TAX BY MANISH: Facts about filing return of Income for NRI's:

Thursday, 5 June 2014

Facts about filing return of Income for NRI's:

When is it compulsory to file a return of income:

As a general rule, an NRI is required to file a return of income in India if his/her taxable income exceeds the basic exemption limit (INR 2,00,000 for Financial Year 2013-14).
There are few exceptions to this rule; however, by large this is the basic criteria to determine the requirement
to file the return of income in India. However, there is nothing in law which stops you from filing your return of income even if your income is below the exemption limit. This is helpful in cases where the tax has been withheld at source at a flat rate although the total income earned is below the basic exemption limit of INR 2,00,000. Such NRI's can file the return and claim the excess tax withheld.

Due Date for filing return of Income:

The due date for every person not carrying on any business in India is 31st July of every year. Thus, for previous year 2013-14(i.e. April 2013 to March 2014) the due date is 31st July 2014.

Can you file the return even after the due date?

Yes.

You can file your return upto 24 months after the end of the financial year. So, for FY 2013-14, you can file your return till 31st March 2016. However, such return (filed after July 2014) will be considered as a belated return and an interest of 1% p.m. is payable on the taxes due, if any.

What is the penalty clause for non-filing of return?

You can be subjected to a penalty of INR 5,000 for each year and can also be prosecuted under Indian laws subject to certain conditions. Thus, advisable to avoid breaching the law and file your returns on a timely basis.

How can you file your return:

You can either file a paper return or online return. The best way to file is online.

What documents are required to file return of income?

You can file your return of income without any major documentation. You just need to know your basic details (Viz. PAN , DOB, Bank account details, etc.) and details of the income earned and taxes withheld.

There is no requirement to annex any kind of supporting documents with your return. You can be asked for the supporting documents later if the assessing officer processing your return feel the need to.

Thus, for return filing can be done with minimum documentation. You just need to ensure that the numbers mentioned in the returns are correct and in case you are asked to support them with the documents, you can provide that.

TAX BY MANISH