Should an NRI file I-T returns if there isn’t a revenue in India?

Is it obligatory for a non-resident Indian (NRI) to file revenue tax return (ITR) yearly in India regardless of not having any revenue in India?

—Dolly Moga

According to Indian tax legal guidelines, any individual whose revenue exceeds the utmost quantity not chargeable to tax (i.e. ₹2.5 lakh underneath the outdated tax regime; ₹3 lakh underneath the brand new tax regime) through the monetary yr, is required to file an ITR in India. Therefore, you aren’t obliged to file returns should you shouldn’t have any revenue in India.

Though there isn’t a requirement to file the ITR, sure high-value transactions are required to be captured and reported by a reporting entity though these transactions could not have any reference to revenue. Certain examples are: investing a sum of greater than ₹10 lakh in non-residential exterior (NRE), non-resident bizarre (NRO ) or FCNR (overseas present non-resident account) mounted deposits (FDs) or subscribing to shares of an Indian firm or mutual funds for greater than that sum; buying an immovable property in India for greater than ₹30 lakh. In such circumstances, the tax division could search to verify the transactions and a response must be filed diligently with out which it could finally lead to issuance of a reassessment discover.

I used to be working within the US since 2012. About a month again, I give up my job and got here again to India on account of well being points. After my remedy right here is over, I’ll return and seek for one other job within the US. I earn NRO saving financial institution curiosity and NRE mounted deposit curiosity from banks in India. What is the utmost interval of keep allowed in India to maintain the FD curiosity tax free?

—Name withheld on request

NRE FD curiosity stays exempt from tax until such time that the individual qualifies to be an individual resident outdoors India (i.e. a non-resident) underneath Foreign Exchange Management Act (Fema). If one is on a short lived go to and doesn’t intend to remain again for good, then the individual continues to stay an individual resident outdoors India underneath FEMA.

In your case, your India go to overlaying this era of keep might be handled as a short lived go to and you may proceed to assert exemption for NRE FD curiosity earned by you.

Harshal Bhuta is companion at P.R. Bhuta & Co. Chartered Accountants

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Updated: 06 Sep 2023, 10:56 PM IST