• Income tax return

Hi,

My husband and I are both British citizens (NRI / OCI holder). We have not filed our income tax return in India since we migrated to UK for job in 2005. However, now we want to start filing Income Tax Return in India. 

We have 3 rented house properties in India. The 2 properties are on my husband's name and 1 property is on joint name.

The rent from 3 properties get deposited in a joint NRE / NRO account in India.

The source of income is the rent and interest fromt the bank account.

I need information on the following :
1. Can we start filing the income tax return from this financial year?
2. Or how far back can we file the return from?
3. Will we incurr penalty for not filing the return for so many years?
4. As the 2 properties in Pune are in my husband's name, is the rent from those properties considered only as my husband's income? Does the rent form the property in Mumabi plus the interest gets divided equally between us as source of income.
5. Can we file the Income Tax Return online , if yes , then which Form should we use to file my return for Income from house property and interest?
6. Do I need to get my name changed on the PAN card to after marriage name (change in the surname) before filing the tax retun? The joint bank account name has been changed recently to my post marriage surname.

Many thanks
Asked 5 years ago in Income Tax

1. Yes, you can start filing the return from this year onwards. YOu can also file the return for FY 2017-18.

2. From FY 2017-18 onwards

3. If it comes to the notice of the income tax department and if your income is more than 2.5 lacs, yes you may be charged with penalty.

4. Yes, pune property rent will be taxable in your husband's hand. Mumbai' properties' rent shall be taxable proportionately based on your funding in the house cost.

5. Yes, you can file online. You can use ITR1. Your husband will have to file ITR2.

6. Not required. You need to decide which name do you want in all your ID cards.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

- Yes you can start from this F.Y.

- From A.Y. 2018-19.

- If the income was taxable and if it comes into the knowledge of the department then it depends on the department.

- Rental from Pune properties will be taxable in the hands of husband and in case of joint property it will taxable as per ratio mentioned. In respect to interest if it is joint account then it will be taxable in the hands if first holder.

- Yes you can file it online. Use ITR-2.

- Yes name should be changed and new PAN card will be issued.

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Dear Ma'am,

Hope you are doing well !

1. Yes, you can.

2.In any financial year you can file your ITR for the past two years.

3.Yes,The sum total of taxable income from all sources (before claiming any deduction) exceeds the basic exemption limit.

Penal interest may be applicable under section 234A, 234B and 234C

Delayed returns cannot be revised.

You will not be allowed to carry forward some losses that belong to the years for which returns were not filed

4.Yes,Pune property rent will be taxable in your husband hands and rest of them will be taxable proportionately.

5.Yes, you can file online. ITR 1 for you and ITR 2 for your husband.

6. No, as such no requirement.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

You can file ITR for FY 2017-18 only and not before that.

If you are asked that why you didn't file income tax return for earlier year just say you were not having any income taxable i.e. income above 250000 in India before that.

Since the house is in the name of your husband the income will be included/ shown in his ITR and you can't share it.

Since your husband has 2 house and interest income he needs to use ITR 2 and since you have only 1 house and interest income you need to file ITR 1.

Yes you can file ITR online.

You can also file your ITR using our service as we provide service of filing ITR online if you send us the details over e-mail.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

Hi,

Please refer the replies inline below:

1. Yes, you can start from this financial year.

2. You can start filing the returns fro last one year.

3. For belated returns, penalties have been introduced from the current year only. However, if your Indian sourced incomes in any of the past year's exceeded the basic exemption limit, then there could be some tax liability along with interest payable to the government but the same shall be payable only if you get any notice in that respect as the return filings are time barred now for the past years.

4. Yes your understanding is absolutely correct.

5. Since you qualify to be NRI, you should go ahead with ITR 2

6. No such change required.

Thanks

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

Hi,

1. Yes, you can start filing the return from this year.

2. FY 2017-18 onwards

3.Yes. NRI must file income tax return if their income is above basic exemption limit. Non filing will leads to penalty.

4. Yes, your understanding is correct.

5. Prefer ITR 2 for your husband and ITR 1 for yourselves.

6.No such requirement.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

Hi,

Please find below the response to your queries:

1. Yes, you can.

2. From FY 2017-18 onwards

3. If it comes to the notice of the income tax department that your income exceeded the exemption limit, you may be charged with penalty and interest.

