Dear Narendra, There is a small correction in what Manish has offered.

    From your query it’s not clear that you are earning any interest or not on the loan given to your relatives.

    In case you are earning any interest on these loans, the same is taxable as your Indian income coupled with other indian income.

    Regarding your NRI income you may declare the same under the exempt income (Schedule EI of ITR-2) head while filing your returns.

    Interestingly you may claim back your TDS if it’s more than what the net Tax liability is there on you by filing your Income Tax Return.

    For a quick reference I’m giving the heads under which the Indian income for you is taxable.

    1. Salary (in all probability not applicable to you as you are out of india & working abroad)
    2. Income From House Property – Rental income – You are eligible for home loan benefit also
    3. Income From Capital Gains – STCG from Direct Eq., Debt & Eq. MFs & other capital assets & LTCG from Debt MFs & Other Capital assets
    4. Income From Business & Profession
    5. Income From other sources – Interest & other income which is not reportable under above 4 heads

    Based upon the above info, you may file your Income Tax Return.

    Thanks

    Ashal

    1. Ashal

      Thanks for the addition . I didnt knew that we have to show the Outside income in the return

      Manish

  2. Narendra

    Accept my apology if you faced issues earliar , I have no idea why it happened. ,

    For now , let me answer your query .

    For an NRI , there are two incomes .

    A) Income he earns and retains outside India

    B) Income which he earns in India , it can be due to some interest in FD , from mutual funds or may be by selling some property or anything .

    In this case if B is more than the taxable limits which is 1.6 lacs per year . Then you have to file the returns . You dont have to show your NRI income in that tax return .

    Also you cant show those loans given to your relatives in the return as it has nothing to do with taxes .

    I hope you got your answer . Others please correct me if I am wrong ?

    Manish

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