FSI schedule for NRI Indians

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This discussion clarifies whether Non-Resident Indians (NRIs) need to declare income earned outside India using the FSI schedule in their tax returns. The consensus is that if you are an NRI and your salary is earned entirely outside India, with no income received or accrued in India, you are not required to fill out the FSI schedule. Foreign income is generally not taxable in India for NRIs unless it is received or deemed to accrue in India.

Parth Shah

Parth Shah (Querist)
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07 August 2021 Hi,

Does a Non-Resident Indian need to declare their income earned out of India?

I have been working as a Software developer out of India since Oct-2019 and have not visited India since then. Per my understanding, I would be considered as an NRI for indian tax filing for current AY 21-22. When I am trying to fill ITR2 on the new portal and I select the Status as 'Non-Resident', the schedule FSI gets unchecked and I am not asked to provide the details for my income earned out of India. Is this expected? or should I still somehow declare the foreign Salary income?

Please let me know. Any guidance is appreciated.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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07 August 2021 Your foreign salary is not taxable in India. Hence no need for you to fill FSI schedule.
This schedule applicable for residents having foreign sources of income.

ANJANA MURALEEDHARAN

ANJANA MURALEEDHARAN (Expert)
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07 August 2021 You are NRI, So only Indian Income is taxable in India. If you are not receiving any salary in India on the services rendered outside India then, you are not required to show foreign salary income in ITR. Only the income received or accrued or deemed to accrue in India is taxable india.Based on your limited information you are not required to fill FSI schedule.

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