Query on Taxability for Non-Residents

Hello all!

My uncle is a Non-Resident in 2018-19.

He has transferred Rs.10 lacs from his NRE Bank account for the payment towards the LIC Premium.

He is resident in India from 2021 onwards.

Is he required to Pay tax for the abovesaid transaction and file Income tax return for 2018-19?

Please solve this.

Replies (5)
Quick Summary
This discussion addresses whether a non-resident (NRI) is liable for tax on a Rs. 10 lakh LIC premium payment made from an NRE account in 2018-19. The consensus is that if the funds were remitted from outside India and the individual was an NRI during that financial year, the transaction is not taxable in India. It also clarifies that an ITR filing obligation for that year depends on whether any Indian-sourced income exceeded the exemption limit.

No. Not for the transaction of 2018-19, as he remains NRI for the relevant year.

Thank you for your reply, sir!

Yesterday, he received a notice from IT Department stating that,

His transaction in 2018-19 is Rs.10 Lacs and the reason for non-filing of IT Return for the year 2018-19.

As he is a non-resident for the year 2018--19, he is not required to file ITR.

Is it sufficient to reply to IT Department regarding his Residential Status?

Please reply. 

Taxincidence arises only on incremental income which arises which is invested in India.

Hello mam

Thank you for your reply. 

He is just paid premium towards his policy 

This is not yet matured. 

Then it is not taxable income right? 

 

Not just being nonresident, but if the premium was paid through NRE account, which should have been remitted from out of India, As such the amount would not be taxable in India. If your income earned/accrued in India (for AY 2018-19) be below exemption limit, there was no need to file ITR.

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