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NRI TAX RETURN Every year, millions of NRIs file their Income Tax Return in India. One of the important factors to be considered at the time of NRI tax return filing is their residential status. As a general rule, only income earned in India or accrues or arise in India is taxable in case of NRIs and income earned outside India is not taxable. In this write up, we would be analyzing the treatment of interest earned on NRE accounts at the time of NRI Tax return filing in India . Some of the incomes of the NRI which are taxable in India are as under: a)       Interest on savings account b)       Interest on Fixed deposits c)        Rental income earned in India d)       Gain on sale of immovable properties e)       Gain on sale of shares and mutual funds in India When a person becomes NRI, his savings account in India is converted into NRO account either by himself or by banker. This account is maintained only in Indian Rupees. Only person resident outside India can o

NRI TAX RETURN  Although both residents and nonresidents are subject to tax in India on income earned or accrue or arise in India, and liable to file their Income Tax Return in India, however, taxability of Non Residents in India are slightly different from Residents and they are allowed various exemptions and deductions under the Act.   There are certain incomes of NRIs which are exempted from tax and accordingly, will not form part of NRI Tax Return Filing in India.   Incomes of NRIs exempted from tax Following incomes of NRIs are exempted from Tax in India.   1)       Any Interest earned by NRI on its NRE or FCNR account with any bank in India.   2)       Any interest earned on government notified bonds and government saving certificates.   3)       Long term capital gains upto Rs.1 lac from listed equity shares and equity oriented funds.   4)       Similar to exemptions available to Residents from long term capital gains from sale of house property

  NRI Tax Return There are approx. 30 Million Nonresident Indians all over the world which comprises of Overseas Citizen of India as well as Person of Indian Origin. Like Residents, Nonresidents are also liable to pay taxes in India and file their Income Tax Return . A question comes in mind as to how NRI tax return filing is different from Resident tax return filing? First of all, income earned abroad will not form part of NRI Tax return . Thus, they are liable to pay taxes and file their Income tax return only on the income earned in India. Accordingly, NRIs are liable to pay taxes on rental income, salary income, capital gain on sale of property, interest on fixed deposits and capital gains on sale of shares and mutual funds in India. However, NRIs are liable to pay taxes on aforesaid income and file their tax returns in India only if such income exceeds the basic exemption limit of Rs.2.5 lac during a financial year. NRI taxation is a wide concept covering not only Income

SUBSIDIARY COMPANY REGISTRATION IN INDIA One of the most popular forms of foreign company registration in India is in the form of registering an Indian subsidiary of the foreign parent company.   In this write-up, we would discuss about some important points relating to subsidiary company registration in India . 1)       Subsidiary companies are those companies in which parent company hold more than 50% shares or exercise control over its board of directors or on decision making.   2)       When parent company holds entire shares or 100% shares, the subsidiary company becomes wholly owned subsidiary .   3)       Unlike Branch office and Liaison office, there is no restriction on business activities of the subsidiary company in India. Accordingly, subsidiary company can undertake all the business activities subject to RBI guidelines as well as Memorandum and Article of Association of Companies.   4)       Unlike Branch offices which are taxable at higher rates o

  NRI Tax Return Filing in India Financial Year 2021-22 has ended and now, the annual Income Tax Return filing in India season will start from early May 2022. In this write up, we would be discussing about what information is required for NRI Tax Return     filing in India. NRI Taxation- List of Information Required Following preliminary information is required before preparation and filing of NRI Tax return in India: a)       Determine the Residential Status of NRI For filing Income Tax Return in India , it is very important to determine the residential status of any person. This is because in case of Residents, His income earned in India as well as outside India is taxable in India. However, in case of NRI, His income accrued or earned in India is taxable and income earned outside India is not taxable in India.   As per the act, any person who is not resident in India is considered as Nonresident. Further, residency status in India depends upon number of days of

Income Tax Return in India Income Tax Return in India India is a one of the fastest growing economies of the world and requires lot of funding for meeting its infrastructure development, defense  and other social development requirement. Direct taxes and indirect taxes are major sources of revenue of Indian Government and Income Tax Return in India is one of the means through which collection of direct taxes are monitored by the government for meeting its various development requirement.   Who are required to File Income Tax Return in India?   As per the domestic law in India, every person who has taxable income in excess of basic exemption limits are required to file Income Tax Return in India. Also, the present basic exemption limit is Rs.2.5 lac. Further, besides aforesaid income criteria, certain people are also required to file their Income Tax Return in India although their income has not exceeded the basic exemption limit as mentioned above like in case of el

  INCOME TAX RETURN IN INDIA The financial year 2021-22 is coming to an end now and every assessee needs to prepare and file their Income Tax Return in India on or before the due dates prescribed under the Income Tax Act.   In this write up, we have provided some of the important things which should be kept in mind for the purpose of filing Income Tax Return.   Things to be kept in mind for purpose of ITR Filing   Following things shall be kept in mind at the time of ITR filing for FY 2021-22     1)       Ensure you have done your investments eligible for deduction before 31 st March As per the provisions of the Income Tax Act, every assessee is entitled to deduction upto Rs.1.5 lac for making investments in specified schemes on or before the end of the financial year. Some of the investments which are eligible for deductions are like investment in LIC, mutual funds, PF, PPF, children education, NSC etc. In case you have not yet done your investment as pres