{"id":12140,"date":"2021-05-20T02:23:10","date_gmt":"2021-05-19T20:53:10","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=12140"},"modified":"2024-05-06T16:06:58","modified_gmt":"2024-05-06T10:36:58","slug":"key-provisions-of-nri-taxability","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/","title":{"rendered":"Key provisions of NRI Taxability"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2d7721842a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2d7721842a\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#Key_provisions_of_NRI_Taxability\" title=\"Key provisions of NRI Taxability\">Key provisions of NRI Taxability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#PERMANENT_ACCOUNT_NUMBER\" title=\"PERMANENT ACCOUNT NUMBER\">PERMANENT ACCOUNT NUMBER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#INCOME_TAX_SLAB_RATES_FOR_NRI\" title=\"INCOME TAX SLAB RATES FOR NRI\">INCOME TAX SLAB RATES FOR NRI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#NRI_TAX_SLABS_WITH_EFFECT_FROM_AY\" title=\"NRI TAX SLABS WITH EFFECT FROM AY \">NRI TAX SLABS WITH EFFECT FROM AY <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#Link\" title=\"Link\u00a0\">Link\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#TRANSFER_OF_IMMOVABLE_PROPERTY_BY_NRI_AND_TAX_IMPLICATIONS\" title=\" TRANSFER OF IMMOVABLE PROPERTY BY NRI AND TAX IMPLICATIONS\"> TRANSFER OF IMMOVABLE PROPERTY BY NRI AND TAX IMPLICATIONS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#FEATURES_OF_TRANSFER_OF_IMMOVABLE_PROPERTY\" title=\"FEATURES OF TRANSFER OF IMMOVABLE PROPERTY\">FEATURES OF TRANSFER OF IMMOVABLE PROPERTY<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#INCOME_TAX_RETURN_FILING_FOR_NRI\" title=\" INCOME TAX RETURN FILING FOR NRI \"> INCOME TAX RETURN FILING FOR NRI <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#COMPONENTS_OF_ITR_FILLING_ON_NRI\" title=\"COMPONENTS OF ITR FILLING ON NRI \">COMPONENTS OF ITR FILLING ON NRI <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#PROCESS_OF_FILING_OF_ITR_FOR_NRI\" title=\"PROCESS OF FILING OF ITR FOR NRI\">PROCESS OF FILING OF ITR FOR NRI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#DUE_DATE_FOR_FILING_ITR_FOR_NRI\" title=\"DUE DATE FOR FILING ITR FOR NRI \">DUE DATE FOR FILING ITR FOR NRI <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#Benefits_to_NRI_on_Filing_of_ITR\" title=\"Benefits to NRI on Filing of ITR\">Benefits to NRI on Filing of ITR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/key-provisions-of-nri-taxability\/#USA_INCOME_TAX_RETURN_PREPARATION\" title=\"USA INCOME TAX RETURN PREPARATION\">USA INCOME TAX RETURN PREPARATION<\/a><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/KEY-PROVISIONS-OF-NRI-TAXABILITY1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12141\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/KEY-PROVISIONS-OF-NRI-TAXABILITY1.jpg\" alt=\"\" width=\"918\" height=\"688\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/KEY-PROVISIONS-OF-NRI-TAXABILITY1.jpg 566w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/KEY-PROVISIONS-OF-NRI-TAXABILITY1-300x225.jpg 300w\" sizes=\"(max-width: 918px) 100vw, 918px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_provisions_of_NRI_Taxability\"><\/span><span style=\"color: #0000ff;\">Key provisions of <a style=\"color: #0000ff;\" href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/06\/FAQ-on-Applicability-of-Income-Tax-Provision-to-NRIs.jpg\">NRI Taxability<\/a><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"PERMANENT_ACCOUNT_NUMBER\"><\/span><span style=\"color: #000080;\"><strong>PERMANENT ACCOUNT NUMBER<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>PAN card number is a ten-digit number designed with the unique alphanumeric combination. This number is required to be taken by all entities requiring payment of tax in India.<\/li>\n<li>It is issued by the Indian Income Tax Department.<\/li>\n<li>PAN card also serves as the national identification number in India.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #333399;\"><strong>NRI PAN CARD FEATURES\u00a0<\/strong><\/span><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li><strong>APPLICATION FORM:<\/strong>\u00a0A person can apply for obtaining a PAN card by filing an application (i.e., Form 49AA in case of Non-Residents).<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 120px;\">Details to be provided in the form correctly filled up &amp; signed by the applicant along with 2 passport size photographs and the application be submitted online on the NSDL portal.<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li><strong>MEANS OF ID AND ADDRESS PROOF:<\/strong>\u00a0PAN number serves as the ID or Address Proof of the person in whose name PAN has been issued.<\/li>\n<li><strong>REQUIREMENT<\/strong><strong>:<\/strong> Every person required to undertake any financial transaction or is required to pay tax in India is compulsorily required to have a PAN card.