• Can nris skip fsi and provide only tr to get tds refund?

Hello, I am non resident Indian (with US citizenship). If I have capital gains/dividends in India, there is a TDS. How do I go about getting refund of same? I reckon I need to file ITR but whenever I select TR, FSI is automatically selected? Is there a way to add only TR and not FSI?
Asked 2 months ago in Income Tax

- If you have only capital gain and dividend income in India then file ITR-2. Schedule TR, FSI is not applicable to you. It is applicable to resident having foreign source of income with withholding tax deduction.


For detailed discussion, you may opt for phone consultation

Vivek Kumar Arora
CA, Delhi
4810 Answers
1013 Consultations

5.0 on 5.0

As a non-resident Indian (NRI) with U.S. citizenship, dealing with Tax Deducted at Source (TDS) on capital gains and dividends earned in India requires a specific approach. Since you're encountering issues with the Income Tax Return (ITR) forms, particularly with the schedules TR (Tax Relief) and FSI (Foreign Source Income), let's clarify the process:

  1. Choosing the Right ITR Form: For your situation, where your income sources in India are capital gains and dividends, you should file using the ITR-2 form. This form is designed for individuals who do not have income from a business or profession but have capital gains or income from more than one house property.

  2. Understanding Schedules TR and FSI: The TR and FSI schedules in the ITR forms are geared towards residents with foreign income and tax relief under Double Taxation Avoidance Agreements (DTAAs). Since you're a non-resident with income sources in India, these schedules are not applicable to your situation.

    • Schedule TR is used to claim relief under a DTAA if you have paid tax in another country (in your case, the U.S.). As an NRI, this schedule isn't relevant unless you have income in India that is also taxed in the U.S.

    • Schedule FSI is for disclosing income that a resident earns from outside India. As an NRI, your foreign income (in the U.S.) is not taxable in India, so this schedule is not applicable.

  3. Filing the ITR-2 Form: When filing the ITR-2, you should focus on the relevant sections for capital gains and dividend income. Ensure that you disclose all such incomes correctly. Since TDS might have been deducted on these incomes, you need to report these details accurately to claim a refund, if applicable.

  4. Claiming TDS Refund: If excess TDS has been deducted on your income in India, you can claim a refund of the same. This is done by filing the ITR with accurate income and TDS details. After processing your return, if it's found that more tax has been deducted than your actual tax liability, the excess amount will be refunded to you.

Remember, the key is to fill out the ITR form accurately with your income details and TDS information. Schedules TR and FSI, which are automatically selected in the online ITR filing system, can be left blank if they are not applicable to your situation.

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
177 Answers
2 Consultations

5.0 on 5.0

In India you only have to show Indian income and not foreign source income. I am assuming in your question FSI means foreign source income.

While filing return of income NRI has to only disclose Indian source income


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

Thank you.

Naman Maloo
CA, Jaipur
4256 Answers
96 Consultations

5.0 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