Income Tax Return Filling for Non Resident Indians (NRI)

For Non-Resident Indians (NRI), only the income that is received or accrued in India is taxable.

NRI should file Return of Income if his tax deducted at source (TDS @10.3% to 30.9%) is more than his actual tax liability. He is entitled to claim refund of Tax with interest.

Sometimes, NRI may incur short-term or long term capital loss on sale of investments. He can setoff such loss against long term capital gain from sale of investments in subsequent year or years provided he has filed Return of Income within the prescribed time for the year in which he has incurred loss. Hence the NRI should file the return of Income declaring loss in such a situation.

View More: Income tax on Income received outside India and recieved in NRE account

57 Responses to Income Tax Return Filling for Non Resident Indians (NRI)

  1. Krishna says:

    Hi,
    I have recently brought house in India & gave it for lease for 10 lakhs (3years) & I have 17 lakhs housing loan.
    Do I need to file tax return in India?
    Thanks

    • Income Tax Buddy says:

      Krishna, on loan of Rs 17 lakh interest will be around Rs 1.7 lakh p.a. and the same can be deducted from rent you are getting. Even though, Your Total Net income to be shown in Income tax Return may be less than Rs 2 lac ( basic exemption limit) It is advisable to file Income tax return, since the rent amount is probably credited in your bank account.

  2. Jan says:

    Hi,

    I bought a house in India early last year for my personal use, and is not rented. I reside in the US, and my income and taxes are paid here in the US. Can I file for a refund for the interest paid on the housing loan taken in India since you say the limit is 2 lac? The interest on the loan is just less than 2 lac annually.

    Thanks.

    • Income Tax Buddy says:

      Jan,

      Interest on housing loan paid, can be reduced from total taxable income. In your case, since you are NRI and not earning any income from India, you cannot claim, tax benefit for this interest on housing loan.

  3. Pratibha says:

    I have come to USA with my husband for his deputation. I have only earned interest on few FD’s in 2012-2013. Will I still get benefit of tax-rebate for women?

    Can I ask for refund for tax banks have deducted on earned interest while filing my returns?

    • Income Tax Buddy says:

      Pratibha, you can claim tax refund on TDS deducted by bank. For this you need to file income tax return

  4. Sushma says:

    Hello,
    I have 2 questions

    1. I have been living in New Zealand for last 2.5 years and do not have any earnings in India, however I hold a savings bank account which was opened when I started working while I was in India, I quit that employer around 8 months back , Am I supposed to file Income tax in India, Pls help.

    2. Also Now I use that Savings account only for sending money to India and do not have any earnings there in India. Please advise if I can continue to use my ICICI Savings bank account for money transfer purposes or I should now be using a NRI account for such purposes.

    3) I have a fixed deposit which was opened during December 2012 so I might have earned some interest from that, Now please tell me if I have to file tax for 2012-2013 year, if yes then where can I get the form 16A for the same now.

    • Income Tax Buddy says:

      Sushma it is advisable to file your tax return since duing last year you have earned both salary and interest. you can collect form 16A from bank website.

  5. AUM Rao says:

    Hi,
    I am NRI and this year (2012-2013) have a rental income of INR 3.5 lakhs. With allowed deduction of 30% + my savings, I am within tax limit ( INR 1.8lakhs) and I am planning to submit the Tax returns. However, I am not able to comply with TDS requirements that is applicable for rental income for more than INR 1.8 lakhs as the rent is paid to my bank a/c by the tenant without TDS deduction. What is the solution.

    • Income Tax Buddy says:

      No TDS is deductile by tenant, if he is individual, In your case also, tenant is under no obligation to deduct TDS on rent paid by him. Your rent income from India, is less than Rs 2 lac( basic exemption limit), as per law you are not required to file tax return in India. If you want to file tax return, you can do so. There is no tax payable on your tax return

  6. Nishit Patel says:

    I have a monthly commercial rent of about 4.5 lacks per month. TDS is taken off at 30% because im an NRI. I undersatnd that there is a rebate on the first 1/3rd of the rent. How do I get a refund.

    • Income Tax Buddy says:

      Rebate of 1/3 from rent is availalbe in case of house property. On commercial property actual expenditure is allowed.

  7. Parichay patil says:

    For how many year can a non resident Indian citizen file income tax return?

  8. TSS says:

    Can I file return even if I do not have any income in India nor any loans??.

