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Thursday, May 19, 2016

NRI - New ITR forms

NRI New ITR forms

India will, however, consider taxes paid abroad as prescribed in the treaty.

When filing tax in India, individuals need to use the tax paid certificates and the return of income filed in the foreign country.

The hiccups: Only federal tax paid in many countries, like the US, is eligible for foreign tax credit in India.

The claim for relief for the state taxes paid is not admissible, says Chadha.

Problems also occur when filing returns as different countries have different financial years.

The US, for example, has it from January to December. "Difficulties are often encountered by taxpayers in claiming tax credits paid in the US between January and March, as those taxes are accounted for in a different financial year," says Surana.

Some countries also follow a joint filing concept, where an individual and spouse's returns are filed jointly, says Chadha.

 This can conflict when filing taxes in India, which follows a single filing concept.

New ITR forms:

While filing returns, the person will also be required to report his foreign assets and income in the 'Foreign Assets' schedule of the India tax return form.

The Government of India has introduced The Black Money Taxation Act with effect from the tax year 2015-16 under which assessees are mandatorily required to report their overseas assets and income details.

Those earning over Rs 50 lakh a year also need to give details of assets and liabilities while filing returns.

For NRIs:

If an individual is a non-resident, he is taxable in India only for income sourced or received in the country. So, before going abroad in a financial year, if a person has received salary in India or has rental income from a property, he will need to pay tax in India on these.


While such individuals don't need to pay tax on any income received outside India or disclose foreign assets, they will need to give details of Indian assets and liabilities if the taxable income exceeds Rs 50 lakh a year.
NRI - New ITR forms Reviewed by S. Chitra on May 19, 2016 Rating: 5 NRI New ITR forms India will, however, consider taxes paid abroad as prescribed in the treaty. When filing tax in India, individual...

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