Income Tax Return (ITR)

Background

Income Tax Return Filing in India is an annual compliance, which is to be complied by all taxpayers. Non-residents are not an exception for this. For Non-residents (NRIs, PIOs, OCIs, Foreign Citizens), ITR Filing is more important. Also, Non-residents are more compliant for their duties in relation to tax compliances etc. Here are some important things in relation to Non-Resident ITR filing in India.

 

Components of Non-Resident ITR

Non-residents generally have following kind of income which is taxable in India:

  • Interest Income From Bank Account (NRO, NRE Accounts)
  • Rent From House Property
  • Capital Gains From Sale of Mutual Funds, Shares
  • Dividend income from Share, Mutual Funds (taxable wef FY 2020-21) (Amendment via Budget 2020)
  • Capital Gain from sale of Property

 

Process of Filing ITR

ITR filing process includes following steps:

  • Gathering all the documents needful for ITR preparation
  • Preparation of ITR Computation (self or with the help of tax expert)
  • Payment of taxes (if payable)
  • Preparation of ITR Form and Submission of same with IT Website (self through ITR Filing website or with the help of tax consultant)
  • ITR V Verification (online e-verify or offline by sending ITR V hard copy to CPC)

 

Due Date

Due date of ITR filing in India is July 31 of Assessment Year for Non-Audit cases (generally applies to all Non-Residents). E.g. If ITR is to be filed for FY 2019-20 then due date will be July 31, 2020. This date has been extended to Nov 30, 2020 by the Finance Minister recently. Hence, the extended due date for filing FY 2019-20 is Nov 30, 2020 (Mid May 2020 Changes By FM India).

 

Income Tax Rates or Tax Slabs

Income tax rates are the rates at which income is taxable. In India, for Individuals (including NRIs, Non-Residents, Foreign Citizens, Expats), these rates vary as per their taxable income. Hence, there are Tax Slabs in India for Individuals, at which tax is levied on their Total Income. Yearly Tax Slabs rates are hereunder.

 - FY 2018-19 and FY 2019-20 Non-Resident or NRI Income Tax Slabs

 

Benefits of Filing of ITR

Why NRI should file ITR in India. There are lots of benefits for NRIs to file ITR in India. In this link, benefits of ITR filings can be understood in more details BENEFITS FOR ITR FILING IN INDIA.

 

Relevant Terms and Information For ITR

There are lot of information, which a Non-Resident (NRI, Foreign Citizen, OCI, Expat, PIO) must know in relation to his ITR filing in India. Here are some important information in relation to latest ITR (FY 2019-20), which Non-Resident, NRIs must go through before filing of their ITR.

 

More On Non-Resident ITR In India

Here are links for more information in relation to NRI ITR Filing in India.