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 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 Dec 31, 2020 (Mid Oct 2020 Changes By FM India). For Audit ITR this date is extended upto Jan 31, 2021.
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.
Further to this, wef FY 2020-21, new tax slab option has also been provided in the Indian Tax System. As per new tax slab system, one can forego certain exemptions and deductions and claim lower rates of taxation on his income. Here are more details about new tax slab system effective from FY 2020-21. Hence, in the ITRs being filed now for FY 2020-21 (and thereafter years), this new tax slab scheme can be adopted.
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.
- BASIC IMPORTANT INFORMATION FOR NRI ITR
- WHAT ARE BENEFITS FOR NRIS TO FILE ITR IN INDIA
- NRI INCOME TAX SLAB RATES IN INDIA
- NRIs OCIs NEW INCOME TAX SLAB OPTION WEF FY 2020-21
- HOW TO FILE ITR FOR EARLIER YEARS AND CLAIM REFUND IF ITR FILING NOT DONE YET
- WHAT ARE PENAL PROVISIONS AND CONSEQUENCES IF ITR IS NOT FILED IN INDIA
- WHAT ARE DOCUMENTS AND INFORMATION REQUIRED BY NRIS FOR FILING ITR IN INDIA
- WHAT IS THE ITR FILING PROCESS FOR NRI ITR IN INDIA