- If an NRI has to claim a refund, then he or she must have to file a return. This may happen where the tax deducted at source is more than the actual tax liability e.g. a bank may deduct the tax on an NRO fixed deposit at 30.9% but as per Double Taxation Avoidance Agreement (DTAA) this income may be taxed at lower rate, or say if income for the year was below the exemption limits but the bank deducted tax at source on interest amount, a refund can be claimed by filing a tax return. Prior to your move, you spent a few months in India and earned salary in India, your employer has provided you a Form 16 and all taxes are duly deducted by your employer. For an NRI, it is must to file a tax return in India, if his or her gross income from this employer and including all your incomes in India for the entire financial year exceed Rs 2, 50,000. Company incorporation in India
If you have a house property in India you might need to file a return. “You own two or more than two house properties in India, though none of these is let out. There is no rental income. In such a case – as per Income Tax Act – only one house property shall be considered to be self-occupied and its income shall be considered nil and all others will be considered deemed to be let out properties and therefore you will have resulting Income from House Property and you will be required to file a return in India.”
- You have been settled abroad and you decide to sell your only house property in India which was given to you by your parents. Remember, any capital gain on that particular house property is liable to be taxed and therefore a return must be filed by you in India.
- Note, if you decide to buy a car for your parents who reside in India, then no return of income is required to be filed by you. For an NRI, there is no tax on gifts to their parents.
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