Monday, 1 September 2014

Legal Compliance for NRI

Income Taxable in India:

A person who is Non Resident under the Provisions of The Income Tax Act, 1961 is charged to tax on the following Incomes:

a. Income earned from any source in India e.g. Interest from investments in India, capital gains from investments and immovable property in India etc.

b. Any other Income earned or received in India.

c. Income other than the above is not taxable in India.
Due Dates for Filing Return of Income:
Before the Prescribed DateAfter the Due Date, But before the Extended DateAfter the Extended Date
Every person who is not carrying on business is required to submit return of income by 31st July every year for the income earned during the prior year ending 31st March provided his income exceeds the maximum amount not chargeable to tax i.e.1,50,000/-.If a NRI do not file the ROI by the prescribed date,
  1. He can file the ROI within subsequent 20 months
  2. He is liable to pay interest at 1 % p.m. on the tax payable.
If the Tax is deducted at source from your Income in the Past years and you have not filed the Return of Income within the prescribed time, you may apply to Income Tax Department to condone the delay and accept delayed return and thus claim Refund of Tax.
For Example 
Income for the year endingActual Income EarnedFile the ROI byFile the ROI by Extended date
31st March 2005More than Rs 50,00031st July 200531st March 2007
31st March 2006More than Rs 1,00,00031st July 200631st March 2008
31st March 2007More than Rs 1,00,00031st July 200731st March 2009
31st March 2008More than Rs 1,10,00031st July 200831st March 2010
31st March 2009More than Rs 1,50,00031st July 200931st March 2011

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