08 June 2023
An US citizen residing in India for more than 8 years. She filed IT returns regularly showing her interest income more than 10 lacs and after claiming deductions u/Ch.VIA. Last year she made an investment in NRI deposit a/c. from where she received interest after deducting TDS at 31.2%. She also receiving interest from non-NRI a/c in India also. She purchased a residential house in India from the money transferred from US account. So, please advise me 1) How she have to disclose her US citizenship in IT return? 2) Is there any different slab of tax is applicable ? 3) Where to inform about purchase of residential house purchased from US a/c.? 4) Can she claim deductions u/ch. VIA?
09 June 2023
1 Citizenship is not disclosed in ITR only residential status is disclosed. It's taxed based on residential status. 2 No different slabs. 3 Confirm you are a PIO. Being resident of India you can buy the house in India no need to inform anyone. 4 yes such deduction can be claimed. Your US income is taxable in India. Check it's disclosed in earlier filed ITR.
09 June 2023
She earns only interest on FD income over 10lacs in India and pay tax and files ITR regularly. Again she files tax forms in USA on her US income only. No where she shows her other country income. She never transfer money from or to other country. Only this time she brought money from USA for purchase a residential house in India. Please advise me whether she is doing the right thing? Or she have to report her income both the country Tax Forms. She files ITR-1 every year.
10 June 2023
She is not doing the right thing. Being resident of India she has to file ITR in India including US income. Relief on US tax can be claimed if any tax is deducted in US. ITR 2 has to be filed.