4. If the property is in your husbands name and he has funded for the same, he will be required to file the returns.

5. Yes, return can be filed online. You can use ITR1. Your husband will have to file ITR2.

6. Not mandatory.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

1 & 2) You can file IT returns only from this assessment year in respect of income earned in India during the financial year ended on [deleted]. You'll not be able to file returns for earlier years, unless you get notice from IT Department. You may check for your compliance related issues, if any, after logging into the efiling portal of the IT Department.

3) Right now you don't have penalty issues. If there is no compliance related issue, the chances of receiving notices are remote.

4) As your husband is the owner of the properties, the rental income will be assessed in his hands only.

The interest income will also be taxed in the hands of the recipients only in your case.

5) You may file IT returns online but it's advisable to do so with professional help.

6) You can get your PAN updated but it's not mandatory to file IT return.

Few additional points :

1) You should have offered Indian income also in your UK tax returns and claim double taxation relief.

2) As you have received interest on your NRO a/c, most likely the bank would have deducted tax at source. If the amount is substantial, you may claim refund, if available, by filling an application before the appropriate authority.

3) If your rental income is more than Rs 20 lakhs, you need to get registered under GST and pay GST also.

B Vijaya Kumar
CA, Hyderabad
1001 Answers
124 Consultations

5.0 on 5.0

1. Yes

2. You can start from FY 2017-18.

3. Yes, penalty can be levied assuming you were laible to file return.

4. Income from pune properties will be added in your husband's income. Income from Mumbai property and interest will be added proportionately in both of yours return.

5. You need to file ITR 1. Your husband need to file ITR 2.

6. No needed.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hi

1.Yes you can

2.From FY 2017-18 onwards

3.Penalty will be imposed in case your income is above basic exemption limit that is 2.5 lacs.

4.Yes ,pune property will be taxed in your husband's name only and Mumbai property Income can be divided proportionately.

5.Yes return can be filed online,use ITR 2

6.Its depends on your choice.If you want to continue your pre marital surname you can.

Hope it helps

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi,

There is no problem as far as the money given through cheque is concerned. That you can show as a loan and repayment of that loan.

However, for money given via cash, there is a problem. You can't give loan in cash if outstanding loan is more than 20000. There is a 100% penalty.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Dear Ma'am,

Hope you are doing well !

Money given by cheque- will be treated as loan. No problem at all.

Money given by cash-no person can accept any loan or deposit of Rs. 20,000 or more otherwise than by way of an account payee cheque or an account payee draft. The limit of Rs. 20,000 will also apply to a case even if on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from such depositor is remaining unpaid and such unpaid amount along with the loan or deposit to be accepted, exceeds the aforesaid limit. There is a 100% penalty.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

There should not be any issue as far as the loan given by cheque is concerned. There will be no tax implication when the money is returned to you by cheque. There will be an issue as far as the cash payments are concerned.

You may avail of phone consultancy if you need any further inputs on this.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi,

No issue/tax implication on money given through banking channel.

However, for money given through cash, there is a problem. You can't give loan in cash if outstanding loan is more than 20000. There is a 100% penalty.

Karishma Chhajer
CA, Jodhpur
2450 Answers
29 Consultations

5.0 on 5.0

You can prove that by just getting a account confirmation signed from another party but I don't think that other party will accept such account confirmation because then he will be liable to pay penalty u/s 271D because of section 269SS. So just ask him to return loan given in cash, in cash itself.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4265 Answers
96 Consultations

5.0 on 5.0

You can consider it as a loan. In case there is interest paid on such loan, the interest amount shall be taxable.

Prepare a loan agreement with the relative as a document of proof in case any query comes up.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hi

As per law,money to be returned in same route ,as it was paid.

Here if you had given loan in cash then its not advisable to take it back in cheque. And if you are receiving though banking mode then you have to prove the genuineness of transaction in case of any departmental query.

You should have supporting documents to prove that loan given was out of your declared income.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Hi,

- It will be treated as loan only. Cheque entries will be prooved through banking transactions and for Cash, prepare MOU or loan agreement with the relative.

Thanks

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

I can help you with the return filing if required.

with all detailing

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
38 Consultations

5.0 on 5.0

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