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NRI INCOME TAX

09 July 2019

My friend earns from ship in abroad. He is an NRI in A.Y - 19-20. His income from abroad is more than 2.5 lakh. His all income credit in a NRE Bank Account. He has some fixed deposit in India from which some interest he earns and a savings account in India. His interest income from savings and fd is less than 2.5 lakh. Is he liable for Income Tax filling for the A.Y 19-20.

please solve my problem.

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4 Replies

Krishna Chaudhary (Accountant) (4531 Points)
Replied 10 July 2019

first we need to see the status of the person in the previous year not in assessment year.so if the person is non resident Indian in the previous year then he will not liable to pay tax on the income earned by his employment outside India but he to pay tax on interest of FD accrued in India.about interest on savings bank upto 10000 will be exempted above that istaxable at normal rate.

Samrat Karar (110 Points)
Replied 10 July 2019

Yes he is Non resident in F.Y 18-19. But his income from fd and savings in india is less than basic limit of taxability. Does he need to file Income Tax return?

Suresh Thiyagarajan (Student) (3986 Points)
Replied 10 July 2019

1. If the assessee's income does not cross Rs. 2,50,000 during the previous year, then no need for filing IT return. This rule also applies to NRI.
2. Since he is a Non-resdient during the PY, his Indian income alone will be subject to tax in India. His global (income from ships) income will not be taxable in India.
3. Since his income gets credited in Non-Resident Rupee(NRE) Account, it will not be subject to tax in India.
4. In a nutsheel, your friend need not file IT return if his Indian income is below Rs. 2,50,000. However, if TDS was deducted on any of his interest income and the same is reflected in the form 26AS, I would advise him to file IT return to claim the proper refund and to avoid any mishap in the future date.
Please correct me if the above solution has an alternative view.

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