<\/li>\n<li><strong>ITR FILING:<\/strong>\u00a0As discussed in above point, a person requiring to file ITR in India is required to have a PAN card.<\/li>\n<li><strong>MEANS OF TRANSACTION TRAIL:<\/strong> PAN card also provides a means for identification for all financial transactions and helps in keeping a watch on the same.<\/li>\n<li><strong>CHANGES IN PAN CARD:<\/strong> PAN is a very crucial document and the same be kept in updated form.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">NSDL portal also provides for PAN Correction\/Change Application to het the latest information updated in the prescribed form with the IT Department.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"INCOME_TAX_SLAB_RATES_FOR_NRI\"><\/span><span style=\"color: #000080;\"><strong>INCOME TAX SLAB RATES FOR NRI<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Every person earning income from any source in India, including the incomes which accrue or deemed to accrue in India, are liable to pay Income Tax on such income.<\/li>\n<li>Same applies to an <a href=\"https:\/\/carajput.com\/blog\/category\/nri\/\">NRI,<\/a> they are also liable to pay tax on their income, which is earned in India for example Interest Income from investment made in India, <a href=\"https:\/\/carajput.com\/blog\/overview-on-gst-on-property-rental\/\">Rental Income<\/a> from any property situated in India etc.<\/li>\n<li>India Taxation rates are progressive in nature i.e., with the increase in income, tax rates also increase gradually.<\/li>\n<li>In the Union Budget which is announced every year in the month of February, Finance Act is modified by passing the modification bill in order to give effect to the Income Tax Act, 1961.<\/li>\n<li>Tax slabs for resident individual of India below the age of 60 years and that of a NRI are same.<\/li>\n<\/ul>\n<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"NRI_TAX_SLABS_WITH_EFFECT_FROM_AY\"><\/span><span style=\"color: #333399;\"><strong>NRI TAX SLABS WITH EFFECT FROM AY <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"Link\"><\/span><a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/help\/individual\/return-applicable-0\"><span style=\"color: #333399;\"><strong>Link\u00a0<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #333399;\"><strong>ADDITIONS TO TAX LIABILITY<\/strong><\/span><\/li>\n<\/ul>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li><strong>HEALTH AND EDUCATION CESS: <\/strong>On the above tax liability, a Health and Education Cess @4%, is charged on the value of the tax liability including Surcharge, if any. This cess is applied on the tax liability of every person irrespective of their age and residency.<\/li>\n<li><strong>SURCHARGE APPLICABLE:<\/strong>\u00a0A fixed percentage of Surcharge is levied on the tax liability; in case the total taxable income of the individual exceeds the limit prescribed. The rates are as follows \u2013<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 120px;\">10% for Income exceeding Rs 50 Lakh and up to Rs 1 crore.<\/p>\n<p style=\"padding-left: 120px;\">15% for Income exceeding Rs 1 Crore and up to Rs 2 crores.<\/p>\n<p style=\"padding-left: 120px;\">25% for Income exceeding Rs 2 Crore and up to Rs 5 crores.<\/p>\n<p style=\"padding-left: 120px;\">37% for Income exceeding Rs 5 Crore<\/p>\n<p style=\"padding-left: 40px;\">Such rate of surcharge is applied and added to the value of Tax liability.<\/p>\n<ul>\n<li><span style=\"color: #333399;\"><strong>From the above data, the tax slab and rates applicable to NRI is pretty much clear and the same be used to answer the following questions &#8211; <\/strong><\/span>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>What rate of tax is applicable to NRI in India?<\/li>\n<li>Is there any special tax treatment for NRI?<\/li>\n<li>Up to what income is exempt for NRIs in India?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">Read our articles: <a href=\"https:\/\/carajput.com\/blog\/how-to-file-tds-return-online\/\">How to file a return of TDS online<\/a><\/p>\n<ol start=\"3\">\n<li>\n<h2><span class=\"ez-toc-section\" id=\"TRANSFER_OF_IMMOVABLE_PROPERTY_BY_NRI_AND_TAX_IMPLICATIONS\"><\/span><span style=\"color: #000080;\"><strong> TRANSFER OF IMMOVABLE PROPERTY BY NRI AND TAX IMPLICATIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ol>\n<ul>\n<li>NRIs can acquire immovable property in India by different means as prescribed under the FEMA act. Now where the NRIs wish to sell this immovable property, they are required to keep the taxation aspect in mind Because of sale transaction by NRIs,<\/li>\n<li>There are lots of tax issues arise before them. Same common questions arising in their mind could be &#8211;\n<ul>\n<li>What will be the taxation aspect involved in such transfer?<\/li>\n<li>How will the capital gain be calculated and what rate be applicable?<\/li>\n<li>What are the stamp duty regulations to be applied?<\/li>\n<li>In what way can the capital gain be reduced or what advantages can they take while making the payment for tax?