When is it mandatory for an NRI to file an ITR in India?

March 23, 2024

Many individuals find themselves unsure about whether they should file their Income Tax Return (ITR) when they are Non-Resident Indians (NRIs).

All Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), or Overseas Citizens of India (OCIs), are recommended to file an Income Tax Return (ITR) when they have taxable income in India.

Making ensuring your income tax return is submitted correctly takes a lot of time and effort. Before you can start filing your income tax returns you have to find a tax consultancy that are trustworthy and provide quality services. As the leading Income Tax Return Filing Agency in Kochi, Kerala, Chennai, we at Emblaze will delve through your financial portfolio and double-check all of your income and savings. We can also advise you on how to manage your financial portfolio successfully.

You are considered an Indian resident for a financial year if you satisfy any of the conditions below:

> If you’re an NRI and staying in India for alteast 6 months.

> If you have spent a total of 60 days or more in India during the previous year and have resided for at least 365 days in the past four years, you are considered an Indian resident for that financial year.

For Indian citizens employed overseas or serving as crew members on Indian vessels, only the first condition applies. Thus, residency is established when they spend a minimum of 182 days in India.

Similarly, for Persons of Indian Origin (PIO) visiting India, only the first condition is relevant; the second condition does not apply to them. A PIO is defined as an individual whose parents or any of their grandparents were born in undivided India.

If none of the above conditions are met, the individual is classified as a Non-Resident Indian (NRI).

Is my Income earned abroad taxable?

An NRI’s income tax depend on the residential status of the year. If your status is resident, then your global income is taxable in India. If your status is NRI, then the income earned in India only is taxable.

> Income earned outside India is not taxable.

> Income earned or accrued in India includes salary received in India or for services provided in India, income from a house property situated in India, capital gains from the transfer of assets located in India, and income from fixed deposits or interest on savings bank accounts in India. These types of income are taxable for Non-Resident Indians (NRIs).

Some of the other taxable incomes include as below:

> Income from Business and Profession

> Rental Payments to An NRI

> Income From House Property

> Income from other sources like FD held in Indian bank accounts.

How About A Tax Expert Help You With Your IT Returns?

If your financial situation is complex with multiple income sources, investments, or deductions, a CA’s expertise can ensure accurate filing and maximize potential refunds. You can consult with Emblaze, best ITR Filing Agency in Kochi, Kerala, Chennai to get your ITR filed easily and accurately.