NRIs applying for tax refunds have to share foreign bank account details
India's overseas population is the largest in the world with 16 million people. Most non-resident Indians (NRIs) have bank accounts, investments in shares/bank deposits, house property and other assets in India and are required to file IT return in India by 31 July 2017.
Determination of their residential status in India
It is important for NRIs to ascertain their residential tax status in India depending upon their period of stay for a particular financial year (1 April to 31 March). This is a pertinent check point as the global income of an individual who is a resident of India is taxable and in the case of non-residents, only their income from sources in India is taxable. → Tax Filing ←
It may be pointed out that residency test under the Foreign Exchange Management Act (FEMA) is different from the test given under the Income Tax Act and the same is not relevant for tax purpose.
Under the Income Tax Return Act, an Indian citizen who leaves India for an employment purpose, or an NRI who visits India, can stay for up to 181 days without losing his non-residential status in India. The day of arrival, as well as the day of departure, is considered as stay in India.
- Changes in the return of income for AY 2017-18
- Quoting of Aadhar card number not mandatory for NRIs in their return
- Details of assets and liabilities to be furnished in schedule AL of the ITR for AY 2017-18
- Recent CBDT clarification on optional reporting of details of one foreign bank account by the non-residents in refund cases
- Obligation to file return income in case of exempt long-term capital gain
- Availing benefit under the Double Tax Avoidance Agreement (DTAA)
- Certain aspects that need to be taken care of while finalising the Indian tax returns
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