How to file income tax by NRIs
Chhota CFO20 Heinä 2021

How to file income tax by NRIs

Essential points while filing income tax returns by NRIs:

1. The residential status of an NRI must be specified when it comes to ITR.

When filing ITR, NRIs must identify their residence tax status in India based on their time of stay throughout the fiscal year.

2. Selecting the correct ITR return form for NRIs

The ITR-1 form was created by the Indian government to make compliance saiser for taxpayers in the country. NRIs can also use the ITR-1 form to file their tax returns.

3. Aadhar number is not compulsory for NRIs

According to the Central Board of Direct Taxes, NRI citizens living in India are not required to include their aadhaar numbers while filing tax returns.

4. Include accurate assets and liabilities in ITR

NRs with a total of more than INR 5 million must report the cost of certain assets in India, as well as their associated liabilities, according to the assets and liabilities table.

5. It is optional to disclose a foreign bank account in ITR

Non-residents or non-citizens of India need not to declare details regarding their foreign bank account in ITR, if they do not claim a tax refund, according to a CBDT statement dated july 24, 2017.

6. Filing ITR is compulsory in case of exempt long term capital gain (LTCG)

Non-resident citizens should be aware that if their exempt LTCG income exceeds the basic tax exemption ceiling of INR 250,000 they must file an ITR, even if their total taxable income is less than the tax threshold limit.

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