I am a NRI or PIO or OCI ( Overseas Citizen of India living in USA ) . I have not filed my income tax return in India since i migrated to USA for job in 2005 because there was no taxable income for me india since then . Now , i am planning to start filing Income Tax Return in India from Assessment Year 2018 - 19 because now i have 2 rented house properties in India and this is the only source of my income in India . Please clarify : (a) Can i file my India Income Tax Return online , if yes , then which Form should i use to file my return for Income from house property ? (b) I have my old PAN Card which i was using for my tax returns in india till 2005 before migrating to USA , can i use the same card for now or any change needed ? (c) Can such NRI or PIO or OCI Person take help of some amount of funds as loan or gift from his friend in India to buy a house property in India like if a house is for sale for Rs.25 Lakhs and such NRI wants to take help with Rs.10 Lakhs and and rest Rs.15 Lakh he has in his NRE/NRO Bank Account in India ? What if this situation gets reverse like can an Indian Citizen Resident take help of some amount of funds as loan or gift from his NRI/PIO/OCI friend to buy a home in India ?
Hi,
1. You can file the return online. You will have to file ITR 2.
2. Yes, you can use the same old PAN.
3. It is advisable to take the help as a loan because gifts from friends are taxable. If you want to take gift, it is better if you take it from your close relatives.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi
1. Yes. Use ITR 2.
2. Yes.
3. Yes, both the options can be done. Go for loan, as gifts from a friend above Rs 50000 shall be taxable.
a) You can file your IT return online. You can use ITR 2 for declaring your income from house property.
b) Your PAN is your Permanent Account Number and once it is issued, it is valid for your life time. You may apply for updation of your PAN for changes in your address.
c) You can take Rs 10 Lakhs as loan or gift from your friend in India. Whether you want to take it as a loan or gift depends upon your terms, whether you want to repay the amount or not. If you intend to repay,then you may take a loan with simple exchange of correspondence with him regarding the terms of repayment. If there is no need to repay, it becomes a gift and you need to pay tax on such gift as income from other sources.
The situation is the same even if an Indian resident takes money from another resident or non-resident as loan or gift.
(a) Sorry , I forgot to mention that I also have NRE / NRO Saving Bank Account in India , so there is interest income of small amount every month in addition to rent from house property . So I should file ITR 2 or some other form ? (b) Is there any space or column in ITR Form to mention that the assesse is NRI (PIO/OCI) otherwise how will tax authorities know that I am NRI and don't need Aadhar Number to link to file the return ? (c) Whether I take loan from my resident friend or he takes loan from me , can this loan be totally interest free and repaid after a long gap of like 8 yrs and any proof needed to keep that it is treated as loan ?
a) Interest on NRE a/c is exempt and interest on NRO a/c is to be assessed as Income from other sources and it can be included in ITR 2.
b) The residential status of the assessee has to be mentioned in the ITR at appropriate place in Part A-General.
c)The loan may be interest free but there should be adequate justification to show that the loan transaction is genuine and is not a sham transaction to camouflage a gift into a loan.
1. Interest from NRO account is taxable and needs to be shown in return. The same form shall be used.
2. Yes, you need to select NRI residential status in ITR Form.
3. That would not be an issue. Maintain a document signed by both of you stating such amount has been given as loan.
1. Yes, ITR 2 is still valid. Interest from NRE account is not taxable but interest from nro account is taxable under other sources.
2. Yes, there is a space to write whether you are a resident or NRI.
3. Yes, it can be done. There is no issue in income tax. Ensure you make a loan agreement on a Plain paper.
In above situation , can I fill up all details online and submit online electronically my ITR 2 Form and get the online submission confirmation of my income tax return filing as I do in USA without doing any work on paper or sending it through post anywhere at all in India ? If yes , can you suggest some online portals or softwares in India which guide automatically to fill up the return online step - by - step with all tax saving tips and do submit it online to Tax Department and get the refund confirmation in Account or is it the only option ( www.incometaxindiaefiling.gov.in ) ?
There are many sites who provide this facility but we don't recommend these sites due to some bad experience faced by our clients.
We recommend you to take services of any CA in India.
It can be done through www.incometaxindiaefiling.gov.in. No submission will be required if you e-verify the return.
I would not recommend return filling through online websites. You can get it done from a Chartered Accountant. Members of this forum can also help you out with return filing.
You can file your return online from USA by registering yourself in the e-filing portal of the Income Tax Department at https://incometaxindiaefiling.gov.in You can do e verification of the IT Return also through your net banking /aadhar/prevalidated bank account number. This is the authentic, user friendly and official website of the Income Tax Department. I understand that HR block and Cleartax websites are available but I'm not sure how good they are.
Though it is a simple process for the persons who are familiar with the Income Tax, I suggest that you should do it with professional help from a CA instead of filing directly. You may even send your details to the CA by mail and get draft computation of income for your approval before uploading.