• Living and Filing ITR in India by US Citizen with OCI

Please clarify on the below relating to filing the income tax return in India by an Indian resident with US Passport now (earlier Indian Citizen) and OCI Card :

(1) Can a US Citizen with an OCI Card living mainly in India (around 8 months in India & 4 months in US every year) open a regular bank savings account in any bank or post office in India either only in his/her single name or jointly with any other resident Indian ?

(2) Is filing ITR in India based upon residency status irrelevant of the citizenship of the person whether the person is an Indian citizen or not ?

(3) Is there any FATCA Form declaration to sign while opening any bank account in India or while buying some insurance policy or shares ? Is it mandatory for every Indian ?

(4) Is the monthly pension amount received from LIC after Jeevan Suraksha Policy maturity taxable in ITR or taking 50% maturity amount commuted in lumpsum on maturity and taking a monthly like pension from the remaining 50%, are both taxable? Is Rs.15,000 monthly pension under Jeevan Suraksha taxable when there is no other source of any income for such a person ?
Asked 9 months ago in Income Tax

Hello,

(1) Can a US Citizen with an OCI Card living mainly in India (around 8 months in India & 4 months in US every year) open a regular bank savings account in any bank or post office in India either only in his/her single name or jointly with any other resident Indian?

Yes, a US citizen with an OCI (Overseas Citizen of India) card can open a regular bank savings account in India. Having an OCI card allows foreign citizens of Indian origin to have many of the same privileges as Indian citizens, including the ability to open bank accounts and make investments in India.

(2) Is filing ITR in India based upon residency status irrelevant of the citizenship of the person whether the person is an Indian citizen or not?

Income tax filing in India is based on the residency status of the individual, not their citizenship. The key factor is whether the individual qualifies as a resident for tax purposes in India. The residential status is determined based on the number of days an individual spends in India during the financial year and in the previous years. If you are a resident as per Indian tax laws, you are required to file an income tax return in India on your global income.

(3) Is there any FATCA Form declaration to sign while opening any bank account in India or while buying some insurance policy or shares? Is it mandatory for every Indian?

The declaration is meant to identify and report financial accounts held by U.S. taxpayers to the U.S. government.

FATCA compliance is typically mandatory for both residents and non-residents in India who have financial accounts and investments in Indian institutions. .

(4) Is the monthly pension amount received from LIC after Jeevan Suraksha Policy maturity taxable in ITR or taking 50% maturity amount commuted in lump sum on maturity and taking a monthly like pension from the remaining 50%, are both taxable? Is Rs.15,000 monthly pension under Jeevan Suraksha taxable when there is no other source of any income for such a person?

The taxation of pension income in India depends on the specific pension plan, the amount, and the provisions of the Income Tax Act. In general, pensions can be partially taxable or tax-free depending on various factors.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

1) If your residential status remains resident then you can open regular saving account either individually or jointly

2) ITR filing depends on the scope of total income. Scope of total income and tax incidence depends on the residential status irrespective of the citizenship. Residential status is determined for every financial year

3) Yes

4) Both commuted and uncommuted pensions are wholly exempt from tax u/s 10(23AAB)

 

For detailed discussion you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

1) File ITR and show the amount as an exempt income

2) It depends on your residential status 

3) File ITR and disclose such transactions

 

 

 

 

Vivek Kumar Arora
CA, Delhi
4885 Answers
1069 Consultations

5.0 on 5.0

Hello.

(1) Income Tax and LIC Jeevan Suraksha Policy:

  • Report LIC Jeevan Suraksha income in your ITR.
  • Even if it's exempt, report it for transparency.

(2) FEMA Rules for Opening a Regular Savings Account:

  • FEMA rules depend on your residential status.
  • Indian residents face fewer restrictions.
  • Non-residents may have more regulations.
  • Consult a financial expert for guidance.

(3) Selling House Property with Minimal Capital Gain:

  • File ITR and report property transaction.
  • Even if capital gain is minimal or zero.
  • Fulfill legal requirements and maintain transparency.
  • May avail exemptions or deductions.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
269 Answers
4 Consultations

5.0 on 5.0

1. Yes u can open saving bank account in India

2.Income tax allow person to file ITR based on the no of days he/she resides in India. If u fulfill that criteria u need to file ITR.

3.While opening bank account in India it is compulsory for  every person to fill the FATCA declaration.

4. Wether the pension will be taxable is depend upon the pension policy.Generally pension can be taxable for tax free.

Please feel free to ask any other answer you want. 

Poorvi Jain
CA, Indore
143 Answers
1 Consultation

4.8 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA