Ans. ROI is an Income-tax Form in which an Assessee reports information about his / her income and tax thereon to Indian Income Tax Department. The Act provides for Assessee who is required to file ROI and manner andthe due date within which the same is required to be filed.

Ans.

An NRI has to compulsorily file his ROI in India when:

·         Taxable income*in relevant FY (April to March) exceeds Basic Exemption Limit i.e. Rs. 2,50,000/- for FY 2019-20or

·         Where taxable income* is less than Basic Exemption Limit but the NRI:

              i.        has STCG on Equity Shares/ Units of Equity Oriented Mutual Funds/ Units of Business Trust; or

             ii.        has any LTCG chargeable to tax; or

            iii.        has deposited an amount or aggregate of the amounts exceeding Rs. 1 crore in one or more current account maintained with a banking company or a co-operative bank; or

           iv.        has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 2,00,000/- forhimself or any other person for travel to a foreign country; or

            v.        has incurred expenditure of an amount or aggregate of the amounts exceeding Rs. 1,00,000/- towards consumption of electricity; or

           vi.        fulfils such other prescribed conditions, as may be prescribed.

Categories iii to vi above have been incorporated recently under the Income-tax Act, 1961. So, individual’s need to check as to whether do they satisfy the said conditions and if they satisfy, then they are also required to incorporate the details as regard to amount of deposits in current account, foreign travel expense, electricity charges, etc while filing their ROI.

However, NRIs havingspecific sources of income like income from dividends, royalties, fees for technical services etc. on which appropriate taxes have been deducted and other prescribed conditions are satisfied, may not be required to file ROI in India. (refer FAQ on ‘Special Provisions relating to taxation of income of NRIs’)

(ROR having assets / signatory authority outside India as a beneficial owner or has beneficiary interest in any asset outside India is mandatorily required to file ROI even if their income is below the Basic Exemption Limit)

*Taxable income for the purpose of filing ROI means gross total income before giving effect to exemption on re-investment of capital gains (refer FAQ on ‘Capital Gains on sale of immovable property and Securities’) and Chapter VI-A deductions (refer FAQ on ‘Deductions from Gross total income’) i.e. donations, investment life insurance policy/ Unit Linked Insurance Policy/ Equity Linked Savings Scheme, mediclaim expenses, etc.

The aforesaid conditions are duly explained through examples in below, for the Reader’s ready reference and ease in understanding

a.    Mr. B has following income in India during FY 2019-20.

Is Mr. B liable to file ROI in India for FY 2019-20?

Yes, Mr. B would be liable to file ROI in India for FY 2019-20. Since, even though his Net total income i.e.  Rs. 2,10,000/-is below exemption limit of
Rs. 2,50,000/-,his taxable income i.e. gross total income before giving effect toExemption on re-investment of Capital Gains(i.e. Rs. 3,30,000/-) is above basic exemption limit.

b.    Mr. C has following income in India during FY 2019-20.

Is Mr. C liable to file ROI in India for FY 2019-20?

No, Mr. C is not liable to file ROI in India for FY 2019-20 as his Taxable income i.e. Gross total income before giving effect of Chapter VI-A deduction (i.e. Rs. 2,10,000) is below basic exemption limit of Rs 2,50,000/-.

c.    Will the answer to above FAQ change if; Mr. C has incurred
Rs. 1,50,000/- towards consumption of electricity during said FY?

Yes, Mr. C in the above example will be liable to file ROI in India for FY 2019-20. Since, even though his taxable income i.e. gross total income is below basic exemption limit of Rs. 2,50,000/-, he has incurred expenditure of more than
Rs. 1,00,000/- towards consumption of electricity during said FY and therefore, Mr C will be required to file ROI in India.

Ans.

It is advisable to voluntarily file ROI in India due to the following reasons:

         i.    To claim refund of excess TDS, along with interest@ 6% p.a.

        ii.    To be eligible to carry forward losses to be set off against future incomes, if any

       iii.    To claim benefit of lower tax under DTAA, if applicable

      iv.    The updated tax information/ records help NRIs

·         To comply with procedural documentation for repatriation of income and assets from NRO a/c to NRE a/c / Overseas a/c.

Have ready records as and when he / she returns to India or have to submit the said documents in his/ her country of residence.

Ans.

A NRI is required to file his ROI for every FY by July 31 immediately succeeding the FY (further extended till November 30, 2020 due to COVID-19 pandemic). However, in the following two situations, due dates will be as mentioned below:

Ans.

Yes, a NRI can file his ROI even after the prescribed due dates (specified in FAQ d. above). The belated ROI can be filed within a period of 1 year from the end of the FY for which the belated ROI is to be filed.

Example:

Further, if NRI intends to file ROI after the due date for filing Belated Return is passed (in order to claim refund of excess taxes paid), he/she may make an application with Income Tax Authorities to condone the delay and accept delayed ROI. However, same can be done only when there is valid reason for such delay.

Ans.

Yes, if an individual discovers any omission or wrong statement in ROI previously filed he/she may file a revised ROI within a period of 1 year from the end of the FY for which the ROI is filed.

Example:

Ans. Please refer FAQ on Tax Liability where the same is explained in detail.

Ans.

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

          i.   Interest @ 1% per month or part of the month on the tax payable, if any for delay in filing ROI.

         ii.   Fees for filing ROI after due date shall be levied as under (depending on total income during the FY, (w.e.f. FY 2017-18):

        iii.   In case of willful delay in filing ROI, NRI may be subjected to prosecution. Provided no  prosecution for failure to furnish ROI, if:

·         ROI is filed within a period of 1 year from the end of the FY

·         Tax payable by NRI on total income determined by the Tax Officer as reduced by Advance Tax paid, if any and TDS does not exceed
Rs. 3,000/-,i.e. his / her balance tax liability after considering TDS and Advance Tax does not exceed Rs.3,000/-

Further, refund cannot be claimed unless condoned by Income Tax Authorities as specified in FAQ e. above.

Ans. No, NRI is not required to submit details of foreign assets owned by him while filing ROI in India.

Ans. No, husband and wife cannot file ROI jointly in India. 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. 

Ans. AL is a Schedule of the ROI which is required to be mandatorily filled by Individuals and HUFs, if their total income exceeds Rs. 50,00,000/- in a FY. The said Schedule requires reporting of specified Indian Assets and corresponding Liabilities at the end of the FY.

Ans.

Ans.

All RORs, including Returning Indians qualifying to be ROR in India during the relevant FY are required to mandatorily report their Foreign Assets in the ROI.

Foreign Nationals in India on Employment, Business or Student visas and qualify as ROR are notmandatorilyrequired to report Foreign Assets acquired by them during those FYs in which they were NRs of India, provided that they are not deriving any income from such Assets during the current FY.

For e.g. – If a Foreign National had invested in Shares in a FY 2016-17 in which he/she is a NR of India and there is no dividend / other income received from those Shares in the current FY i.e. FY 2019-20 when he/she is a ROR, the same is not required to be reported in the ROI for FY 2019-20.

Ans.

As per the FA schedule provided in the ROI, the following Foreign Assets held as a Legal owner / Beneficial owner / Beneficiary/ having financial interest in any entity are to be reported:

 i.    Bank Accounts including accounts in which individual has a signing authority

ii.    Financial Interest in any entity

iii.    Foreign insurance policies

iv.    Foreign equity and debt interest

v.    Immovable Property

vi.    Trusteeship / Settlor / Beneficiary in a foreign trust

vii.    Other Capital assets – does not include personal assets

viii.    Other Foreign Income not associated with the assets reported above

Ans. There is no threshold limit on Income or Asset Value for reporting of Foreign Assets in the ROI.

Ans.

As per the new changes in ROI forms, the following additional details/information are required to be reported by NRIs, which are as under:

i.        NRIs have to provide their number of days stay in India for previous 5 years (i.e. Year for which ROI is filed plus 4 years prior to the year for which ROI is filed).

ii.        Details of shares held in unlisted companies in India. (i.e. shares not listed on a recognized stock exchange in India) i.e. Name of the company, PAN, number of shares held, Purchase value, purchase price per share, shares transferred during the year, closing balance

iii.        Details of company where assessee is a director i.e. Name of the company, PAN, whether the shares are listed or not, DIN, Type of company.

iv.        NRIs have to provide Tax Identification number (TIN) of their country of residence.

v.        Separate Schedules have been notified to report transactions taxable under Section 112A (tax on long-term capital gains on sale of equity share of company, unit of an equity oriented fund or a unit of business trust) and Section 115AD (Tax on income of FIIs from securities or capital gains arising from their transfer).

vi.        Zip codes are now required to be provided in Addresses of various Foreign Assets of Schedule FA Reporting.