Filing Return of Income in India

When is an assessee compulsorily liable to file ROI in India?

Ans. An individual is liable to file ROI compulsorily only if his total taxable income in India without giving effect to the provisions of section 10A, 10B, 10BA or Chapter VI-A in the relevant Financial Year (April – March) exceeds the maximum amount not chargeable to tax:

Financial YearBasic exemption limit in Rupees
2011-12Rs. 1,80,000/-
2012-13Rs 2,00,000/-
2013-14Rs 2,00,000/-
2014-15Rs. 2,50,000/-

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

Ans. A NRI has to file ROI if his taxable income exceeds minimum amount not chargeable to tax. Further, a NRI earning below mentioned income shall be liable to file tax return in India:

  • Income from Short Term Capital Gains on equity shares or units of equity oriented mutual fund.
  • Income from Long Term Capital Gains, which are chargeable to tax.
  • Incomes which are chargeable to tax irrespective of basic exemption limit.

Can an NRI who is not subject to tax in India file his ROI voluntarily.Is it advisable?

Ans. Yes it is advisable and he can file his ROI for following reasons:

i. To claim refund of excess tax deducted at source, along with interest @ 6% p.a.
ii. To be eligible to carry forward losses to be set-off against future incomes
iii. The updated tax information/ records help NRI’s to comply with the procedural documentations for repatriation of income and assets held in India
iv. It also helps NRI access ready records as and when he returns to India