What Information is required for NRI Tax Return Filing in India?

 

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 stay in India during previous year as well as last 4 years. Further, finance act 2020 has also introduced the concept of deemed residency in India.

 

All the aforesaid factors shall be kept in mind for the purpose of NRI Tax return filing in India.

 

b)      Types of Income which are taxable in India and need to be shown in NRI Tax return

 

Following types of incomes of NRI are normally shown as taxable while filing NRI Tax return in India:

 

a.       Salary received in India or

b.      Salary for services rendered in India

c.       Rental income from house property located in India

d.      Income from sale of any capital assets situated in India

e.      Interest on Fixed deposits or saving accounts in India

f.        Interest on NRO accounts

g.       Dividend received from Indian company’s share or mutual funds

Interest earned on FCNR or NRE account is exempt and not taxable in India

c)       NRI should have following documents in His possession before filing NRI Tax return in India:

 

a.       For salary income, copy of employment contract, copy of form 16 and/or salary slips

b.      In case of rental income, copy of rent agreement and/or rent receipts

c.       In case of Interest on FDR, copy of interest certificate or form 16A received from the bank

d.      In case of interest on NRO account, copy of bank statement

e.      Details of all the permissible investments under section 80C

f.        In case of sale of any property in India, copy of sale deed, purchase deed.

g.       For sale of shares and mutual fund, statement of transactions date wise, script wise and quantity wise

Above are the list of some of the preliminary information required for the purpose of filing NRI Tax return in India.

In case you require any information or clarification, you may contact EzyBiz India at www.ezybizindia.in or call at +919899217778

Location: India

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