As a Non-Resident Indian (NRI), filing income tax returns may seem difficult, but you can get through the process easily with the right help. In this blog post, we’ll walk you through filing your income tax returns in India as an NRI.
Ascertain Your Residence Status
- Capital gains from the sale of assets or property in India
- Interest income from savings accounts, fixed deposits, or other investments in India
Collect Necessary Documents
Gather all the required documents before you start filing your tax returns. You will need:
- Your passport to prove your NRI status, To begin with, you must ascertain your residence status for the fiscal year. Regarding NRI taxation in India, your residential status is quite important. If, during the fiscal year, you spent less than 182 days in India, or if you spent less than 60 days in India during the financial year and less than 365 days in the four years prior, you are eligible to become an NRI.
- Recognize Your Income That’s Taxable.
- The only income you must pay taxes on as an NRI is what you made or accumulated while living in India. NRIs in India are subject to taxation on the following categories of income:
- Income from India
- India’s Property Rental Income
- Gains from selling property or other assets in India
- Fixed income from savings accounts, interest. You must file ITR-3 if you have income from a business or profession. Make sure you select the appropriate form based on your income sources.
Register On The Income Tax Department’s E-Filing Portal
Visit the Income Tax Department’s e-filing portal and register yourself. Enter your login information if you already have an account. For communication purposes, ensure your profile is updated with the right email address and mobile number.
Complete the Information on the ITR Form.
From the e-filing portal, download the applicable ITR form. Enter all necessary data, such as your personal information, income information, and tax deductions. Make sure you declare all of your income received in India correctly and take advantage of any deductions available to you under sections 80C, 80D, and so on.
Demand Restitution In line with DTAA (if appropriate)
You may be able to obtain relief from paying taxes twice on the same income if your country of residence and India have a Double Taxation Avoidance Agreement (DTAA). You will need to provide details of taxes paid in your resident country and the relevant DTAA provisions while filing your returns.
Verify And Submit Your Return
After filling in all the necessary details, verify the information thoroughly. To facilitate contact, make sure your profile has the most recent versions of your email address and mobile number.
Complete the ITR Form’s details.
Utilize the e-filing portal to obtain the pertinent ITR form. Provide all the necessary information, such as your personal data, income information, and tax deductions. Make sure you correctly declare all of the money you have made in India and that you have claimed all of the deductions that you are entitled to under sections 80C, 80D, etc.
Require Relief If relevant, under the DTAA
If your home country and India have a Double Taxation Avoidance Agreement (DTAA), you may be able to take advantage of this agreement’s relief to avoid having to pay taxes on the same income twice. Details of taxes paid in your nation of residence as well as the applicable DTAA rules must be provided.
Conclusion
Understanding your residency status, income sources, and relevant tax rules is essential while filing income tax returns in India as an NRI. By following the steps outlined above—determining your residential status, understanding your taxable income, gathering necessary documents, choosing the correct ITR form, registering on the e-filing portal, filling in details accurately, claiming relief under DTAA if applicable, verifying and submitting your return, and tracking your refund status—you can efficiently manage your NRI taxation in India with Mc Maheshwari.
