 Why a NRI should file the return of income |
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To claim refund in case where:
TDS is Deducted on |
Reasons for refund |
Interest Income from NRO account @ 33.66% |
There is no tax on Income up to Rs 100,000
Applicability of DTAA:
Interest on NRO is deducted at 33.66%. But the tax deductible as per the Double Taxation Avoidance agreement may be much lower |
Capital Gains @11.22% or 22.44% or 33.66% but |
Capital loss can be set off against capital gains. Tax can be saved by reinvestment of the long term capital gains in specified investments |
All Income other than long term capital gain @ 33.66% |
There is no tax on Income up to Rs 100,000 |
While calculating the actual tax liability, surcharge of 10% on tax is payable only if income exceeds Rs 1,000,000 after enactment of the Finance Bill, 2005.
However, in any case NRI must file the return of income where his income exceeds minimum exemption limit (Rs.100,000 after enactment of Finance Bill, 2005).
Returning Indians
A Returning Indian needs to plan his return to India. For the purpose, he needs advice / information on various aspects of Tax Laws / FEMA, 1999. Vikalpa can guide you on the issues such as:
- What is your residential status under:
- Foreign Exchange Management Act, 1999
- The Income Tax Act, 1961
- Planning the date and month of return to India so as ensure minimum tax liability in the year of return (i.e. April to March)?
- Holding and operating of non-resident Banking accounts on your return to India and Taxability thereof.
- Holding of assets in and outside India / earning income in and outside India and its taxability?
- Benefits of Double Taxation Avoidance Treaty, if any applicable
Plan you smooth return so as to avail maximum benefits offered to NRIs.
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