NRI tax declaration
Hi - if I am earning salary on a foreign land and would want to declare the same to Indian Gov being the citizen of India, can someone please detail the process in myITreturns website. I was earning in the foreign land for the complete financial year and the form16 of my company over here shows 0 as income generated and tax to be paid.
Since you are no satisfying any of the basic condition of section 6, thus you are a Non Resident for that year. Thus salary earned in foreign is not taxable in India.
I think the same is already answered by our professional colleague
The answers do not address my question. I was earning salary on a foreign soil and I was paying the tax there. Accordingly, I know that nothing needs to be paid again to Indian Govt as our Govt doesn't have double taxation. But as long as I am citizen of India, I shall have to declare my income even if it is sourced from foreign soil and even if I have nothing to pay to the Govt. of India. In short, I have to let my Govt know that I was working on a foreign land during this period and accordingly haven't paid any tax to the Indian Govt. Indian Govt should be aware of how much I was earning during this period on a foreign land so no questions can be asked at anytime in the future in this context. Are you telling me that there is no such mandate for the Indian Govt? If I don't get the satisfying answer on how to declare my income to the Indian Govt. I shall consider my question unanswered.
Sir first let us know how you are a citizen of India as your question does not mention your stay in india to give us a clear answer.
We will like to give answer from basics even if you know the same.
The Residential Status of an Individual is to be determined on the basis of period of stay of the taxpayer in India and is computed separately for each year. If an individual satisfies any one of the following conditions-,
he is said to be Resident in India for that financial year. The conditions are:-
1.)He is in India for a period of 182 days or more in that financial year
OR
2.)He is in India for 60 days or more during that financial year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant financial year.
If any one of the above conditions is satisfied, the individual is said to be resident in India. However, if none of the conditions is satisfied, he is said to be a Non Resident Indian (NRI).
There are 2 exceptions to the above rule of classification of Residential Status:
1. In case of an individual, who is a citizen of India and who leaves India in any financial year for the purpose of employment outside India, the 2nd condition stated above shall not be applicable and only the
1st condition of 182 days or more would be applicable.
2. In case of an individual who is a citizen of India or is a person of Indian origin and who being outside India comes on a visit to India in any financial year, the 2nd conditions stated above shall not be applicable and only the 1st condition of 182 days or more would be applicable.
Charge of income under the provisions of Income Tax Act, 1961 is mainly based on :
1.residential status of a person,
2.accrual and / or receipt of income , i.e. within India or outside India.
*****In case of NRI :he didn't fulfill both the situation as he was non resident of India and he didn't received any income in or from India.
And as per sec 139(1) of Income Tax Act 1962, every person has to furnish a return of his income on or before the due date, if his total income exceeds the basic exemption limit.
So ,In case of NRI he has not any income from India ,so there is no need to furnish the return as his income which is in INDIA is less than maximum limit (zero income).
Sir to sum up from what we understand from this is that since your income from India is below the exemption limit there is no need to file the Returns in india whether you are citizen or not.
This is an extract from the Income Tax Act,1961.
Second Option if you really want to file the returns which we think is not necessary : If you are a Resident Indian your global income is taxable in India.This income may have been earned or received outside - but it shall be taxed in India. In case this income is also taxable in another country, you can take benefit of DTAA (Double Tax Avoidance Agreement).
In my opinion its not mandatory to disclose your income. However if you wish to declare you can file return and show your foreign asset. Regards
Dear Sir,
As per the information provided by you it appears that you are a Non Resident Indian and hence it is not mandatory to file the IT Returns in India.
No questions will be asked by the Income tax department because whenever you return to India you will have to declare your Income earned from abroad which you shall repatriate to India and hence the chapter closes then and there.
Trust this clarifies your query.
Please feel free to call/ get back in case of any further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
