ROI
This query is : Resolved
22 February 2011
is it mandatory or obligatory for NRI being india citizen having total income 2million ??? even Though as per IT act foreign income of NRI is fully exepmted..!!
23 February 2011
Foreign income and not Indian Income is exempt under the Act, so if there is any foreign income then deposit taxes and file return in india.
23 February 2011
yes i know know only foreign income exempted from tax.. that's y i m asking foreing income 2 million...
is it mandatory or obligatory to file reutrn of income... If no then while final exit from abroad how the NRI can satisfy income tax official regarding money in his account??
is it mandatory or obligatory to file reutrn of income... If no then while final exit from abroad how the NRI can satisfy income tax official regarding money in his account??
22 July 2025
Great question! Here’s how it works for an NRI with foreign income of ₹2 million:
Is filing income tax return (ITR) mandatory for NRI with foreign income only?
If your total income (which includes Indian income and foreign income) exceeds the basic exemption limit (₹2.5 lakh for individuals below 60), then filing ITR is mandatory.
But foreign income of an NRI is exempt from Indian tax under the Income Tax Act. So if your only income is foreign income, and you have no taxable income in India, filing ITR is not mandatory.
What if you have foreign income but no taxable Indian income?
No tax is payable in India on foreign income for NRIs. So no need to file a return unless you have taxable income in India (like rental income, capital gains in India, etc.) exceeding the exemption limit.
How to satisfy Income Tax officials on Final Exit or when asked about foreign funds?
When you do a final exit or when asked by tax authorities, you can show:
Bank statements showing foreign income credits
Tax residency certificate (if applicable)
Documents showing your foreign earnings and taxes paid abroad (if any)
Declaration that foreign income is exempt in India for NRIs
If no taxable Indian income and no tax liability, usually no ITR is needed, but if officials insist, you can file a ‘Nil’ return showing exempt income.
Summary:
No, NRIs with only foreign income (exempt in India) and no taxable Indian income are generally NOT obligated to file ITR.
But if you want to maintain clear records or for final exit procedures, you can file a return showing nil taxable income or keep documents ready.
Is filing income tax return (ITR) mandatory for NRI with foreign income only?
If your total income (which includes Indian income and foreign income) exceeds the basic exemption limit (₹2.5 lakh for individuals below 60), then filing ITR is mandatory.
But foreign income of an NRI is exempt from Indian tax under the Income Tax Act. So if your only income is foreign income, and you have no taxable income in India, filing ITR is not mandatory.
What if you have foreign income but no taxable Indian income?
No tax is payable in India on foreign income for NRIs. So no need to file a return unless you have taxable income in India (like rental income, capital gains in India, etc.) exceeding the exemption limit.
How to satisfy Income Tax officials on Final Exit or when asked about foreign funds?
When you do a final exit or when asked by tax authorities, you can show:
Bank statements showing foreign income credits
Tax residency certificate (if applicable)
Documents showing your foreign earnings and taxes paid abroad (if any)
Declaration that foreign income is exempt in India for NRIs
If no taxable Indian income and no tax liability, usually no ITR is needed, but if officials insist, you can file a ‘Nil’ return showing exempt income.
Summary:
No, NRIs with only foreign income (exempt in India) and no taxable Indian income are generally NOT obligated to file ITR.
But if you want to maintain clear records or for final exit procedures, you can file a return showing nil taxable income or keep documents ready.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Opting our of sec 44AD
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Multiple trade mark
- Transporter Declaration form
- FORM 26A APPLICABILITY
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
