Hi,
My questioon is 1) Can Non resident Indian file return with resident status?
If No, then what are the consequancies? How IT dept, come to know about that person is either resident or non resident,
2) Can NR file return with NR status having resident bank account (not NRO bank account).
Thanks in advance.
1) Filing of income tax return with incorrect particulars is a punishable offence. In case the case of your client gets selected in scrutiny and AO calls for passport entries for verification, residential status can be easily established. Why do you want to take such risks?
2) Even if residential status is NR, disclose resident savings account details also. Having resident account after becoming NR is a FEMA offence, not under ITA - however, ask client to immediately take steps to re-designate account as NRO.
Thank you Abhinavji for your reply.
I have some questions after reading your reply:
1 ) if non resident who had filed his return as resident in last 2-3 years, can file as non resident status from the current year? Is there any requirement to declare as NR before filing the return? Or directly in the return is valid?
2) If that person now file as NR, and his account is still as resident, can IT charege any penalty? What about FEMA penalty?
Thank you so much.
CAclubindia
