- It is advisable to file a revise return.
Query about disclosure of NRE interest income on IT returns (ITR2)
I am a non-resident Indian who lives in the UK. While filing my IT returns a few days ago, I have not furnished details of interest income from my NRE (SB and FD) accounts held in Indian banks. As the interest income on NRE accounts is not subject to TDS, I have not complied details on the income for the assessment year. I understand that income from NRE accounts is not chargeable to income tax in India as per Section 10(4). My query is that is it mandatory to show such income on page 25 of the ITR 2 form (under other exempt income)? I have already filed my returns but without disclosing the interest income from NRE accounts. Should I file a revised return?
Asked 2 years ago in Income Tax
Am I supposed to furnish details about interest income from Nonresident External (NRE) accounts? Anyway, that income is not taxable in India, right? So, what are the implications if I fail to file a revised return? Is it mandatory to furnish details under other exempt income?
Asked 2 years ago
- The purpose of Schedule EI is to report all exempt income.
- NRE interest is not taxable though reporting is required in ITR
- Implications would be mismatch of income actually received and income reported in ITR may attract limited scrutiny notice.
Hi
It is recommended to file a revised return.
Every income earned during a financial year might not be taxable but it is always reportable.
Though you have not skipped it purposefully, it might still be considered as income escaping assessment in future. You will not be charged with any taxes or penalty if such income is not taxable as per applicable tax laws but to avoid unnecessary queries from the tax officers in future, you can file a revised return.
Many people leave it also provided the amount of income in question is not very material.
Thanks
Damini
Non disclosures or furnishing of inaccurate particulars invite penalty u/s 271(1)(c) of Income Tax Act. However, this penalty is calculated with reference to the tax sought to be evaded. As there is no tax evasion in your case, there is no need to be worried about. The importance of disclosure of exempt income is to ensure that the assessee submits the details of income from all sources and calculation of tax liability, in the case of agricultural income. Further, it helps the income tax department to select the return for scrutiny based upon some objective criteria determined every year.
If your income is not material, you need not bother. If its substantial , you may file a revised return.
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