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Taxation of nris

Tax queries 264 views 3 replies

Dear Sir,

My sister is an NRI and earning in UK where Income Tax is being deducted as per their rules. She has interest income in India on which the Banks have deducted TDS @ 10%. Can she claim refund the Income Tax deducted by Bank in India by filing Income Tax Return in India. Is she required to disclose foreign income in the Return? . If yes, how? May please clarify.

Replies (3)

Since she is a non-resident, income earned in UK would be foreign income and such foreign income would not be taxable in India for non-residents. Hence I think, only the interest income can be declared as her income and refund of tax can be claimed in respect of the same.

Dear Rajib

You need to check your sister's residential status as per Income Tax Act in India. If she is Non Resident than only income earned from India is taxable to her. You can simply file Tax return in India and if income from India is below taxable limit than you can calim whole of TDS as refund.

Secondly also note that your sister's global income would be taxable in UK as she is residnet there. She might have to show interest income from India in UK's tax return.

 

 

 

Thanks a lot for the reply.


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