Frequently asked questions
1. Why should an NRI file a return?
NRI is required to file an Income tax return when he has any income that is accrued or has been recieved in India. Filing of return is compulsory so as to avoid double taxation i.e.taxation in two countries or to claim tax refund if your income is in the exemption limit(i.e. Rs.2,50,000). For example- Fees for Technical Services or Royalty recd. from a business established in India, Income from transfer of Capital Asset situated in India etc.
2. Whether I should file a normal return or an NRI return?
This depends on your residential status. In most cases, if you are in India for 182 days or more during that financial year, you will be considered a resident. If you are a foreign national living within India, you may be considered a ‘Resident Indian’for tax purposes So, if you are a Resident, then you are required to file a normal tax returm otherwise else an NRI return.
3. What is DTAA? How can I avoid Double Taxation?
DTAA(Double Taxation Avoidance Agreement)is an agreement in between India and other countries so as to avoid double taxation of the same income of the same person in more than one country. Double taxation can be avoided through DTAA which determines whether an Income taxable in two countries is to be exempted or to be taxed at a lower rate or else to be allowed tax credit For this, you are required to provide us with the Tax Residency Certificate(TRC) issued by the country where you presently reside.
4. What is the difference between an NRI return and normal return?
NRI return is to be filed by NRI or foreign nationals who has any income taxable in India and the resident who has any income from outside India while Normal Return is that return which is to be filed by residents who only have Indian source or receipts of income.
5. How can LegalRaasta team help me in return filing?
LegalRaasta team will provide you with experienced and professional CAs who would be having expertise in taxation of foreign income and they will help you in tax savings, avoiding double taxation and helping Indian residents in declaration of inome from foreign assets/bank accounts.
6. Why is a person holding foriegn stocks/ assets required to file NRI return?
A person holding foreign stocks/assets is required to file NRI return so as to avoid double taxation, penalties and to claim tax refund, if any.
7. When am I not required to file any return?
You are not required to file any return when your income consist only of investment income or income by way of Long term Capital Gains from foreign exchange specified asset or both and TDS has been deducted from such income.