Regarding filing itr of nri people
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 July 2013
Kindly suggest,
a person is residing in US from last 4 years, and had sent money from there to india, is he liable to pay tax in india, while the money sent is after paying tax to US govt?
a person is residing in US from last 4 years, and had sent money from there to india, is he liable to pay tax in india, while the money sent is after paying tax to US govt?
04 September 2013
In which account he is sending money. Is it NRO account or regular account. If it is in NRO account then no tax is payable and the interest is also exempted from tax and no return is to be filed
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Querist : Anonymous
Querist :
Anonymous
(Querist)
05 September 2013
No the money was transferred in Saving bank regular account.
1. Kindly suggest whether this money is to be mentioned against income of the person in ITR?
2. The amount which has been transferred is lent to someone in INDIA on interest.
a. Now the received interest is exempted or not?
a. If, No, Then if it is less then 2 lakhs (i.e.
exemption limit) whether ITR is to be filed?
Pointwise reply shall be greatly helpful.
1. Kindly suggest whether this money is to be mentioned against income of the person in ITR?
2. The amount which has been transferred is lent to someone in INDIA on interest.
a. Now the received interest is exempted or not?
a. If, No, Then if it is less then 2 lakhs (i.e.
exemption limit) whether ITR is to be filed?
Pointwise reply shall be greatly helpful.
20 July 2025
Here’s a pointwise answer to your query regarding NRI and income tax return (ITR) filing in India:
✅ Background Summary:
NRI residing in USA for 4 years
Money sent from USA to India, into a regular savings account
That money is lent to someone in India, and interest income is earned
🔹 Q1: Is money remitted from USA to India taxable in India?
Answer: ❌ No.
Money sent from USA (after paying tax there) is not taxable in India.
It is remittance, not income.
Therefore, it does not need to be shown as income in the ITR.
🔹 Q2: Is the interest earned in India taxable?
Answer: ✅ Yes.
Interest earned in India (even if from lending, not bank FD) is taxable in India for an NRI.
It is income accrued and received in India, so taxable under Indian Income Tax Act.
🔹 Q3: Is the interest income exempted if it is less than ₹2.5 lakhs?
Answer: ✅ Yes, subject to conditions.
If total Indian income is below ₹2.5 lakhs, no tax is payable.
However, filing of ITR is still recommended, especially if:
TDS is deducted by borrower
You want to claim refund
You want to disclose the interest formally
You want to avoid future tax notices
🔹 Q4: Is filing of ITR mandatory?
Answer:
Not mandatory if:
Total Indian income (including interest) is less than ₹2.5 lakhs
No other taxable income or TDS to claim
But highly advisable to file ITR (ITR-2) to:
Maintain a tax record
Declare Indian income
Comply with RBI/foreign remittance norms if applicable
✅ Background Summary:
NRI residing in USA for 4 years
Money sent from USA to India, into a regular savings account
That money is lent to someone in India, and interest income is earned
🔹 Q1: Is money remitted from USA to India taxable in India?
Answer: ❌ No.
Money sent from USA (after paying tax there) is not taxable in India.
It is remittance, not income.
Therefore, it does not need to be shown as income in the ITR.
🔹 Q2: Is the interest earned in India taxable?
Answer: ✅ Yes.
Interest earned in India (even if from lending, not bank FD) is taxable in India for an NRI.
It is income accrued and received in India, so taxable under Indian Income Tax Act.
🔹 Q3: Is the interest income exempted if it is less than ₹2.5 lakhs?
Answer: ✅ Yes, subject to conditions.
If total Indian income is below ₹2.5 lakhs, no tax is payable.
However, filing of ITR is still recommended, especially if:
TDS is deducted by borrower
You want to claim refund
You want to disclose the interest formally
You want to avoid future tax notices
🔹 Q4: Is filing of ITR mandatory?
Answer:
Not mandatory if:
Total Indian income (including interest) is less than ₹2.5 lakhs
No other taxable income or TDS to claim
But highly advisable to file ITR (ITR-2) to:
Maintain a tax record
Declare Indian income
Comply with RBI/foreign remittance norms if applicable
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