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Do NRI need to file tax in India? How to file IT returns online

Is NRI required to file income tax return? – a very common question. In short – an NRI is liable to pay tax under certain conditions. This post will cover that… We have also touched – how to file NRI income tax return online.

Let us look at the various aspects of filing tax.

Do NRI need to file tax in India

Cases when Income Tax is applicable to an NRI

A Non-Resident Indian (NRI) has to pay tax on any income that is received, accrued or arisen in India. If you are an NRI and have one or more of the following income sources and your income in India exceeds Rs. 2,50,000, you are liable to file tax returns –

  • Interest earned in NRO accounts – It is subject to tax.
  • Rental income – It is subject to TDS of 30%. The tenant is responsible for deducting TDS and submit Form 15CA (and in some cases Form 15CB also) and then pay rent to the NRI.
  • Capital gains on house property or other asset – It is taxable and has to be added to the total income earned.
  • Income from fixed deposits or interest on savings bank account – Income is earned/accrued in India and therefore taxable.
  • Income earned – If you earn income while in India for part of the financial year, you have to file returns for the same.
  • If you have earned income in India for work done abroad, you have to file returns too.

How to file tax return for NRI

Due Date for Filing Income Tax Returns for NRI

The due date for filing income tax returns in India is on or before 31st July for the preceding financial year. So for the financial year – Apr 2017- Mar 2018, you have to file taxes on or before 31st July, 2018.

If as an NRI, you are a working partner in a firm that has not had the accounts audited yet, then you have to file taxes by September 30.

How to file tax return for NRI

You need not be physically present in India to file your tax returns. You can send all the relevant documents, complete the relevant form and sign it and send it to a tax expert in India who can file it for you.

But nowadays it is best to file tax returns online –

  • Get the documents and information such as PAN card, bank statements, income details and deduction details.
  • Register on the Income Tax India website
  • Choose the right ITR form.
  • Select the option on how to file returns. You can e-file your returns or download the relevant ITR complete and upload it.
  • Fill the form and submit it
  • Verify the ITR-V. It can be verified by printing it out, signing it and sending it via normal post or speed post to CPC Bangalore within 120 days of submitting the form. The address is –

Income Tax Department – CPC

                Post Box No – 1

                Electronic City Post Office,

                Bangalore – 560100, Karnataka

  • You will get an acknowledgment on receipt of the form. It can also be verified online or e-verified by using Netbanking, Aadhaar OTP or Bank account number.

The process of Income tax Refund for NRIs

You will get a refund only if you file your tax returns.

So even if you do not have to pay any tax but are eligible for a refund, you will still have to file tax returns. If you want to offset your capital losses against capital gains to lower tax liability, you have to file tax returns.

If you want to offset your capital losses against capital gains to lower tax liability, you have to file tax returns.

wiseNRI

Hope this helps you to file your tax returns this year smoothly. Please feel free to ask questions in the comment section regarding NRI Taxation.

Note – We are not CA but will try to answer based on our learning while working with NRI clients.

About the Author

Hemant Beniwal is a CERTIFIED FINANCIAL PLANNER and his Company Ark Primary Advisors Pvt Ltd is registered as an Investment Adviser with SEBI. Hemant is also a member of the Financial Planning Association, U.S.A and registered as a life planner with Kinder Institute of Life Planning, U.S.A. He started his Financial Planning Practice in 2009 & is among the first generation of financial planners in India. He also authored Bestseller book "Financial Life Planning".

  • Narendra says:

    i m nri and my employer send money which i hv earned outside india. i m working outside india he send money directly to my nre account ….is it taxable ?

    • Hi Narendra,
      Yes, “income received in India” will be taxed in India. But DTAA can provide some relief – talk to your CA. I will try to write a post on this.

  • Raja says:

    I left India in 1996 and have been living outside India since and have been visiting india only for short periods every year ( once or twice for 2 weeks at a stretch maximum ). I have investments in various banks and have FDs ( both INR and FCNR ) and hold NRE and NRO accounts. My rental income, mutual fund investments is through my NRO a/c only. I have not filed tax returns as yet and tax is deducted at source on my NRO accounts. Apart from these, I do not have any other monies anywhere else to declare. Do I still need to file Income tax since I continue to hold NRI status or should I only file as and when I get back to India?

    • Anuj says:

      Hi Raja,

      If your status is NRI and your total income in india exceeds 250000, you have to pay tax in india and file your return. If your tds is deducted on any income in india, you can easily claim it by filing return.

  • Palu says:

    I am a seafarer works on merchant foreign going ship, for FY 2017-18, I have not completed my nri days, am I need to file income tax? Kindly advise

    • Sneha says:

      Hi Palu,
      Yes, you need to file the Income Tax and you will be liable to pay tax as per the rules applied to NRI.

  • Awadh says:

    I want to know whether Salary income out side India should be disclosed in ITR or not?

    • Hi Awadh,
      If you are an NRI & filling tax in India – you can show that Income that you earned abroad. You don’t have to pay any tax on that.

  • Phil says:

    Does wise NRI undertake to take file tax returns for NRI from USA?

  • sanjay says:

    i am working abroad for last 7 years , my company remitt my salary directly to my NRE account in india , will this salary be taxed

    • Anuj says:

      Hi Sanjay,

      In your case, your income is accrued or arise abroad, so there is no question of tax in india irrespective of the fact it is credited in NRE Account.

  • Tejas says:

    I am working on ship and have been nri for 10 put of 12 years. Do I have to pay tax for those two years in which one was less than 182 days outside india

    • Anuj says:

      Hi Tejas
      I think in those 2 years your residential status will also be NRI. And if you have income accrue or arise in india during those 2 years, you have to pay tax in india as NRI

  • Balaji says:

    I am an NRI. The last 2 years my Indian income was over Rs 250,000 so I submitted returns to Indian IT dept. But this year onwards my income will fall substantially below this limit. Can I stop submitting future returns?

  • Swati Arora says:

    I want to file the tax as NRI but not getting any option to select the residential status or ‘Filing as NRI’ on the government tax portal. Please suggest how to file the tax as NRI for free online

  • namrata says:

    I was a tax resident in india in the financial year 2018-19 (resident in india for 190 days)…but moved out of the country, I know that i have file return in india for income earned in india but do i need to show my abroad income in the return

  • ANIL KUMAR PODDAR says:

    1.CAN NRI HAVE AN HUF FILE,
    2. DOES NRI IN UK HAS TO DECLARE INCOME IN INDIA IN THEIR TAX RETURN IN UK AND PAY TAX IN INDIAN INCOME IN UK EVEN IF IT IS UNDER TAX EXEMPTION IN INDIA.
    3.DO NRI NEED TO GIVE INFORMATION ABOUT THEIR HUF FILE IN UK TOO.

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