Nil income of nri - it return to be filed?

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This query is : Resolved

Ronnie fernandese (Querist)

10 February 2019 I am NRI, now USA national. I earn not even Rs hundred interest on minimum balance required in NRO a/c. Bank deducts about Rs 50 TDS. Shall I write to IT that henceforth I will not file return due to non-taxable income? Will my application absolve me from any punitive action by IT authorities? Or, shall not file returns & keep quiet? I thought that giving letter in writing to this effect will be better. Please advise. I do not want to apply for refund of tds.

Amol S Joglekar

Amol S Joglekar (Expert)

10 February 2019 If you are USA national, then you can be NR(Non Resident) and not NRI(Non Resident Indian). Of course I understand that that is not the issue.
You need not file the income tax return.
By the way, do you have Indian PAN (Permanent Account Number)?
If yes, then please me know the name of your bank which is deducting TDS to the tune of INR50 when you have interest income not even INR100.

Ronnie fernandese

Ronnie fernandese (Querist)

10 February 2019 Yes. I have PAN No. My banker deducts 30% of saving a/c interest (Rs 34 on Rs 109 gross). Is it better to send letter to IT authorities that I will not be filing returns due to non-taxable income?

Z (Expert)

10 February 2019 NRO accounts are subject to deduction of tax at source, and there is no minimum threshold below which the tax shall not be deducted.
If your income does not exceed the maximum amount not chargeable to tax, then you do not need to file the return.

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2019 01. if you are interested in getting the refund of TDS, then do file the return. Else just keep quiet. No need to file the return.
02. If you want to keep your Indian PAN active, you need to file the return.
Please let me know your views.

Message likes : 1 times

Ronnie fernandese

Ronnie fernandese (Querist)

11 February 2019 Thanks a lot Mr. Joglekar. I do not want TDS refund. PAN will have to be kept for any future remittance. I do not wish to surrender PAN card at present. My main point is that is it better to write to IT Officer (copy to be endorsed) that henceforth, I will not file returns due non taxable income? If I will keep quite then sometimes in future they might keep raking up the non-filing issue again and again.

Amol S Joglekar

Amol S Joglekar (Expert)

11 February 2019 In order to keep your PAN under "ACTIVE" status in income tax database, you do file the income tax return, even though the income is well below the taxable limit.

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