Yes, If your total income exceeds Rs.2.5 Lakhs Yearly then you have file income Tax Return in India. Moreover, If You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit, then also you have to file Income Tax Return in India.
July 31st is the last date for filing your Indian income tax returns for the financial year 2018-19.
Failing to which its attracts heavy penalty under Income tax Provisions.
As per the provisions of the Income Tax Act, you must pay advance tax in three installments during the year in case the tax payable, after adjusting TDS is likely to be Rs 10,000 or more. If advance tax payments are missed in a year than interest need to be paid for that as mentioned under Section 234B and Section 234C.
Our Tax team at Applylegal.com will guide you through the entire process.
Any NRI who earn more than INR 2,50,000 in a Financial Year is liable to e-file income tax return in India.
- To carry forward a loss.
The only income earned from selling an asset in a financial year where TDS has beendeducted are not required to e-file income tax return for that year.
To claim a refund.
Income generated from house property that is situated in India is taxable here. The income tax calculation rule will be followed as same as a resident’s. Whether the property is vacant or rented out, it is liable to pay income tax on that. An NRI is also entitled to claim 30% standard deduction on house property against home loan interest payment. Also, NRI’s can claim a deduction against principal repayments under section 80C which includes Stamp duty, registration charges paid to purchase a property.
- Deposits with Indian bank.
Debentures issued by a publicly-listed Indian company (not private).
Shares in a public or private Indian organization.
Any security of the Central Government.
Other assets of the Central Government as specified for this purpose in the official gazette.
Deductions under Section 80 is not allowed while calculating such investment income.
Long-term capital gains, no deductions are allowed under Section 80 but for such
income, the exemption can be claimed against the profit earned under Section 115F if
profit is not reinvested back into following:
- NSC VI and VII issues.
- Shares in an Indian company.
- Debentures of an Indian public company.
- Central Government securities.
- Deposits with banks and Indian public companies.
If the cost of the new asset is less than net consideration than capital gains are exempt
proportionately from tax liability. If the new asset purchased is transferred or sold back
within next 3 years from the purchase than the profit exemption will be added to the
income of the year of sale / transfer.
These benefits will be available to NRI even after the person becomes a resident and will be
effective until the asset converts to money. Any NRI can opt out of the special provision and
in that case, his/her income will be taxed as normal Income Tax Act provision.
Section 54 EC
The income from capital gains is reinvested into specific bonds then they are allowed for
deductions.If the capital gain earned from the first property is not invested into another
one then it can be invested into bonds for up to Rs.50 lakhs issued by National Highway
Authority of India (NHAI) or Rural Electrification Corporation (REC).
The homeowner can invest profits into these bonds within 6 months’ time. To be eligible
to claim exemption, investment needs to be done before the income tax filing deadline.
The invested money can be converted into cash after 3 years and cannot be sold before
the 3 years lapse from the selling date.
In such investments, the NRI must show relevant proof to the buyer so that no TDS get
deducted on the capital gains. Excess TDS deducted can be claimed at the time of
income tax return filing.
Some Investments under Section 80C:
- Investment in PPFs.
- Investments in NSCs.
- 5 Year Deposit Scheme held with Post Office.
- Senior Citizen Savings Scheme.
- Investment under RGESS under section 80CCG.
- Deduction for the differently-abled under section 80DD.
- Deduction for the differently-abled under section 80DDB.
- Deduction for the differently-abled under section 80U
To avoid double taxation, NRI’s can seek relief against the Double Tax Avoidance
Agreement (DTAA) between the two countries. Doing such will make them pay tax only
either in the home country or in India.
Relief can be claimed by two methods:
Exemption method: where income is taxed only in one country and is exempted in another.
Tax credit method: where the relief can be claimed in the country of residence.
Interest earned from NRE account is tax exempted , whereas interest earned from NRO
account is taxable.