NRI-Income Tax Return

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This discussion clarifies whether Non-Resident Indians (NRIs) are obligated to file an income tax return in India. Generally, if total income from all sources in India is below the basic exemption limit (Rs. 2.50 lakhs), filing is not mandatory. However, certain high-value transactions, such as significant foreign travel expenses, large current account deposits, or substantial electricity bill payments, can make filing compulsory regardless of income level.

NK1976

NK1976 (Querist)
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04 July 2023 Dear Sir,
I want to know the answer of the following question.
Is it mandatory for NRIs to file income tax return in India?
Now the income is only from the interest of the savings account and there is no other source of income. He is now a US citizen. He has uploaded the return for the last ten years as NRI Status.

Please respond to the above.

Thanks & Regards
NK

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 July 2023 If the aggregate income in India from all the sources is less than Rs. 2.50 lakhs, filing income tax return would not be mandatory.

NK1976

NK1976 (Querist)
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04 July 2023 Ok, Thanks for Reply.
But could there be a problem in the future?
By not filing of return.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 July 2023 As such no problem would arise. In case of any query you can declare the your income was below the basic exemption limit. I presume, there are no other transactions as specified in seventh proviso of section 139(1) IT act, in which case it is mandatory to file ITR....
There are many types of transactions which have coverage under this Act. They include:

Total foreign travel expenditure surpasses Rs. 2 lakh.
Total current account deposits surpass Rs. 1 crore in either one or multiple accounts.
Payment of electricity bills surpassing Rs. 1 lakh. However, this is only applicable for the taxpayer himself or herself and not if he or she is paying bills for others in the family.
Other transactions of higher values as per the guidelines of the CBDT (Central Board of Direct Taxes).

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