  9. hemant says:

    Hi,I am NRI and want to know whether I need to file IT Return in India or not. I purchased two residential properties but no rental income.

    • Income Tax Buddy says:

      If you have two property, one of these will be treated as self occupied and no income will be taxed. Other property will be deemed to be let out and market rent for the same need to be added in your income and tax return need to be filed.

  10. Renuka says:

    Hi,
    Past 4 years I am working in Singapore, I got some 7 lacs in fixed deposit in my old saving account.
    Do I have to pay tax / TDS on interest amount, if yes how much what is the limit.
    Thanks,
    Renuka

    • Tax Dost says:

      Since from India you will be earning around 70 k, bank will be deducting TDS @ 10%. You should file income tax return to claim back your income tax refund.

  11. SATYA NARAYAN says:

    I have been working in Kuwait since Nov 2011. I have interest , capital gain/loss from share account in India . I do not have any rental income in India. Which ITR form I need to fill in ? Regards

  12. Ahmad Tasnim says:

    Hello,
    I have been working in Suadi Arabia Since Nov 2011. i dont have any type of income in India. Still if I want to file e-return what form should I select?

  13. Ravi says:

    Hi,
    I am residing in US and has received income in the form of perquisites (RSU stocks) in India. Form 16 is issued by the Indian subsidiary of my US company. Do I need to use ITR1 to file returns? And do I need to show the global income??
    Thanks
    Ravi

  14. RANGA SWAMY says:

    Hi,
    I am residing in Saudi Arabia since 2011 Nov. I have no earnings from India.
    I used SBI savings bank account for the transfer of money from Saudi to India.
    I also having PPF account in SBI and earned about Rs. 3000/- as an interest from SBI bank.
    It is required to file income tax return? if yes which form shall I fill?
    Please guide me.

    • Tax Dost says:

      Hi Ranga,
      Since your total income is less than total Taxable limit ie 2 lac, you are not required to file income tax return in India.

  15. Anil says:

    Hi,
    I am an NRI working in Oman for the last 8 years.
    I have made a short term capital gain of Rs. 80,000 during financial year 2012-13 through sale of shares. TDS was deducted at 15.45% by ICICIdirect.com. Since I dont have any other income from India, Can I claim a refund of the TDS deducted? I have read somewhere that 15% tax on short term capital gain is must and non-refundable. Kindly clarify this doubt.

    • Tax Dost says:

      Anil,
      You need to file income tax return to claim refund of TDS deducted on capital gain made.

      • Anil says:

        Hi,

        Thanks for your reply.

        I have downloaded ITR-2 and tried to fill the form. There are two sections in Capital Gains page.
        Column Number 2: Short term capital gain from assets (shares/units) in case of others where section 111A is applicable (STT paid). I think we must fill this column to report short term gain from shares since STT was paid at the time of sale of shares.

        Column Number 3: From assets in case of others where section 111A is not applicable. Which column I should fill. When I fill Point 2 then the main page calculates the tax liability as 15% of Rs. 80,000 and TDS is getting adjusted against the tax liability.

        But If I fill Column 3 then tax refund is equal to the TDS deducted.

        Could you please guide me.

  16. Anil says:

    Hi,
    Can I file ITR2 mentioning only the TDS details and without mentioning the Short term capital gains ?

    Thanks & Regards,
    Anil

  17. Shishir Choudhary says:

    Hi,

    First of all I am really very happy to see this site, it is so much helpful for all NRI’s. Appreciated your efforts !

    I have doubts.

    1. I am employed in Iraq from last 2.5 Years, I receive my salary (USD) in my NRO SBI Savings account every month. No TDS is deducted by my company. I have no earnings from India. Just wanted to know whether I am eligible to pay Tax in India.

    2. I haven’t fill Income Tax Return from last 2 years. Whether I need to fill Form-16. If Yes, What will be the penalty on me.

    Please guide !

    Regards,
    Shishir.

    • Tax Dost says:

      Income tax is required to be paid and return is required to be filed if your resident or ordinary resident. It all depends on your residential status. For last year since your status NRI, you are not required to file Income tax return in India

    • Saurabh says:

      Why are you receiving your salary in NRO account. You should make a NRE account to receive your salary as the interest in NRE Account is Tax Free whereas in NRO account the Interest will taxed at 30% flat

      Saurabh

  18. anindya ray says:

    Hi,
    I have been working in China for last 5 years as NRI. I have an NRI account in India and I use to transfer money to NRI a/c. I have a small salary part in India also. Now my question is
    1. The money I send to my NRI a/c is taxable or not.
    2. I invest money to some LIC or Post Office as FD, the interest earned by those FDs will be taxable or not, and do I have to show those in my IT file?
    3. I have two investments in Bonds and one in FD, within the NRI a/c bank, designed for the NRIs. The bank says those are tax free. Do I have to show them in the IT file? Will be the total amount ( the capital and the interest ) taxable ?

