Filing Return of Income in India

When is a NRI mandatorily liable to file his ROI in India?

Ans.

A NRI is mandatorily required to file his ROI only if his taxable income* in India exceeds the basic exemption limit (i.e. Rs. 2,50,000/- for FY 2017-18). Long Term Capital Gains exempt u/s 10(38) earned during FY 2017-18 shall be included for determining whether total taxable income exceeds the basic exemption limit. 

*Further, a NRI earning the below mentioned incomes shall be liable to file ROI in India, irrespective of his total income being less than the basic exemption limit:-

- Short Term Capital Gains on equity shares or units of equity oriented mutual funds or units of business trust.
- Long Term Capital Gains chargeable to tax.

What is the due date applicable to NRI for filing his ROI?

Ans. A NRI is required to file his ROI for every FY by 31st July immediately succeeding the FY. However, in the following two scenarios, the due dates would be as follows:-


1. NRI’s personal accounts or the accounts of the firm wherein he is a working partner are required to be audited under any Indian Law.

Due Date - 30th September immediately succeeding the FY

2. Transfer Pricing provisions, if applicable

Due Date - 30th November immediately succeeding the FY

Whether a NRI can file his ROI beyond the above prescribed due dates?

Ans. Yes, a NRI can file his ROI even after the above prescribed due dates. A belated ROI can be filed within a period of one year from the end of the relevant FY for which the belated ROI is to be filed.


Further, if a NRI wants to file his ROI after the due date of belated ROI, he can do so by filing manual ROI with his tax officer. However, such ROI would not be considered as valid ROI and would not be processed. If a NRI wants his late ROI to be processed and claim refund, he may file an application with CBDT to condone his delay and grant him refund.

Whether a NRI can file revised ROI?

Ans.

Yes, a NRI can file a revised return of income. The revised ROI can be filed within a period of one year from the end of the FY for which the revised ROI is to be filed. 

What are the tax rates applicable to a NRI?

Ans.

 The tax rates applicable to a NRI are as follows:-

Particulars

Income Tax Rates

Education Cess

Secondary and Higher Education Cess

Upto

Rs 2,50,000

Nil

Nil

Nil

Rs 2,50,001-

Rs 5,00,000

5% of (Total Income – 2,50,000)

2% of Income-tax

1% of Income-tax

Rs 5,00,001-

Rs 10,00,000

Rs 12,500 + 20% of (Total Income – 5,00,000)

2% of Income-tax

1% of Income-tax

Above

Rs 10,00,000

Rs 1,12,500 + 30% of (Total Income – 10,00,000)

2% of Income-tax

1% of Income-tax

 

Further, surcharge @ 10% shall be levied for taxable income between Rs 50 lakhs to Rs 1 crore and 15% for taxable income exceeding Rs 1crore.

What are the consequences of not filing the ROI within the prescribed due dates by a NRI?

Ans.

If a NRI does not file his ROI within the prescribed due dates, then he shall be liable for the following:-

- Interest @ 1% per month or part of the month on the tax payable for delay in filing ROI 
- Fees for delay in filing ROI (w.e.f. AY 2018-19). Further, the amount of fees could be Rs. 1000 / 5000 / 10000 depending upon the total income and the date of filing the ROI. 
- He may be subjected to prosecution. However, if the ROI is filed within a period of one year from the end of the FY for which the ROI is to be filed or the balance tax liability after considering TDS and Advance Tax does not exceed Rs 3,000/-, then he shall not be liable for prosecution. 
- Refund cannot be claimed unless condoned by CBDT as stated above.

Whether foreign assets are required to be shown in ROI by a NRI?

Ans. No, a NRI is not required to submit the details of foreign assets owned by him in his Indian ROI.

Whether a joint return can be filed for husband and wife?

Ans. No, a joint return cannot be filed for husband and wife. As per the provisions of the Act, every individual is a separate assessee and he / she is required to file the ROI based on the total taxable income earned by him / her during a particular FY.