NRI AND NRO'S

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Querist : Anonymous

Querist : Anonymous (Querist)

06 February 2011 Pls let me know if an NRI have interest form NRO account saving or fd form that subjected to tds as 30 to 33% pls advise on the following

1) is that correct NRI must file IT R if total income exceeds the limit in a particular as the same case on residence Indian?
2) all deducted tds shall be refunded if no tax liability for a particular year and tax to be paid as the same residence Indian.
3) is the only income from earned from in India to shown in the income tax return i.e salary and other amount in foreign country not to be shown?
4) are deductions are applicable as residence Indian? i.e premium paid for LIc. Do fresh tax saving FD’s and so on.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 Q. 2) all deducted tds shall be refunded if no tax liability for a particular year and tax to be paid as the same residence Indian.

Ans . Yes

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 Q. 3) is the only income from earned from in India to shown in the income tax return i.e salary and other amount in foreign country not to be shown?
Ans. Yes. Only he has to show his status as NRI.
Further, I have not seen any column except
Schedule :EI in the return ,where Foreign income of NRI can be shown. It is a better compliance if you show such exempt income in this Schedule.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 4) are deductions are applicable as residence Indian? i.e premium paid for LIc. Do fresh tax saving FD’s and so on.
Ans . Yes. Deduction U/s 80C is available.
Fresh investments can be made from explained sources of income.

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Juzer Sadikot

Juzer Sadikot (Expert)
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06 February 2011 1. Yes, however, NRIs have special exemption from filing ROI irrespective of amount of NRO Interest Income earned provided:

i) He has funded NRO Deposits from NRE Accounts or from Foreign Inward remittance (you need to check this condition),

ii) Tax is deducted at appropriate rate (in your case, 30.9% is appropriate rate and you qualify with this condition)

iii) He does not have any other Income taxable in India (he is only earning Investment Income and LTCG as prescribed under section 115C). (I understand that you do not have any other income taxable in India and so you may be qualifying this condition)

2. Yes, but maximum amount not chargeable to tax shall be Rs. 1.6 lacs for Non resident male/Female/Senior citizen.

3. Yes, even no need to show Income earned outside India as exempt Income as it doesn't fall under the scope (section 4) of Indian Income Tax and needless to say more.

4. Yes, even any money paid for life insurance contract outside India is eligible for deduction u/s. 80C.

Should you have any query, write me.

Best Regards
Juzer
ca.juzer@gmail.com

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Juzer Sadikot

Juzer Sadikot (Expert)
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06 February 2011 You may track your obligation from filing Return of Income from my Utility Track your Filing Return of Income obligation.

http://www.mediafire.com/?7rbbopw2b0tl26f

Juzer

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Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011 Dear Bafna and Juzer

First of all thank you very much of both of you!!!

i have one more question as follows:
if i funded NRO Deposits from NRE Accounts or from Foreign Inward remittance and go for
say a single fd for 1 year amount 30 lac at todays rate 8.5% pa roughly Rs 25500 accrued interest where i understand have to file income tax return and pay tax RS 9785 for the year maturity i have RS 3245215 including interest and deducting the tax now my question is that if this all fund P+I can be transferred back to NRE account where it was originally funded.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011 Lastly , if i have a gift say a few lacs from mom resident indian can be funded the NRO account ? if so any tax issue?

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2011 lastly , if i have a gift say a few lacs from mom resident indian can be funded the NRO account ? if so any tax issue?

CA PARAS BAFNA

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07 February 2011 Transfer from NRO A/c to NRE A/c is not allowed, in my view. In NRE A/c you may remit fund from outside India only.

Your mom can gift you and the amount can be deposited in NRO A/c . You have to check interest amount and for claiming TDS amount you have to file return.

Pl. Wait for Juzer's comments.

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