    Thanks.
    Sincere regards,
    Anindya.

    • Tax Dost says:

      Interest income you have earned in Post office and FDs is taxable and required to shown in your income tax return. However, interest income earned from NRI account, is tax free and you can show this in Exempt income while filing your tax return

  19. Yavnish Adlakha says:

    Hi I am a resident of Dubai (UAE)

    I would like to Gift a Car to my Father in India. I would like to know that will he or me will be liable for any TAX on this?

    Thanks & Regards,
    Yavnish

  20. Atul says:

    I am an NRI. I have three flats. One flat i m owner. Other two flat we both husband and wife are owner.

    Yearly rent income is Rs.5,00,000 plus.

    can we split the rent income between us.

    example:

    2 flat rent — Rs.11000 and Rs.17000 = Rs.3,36,000/- to my account and income tax calculation on my name.

    1 flat rent – Rs.15000 = Rs. 1,80,000 in wife account and she will be responsible for income tax.

  21. Vani says:

    Do I have to include my child’s (Minor)interest income earned on her fixed deposit with bank in my total income while submitting form 15 G or while filing return. At present my total income including my child is below the taxable limit.

  22. Gopi says:

    I am working abroad since April 2013 and have interest income from PPF, FD and Post office savings. Is the interest from PPF taxable? If not, is this to be declared under Exempt income when filing returns for AY 2014-15?

  23. Abdul says:

    Hi,
    I am living abroad for the last 2 years. I receive rental income from my apartment. Apart from house loan interest and 30% deduction on rent is there any deduction allowed? eg: maintanance fee towards housing society etc.
    Thanks

  24. Neeraj says:

    Hi, Am living abroad for last 2 years. I already have PAN Car issued in India, do I eed to apply for NRI PAN Card as well for applying returns. Thanks

  25. Dinesh J. says:

    Hi,
    Thanks for supporting the community by your advice which is very helpful.
    I am an NRI for last 35 years. I have never ever filed any ITR as there was small dividend and bank interest income very much less than exemption limits in these years.
    In FY 2014-15, I have sold my demat holdings which were with HDFCSEC. NRO holdings were all long term and HFDCBANK has credited whole proceeds net of STT to my NRO a/c. In NRE holdings few were short term on which HDFCBANK has deducted TDS and credited my NRE a/c net of STT.
    In addition, in FY 2014-15 I am planning to sale my allotments of house and office properties. These were booked 4-5 years ago and I intend to sale them before taking possession. There will be no Long term capital gain if indexation factor is applied.
    My question is whether I will be required to file ITR for FY 2014-15 because of nature of these transactions although no taxable income.
    And should I file the NIL tax return for FY 2013-14 to prepare the file in advance.
    Thanks

  26. Sumit Borard says:

    Hi,
    FY 2013-14, I am NRI and have earned salary of over 5 Lacs in UAE and also around 30,000 in India.
    What is taxability of my income and guide me for filing ITR as where to mention abroad salary income that is exempt in India.

    • Tax Dost says:

      Being NRI, you are not required to show this income in ITR in India. You only need to show salary earned in India

  27. Ashutosh says:

    I am in Singapore since Sept 2011. I filed ITR for FY2011-12 since I got Form 16 from India employer and after that there was no income from India. However, I have saving account in India on which I use to transfer fund from my Singapore bank account for paying LIC(INR 77,790/annum) installment, Mutual Fund (G) SIP(1,56,000/annum) installment and home loan installment(2,91,420). Is it mandatory for me to file the ITR for FY 2012-13 and FY 2013-14.

    • Tax Dost says:

      You are not required to file income tax return if you dont have any income in India and your status is NRI.

  28. Vivek says:

    I sold a property when i was an NRI which incurred capital loss. Buyer also deducted 1% TDS on immovable property for it.

    1. which account i need to put in the ITR . NRE or NRO or saving account in india.

    2. Can i claim a TDS refund for immovable property.

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