Resident assessee's IT return ..only having foreign income

Hey Ramesh, here’s how your brother can approach this:

Situation Recap:

• Your brother was abroad (Myanmar) from 2016 till August 2019.

• He came back permanently in August 2019, became Resident & Ordinarily Resident (RoR) in India for FY 2019-20 (AY 2020-21).

• He received salary and gratuity from the overseas company till August 2019.

• He didn’t file his Income Tax Return (ITR) for AY 2020-21, assuming no Indian income.

Key Points:

1. Residential Status:
   Since he returned to India in August 2019 and stayed more than 182 days in FY 2019-20, he’s a resident for AY 2020-21.

2. Global Income Taxability:
   As a resident, global income (including foreign salary and gratuity) is taxable in India.

3. Filing ITR for AY 2020-21 Now:

   • The due date for filing ITR AY 2020-21 was 31st March 2021 (generally).

   • The Income Tax Department allows filing belated return u/s 139(4) up to the end of the relevant assessment year, i.e., 31st March 2021 for AY 2020-21.

   • Since that date has passed, filing ITR for AY 2020-21 is no longer allowed normally.

4. Remedy Options:

   • Approach the Income Tax Department for condonation of delay (rarely granted).

   • File a Petition with the Commissioner of Income Tax (CIT) (Appeals) for late filing (can be tried, but no guaranteed success).

   • If there is any outstanding tax liability, there may be penalties and interest.

5. Alternative Actions:

   • If no tax was due or tax was already paid correctly (e.g., via TDS), the damage is minimal.

   • For future years, file the returns timely.

6. Legal Help:
   It’s advisable to consult a tax professional or Chartered Accountant who can examine facts, amounts involved, and suggest best course, including whether to approach the IT authorities for condonation.

Summary Advice:

• Since AY 2020-21 return filing window is closed, your brother cannot file ITR normally now.

• He can consult a CA to explore options for late filing application or if any penalty can be minimized.

• Ensure future compliance to avoid complications.