Nri filing of itr

If you are an NRI, you would have to file your income tax returns for 2012-2013 if you fulfill either of these conditions:

- Your taxable income in India during the year 2012-2013 was above the basic exemption limit of Rs 2 lakh OR

- You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit.

Exceptions:

- If your taxable income consisted only of investment income (interest) and/or capital gains income and if tax has been deducted at source from such income, you do not have to file your tax returns.

- If you earned long term capital gains from the sale of equity shares or equity mutual funds, you do not have to pay any tax and therefore you do not have to include that in your tax return.

Form 15G applies only to resident Indians and not to non-residents. Moreover, while in case of residents, 10% TDS is deducted only when interest is exceeds Rs 10,000 in the year, in case of NRIs, TDS is deducted on every rupee of interest earned at the rate of 30% (15% in case Tax Residency Certificate is submitted from a treaty country.)

The income tax laws have defined a separate procedure. "Such persons must file an application under section 195(3) of the Income Tax Act to the jurisdictional tax officer to obtain a certificate of non-deduction or lower deduction of taxes, You must apply to the Income Tax Officer in your jurisdiction in India and if the Tax Officer grants you the waiver, you may submit this to your bank and claim TDS exemption.

"Granting waiver depends on the discretion of the Tax Officer and may or may not come through easily. So if you are faced with such a circumstance, it is best to file your tax returns and claim a refund of the TDS,

Remember that any claim for exemption from TDS will be available only if you have a Permanent Account Number (PAN), so make sure you have one.

regards,