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Return of income by nri

10 July 2012

Dear friends,

My client is a NRI. now he wants to file income tax return in india voluantarily. He has no other income in india. Plz advice me which ITR form is applicable to him and in which source should he show his income?

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5 Replies

Ranjeet Bisht (Proprietor) (22 Points)
Replied 10 July 2012

Friend,

You must check his residential status for filing the return and arter the file income tax return,

pls clarify the source of income.

Regard

Ranjeet Bisht.

ANUBHAV VISHNOI (-) (150 Points)
Replied 12 July 2012

mr rajneesh, i have already mentioned that client is nri and he has no source of income in india but he wants to file roi in india voluantarily.

thanks

Tejas Jain (Chartered Accountant) (314 Points)
Replied 13 July 2012

How can the "return of Income" be filed without Income.....? For filing the Return there has to be an Income taxable in India...

Gkumar (project manager) (72 Points)
Replied 13 July 2012

There are various issues here

a) Why an NRI wants to file informational return. But ,putting that aside, other issues are:-

b) Is he resident or non resident for tax purposes. If he is non resident, then filing return is meaning less, especially when there is no India income.

c) If he is resident by Indian laws, even then the Tax Treaty will determine his final residency for taxes. If by tax treaty he is found to be resident of India, then he has to pay tax in India on his global income and may get credit in his host country.

For most NRI's it is better to retain the non resident status (if they have one) and take shelter in Tax Treaty if one is favorable. For example, if NRI is earning dollars in USA, his tax obligation in US will be much lower than in India. Please do the math.

If he is NRI for a short duration, then he has to file India taxes for his global income. Many techies who go to West on short assignment end up filing taxes ib two countries.

girish kumar

ANUBHAV VISHNOI (-) (150 Points)
Replied 13 July 2012

actually my client wants to take loan from an indian bank thats why he wants to file return of income in india .Although he has some bank interest in his indian accounts for last financial year. can he file itr-2 showing bank interest income under the head income from other sources?