Tax filing for NRI who spent half the year in India

I was in India last year till August and then moved to the US for higher education. However, I was working in India till May and I have form16 for the same. In addition I liquidated shares which generated capital gains and traded options which generated business gains. Now I have to file ITR for 2021-22 before the July deadline. I have already filed my return in US which was on the basis of the income generated in the US.

How do i proceed with filing my tax in India? Do I file it this time the way I used to earlier?

Replies (4)
Quick Summary
This discussion addresses tax filing for NRIs who spent part of the year in India and part in the US. It clarifies that if your total Indian income isn't solely from investments, you'll need to file an ITR for income earned in India. Your residential status for FY 2021-22 will be 'Non-Resident' due to your stay and tax payments in the US. The process is similar to previous filings, but you'll select 'Non-Resident' status. Deductions for rent paid while unemployed in India may also be claimable.

An NRI is not required to file an income tax return in India while having income in India, only if the specified condition is satisfied. The specified condition is that the NRI's total income in the financial year should consist only of investment income.

Your Income Tax Return will depend upon your residential status, whether you were in India for more than 182 days or not. As mentioned, you were in India for less than 182 days, so you will not be a resident for FY 2021-22. You will only be liable to taxes for income earned and received in India.  

Further, although your stay in India is more than 120 days but  since you were already paying taxes in the US so you will not be liable for global income and will be treated as a Non-Resident for FY 2021-22. 

File your IT returns with the income earned during the FY 2021-22 like in previous years; You will only mark your residential status as Non-Resident instead of a resident. Rest all will be the same mostly. 

Thank you very much. This is very helpful.

 

Another question. I was unemployed in Jun and July 2021 and was still paying rent on my apartment. How do i claim the deduction for this?

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