<\/li>\n<li>How will the expenses to be made while transferring the property be handled?<\/li>\n<li>Will there be any TDS provision that will arise?<\/li>\n<li>How will the cost of acquisition be identified in case the property is received as a gift or inherited to them?<\/li>\n<\/ul>\n<\/li>\n<li>\n<h2><span class=\"ez-toc-section\" id=\"FEATURES_OF_TRANSFER_OF_IMMOVABLE_PROPERTY\"><\/span><span style=\"color: #333399;\"><strong>FEATURES OF TRANSFER OF IMMOVABLE PROPERTY<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12146\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2.jpg\" alt=\"\" width=\"919\" height=\"480\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2.jpg 846w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2-300x157.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2-768x401.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-PROPERTY-2-800x418.jpg 800w\" sizes=\"(max-width: 919px) 100vw, 919px\" \/><\/a><\/p>\n<ul>\n<li><strong>GAINS ON SALE <\/strong>&#8211; Immovable property comes in the definition of capital asset as prescribed in the law. Being a capital asset, any gain arising on the transfer of same be termed and taxed as a capital gain.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Capital-gains-tax-from-NRIs-non-residents-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12150\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Capital-gains-tax-from-NRIs-non-residents-2.jpg\" alt=\"NRI Exemption www.carajput.com\" width=\"904\" height=\"293\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Capital-gains-tax-from-NRIs-non-residents-2.jpg 728w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/Capital-gains-tax-from-NRIs-non-residents-2-300x97.jpg 300w\" sizes=\"(max-width: 904px) 100vw, 904px\" \/><\/a><\/p>\n<ul>\n<li><strong>COMPUTATION \u2013<\/strong>The amount of capital gain is determined by reducing the value of sale consideration by the cost of acquisition and the expenses incurred for undertaking the sale of such property.\n<ul>\n<li>In case the amount of sale consideration is less than the acquiring cost and expenses on sale, there exist a capital loss, otherwise, it will be a capital gain.<\/li>\n<\/ul>\n<\/li>\n<li><strong>INDEXATION BENEFIT &#8211;<\/strong>Indexation benefit refers to the benefit provided for calculation of cost of acquisition, by increasing such cost by taking the inflation index as base.\n<ul>\n<li>Such a benefit is available is the asset is a long-term asset i.e., it was hold by the owner for at least 3 years.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/exemptions-for-nris.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12148\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/exemptions-for-nris.png\" alt=\"NRI Exemption www.carajput.com\" width=\"909\" height=\"854\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/exemptions-for-nris.png 525w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/exemptions-for-nris-300x282.png 300w\" sizes=\"(max-width: 909px) 100vw, 909px\" \/><\/a><\/p>\n<ul>\n<li><strong>INHERITED OR GIFTED PROPERTY \u2013<\/strong>where the immovable property was acquired by NRI by way of Inheritance\/Gift,\n<ul>\n<li>then the benefits of previous owner will pass on to the person who acquires such property, in terms of holding period and cost of acquisition.<\/li>\n<\/ul>\n<\/li>\n<li><strong>STAMP DUTY VALUATION &#8211;<\/strong>As per the provisions of Section 50C of the Income Tax Act, an individual shall not sell a property for a consideration, where stamp duty is more than the 110% of the consideration.\n<ul>\n<li>In such a case, the stamp duty value is considered as the actual amount of consideration for determining the capital gain.<\/li>\n<\/ul>\n<\/li>\n<li><strong>MEANS TO REDUCE TAX LIABILITY <\/strong><strong>\u2013<\/strong>\u00a0a person can reduce their capital gain tax, by adopting certain tax planning tools, like\n<ul>\n<li>Investing in Long Term Specified Bonds (i.e., 3-year lock-in bonds of NHAI\/REC)<\/li>\n<li>Purchasing a new house property within specified time period.<\/li>\n<\/ul>\n<\/li>\n<li><strong>\u00a0TDS IMPLICATIONS &#8211;<\/strong>As per section 195 of Income Tax Act, 1961, buyers of the immovable property need to deduct TDS from the payment to be made to NRIs\/PIOs.<\/li>\n<li>Read our articles: <a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\">New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"INCOME_TAX_RETURN_FILING_FOR_NRI\"><\/span><span style=\"color: #000080;\"><strong> INCOME TAX RETURN FILING FOR NRI <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Income Tax Return Filing comes under the annual compliance by the Income Tax authorities in India. Every taxpayer of India is required to file an annual income tax return.<\/li>\n<li>NRIs are also not exempt, rather their filing is more important.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"COMPONENTS_OF_ITR_FILLING_ON_NRI\"><\/span><span style=\"color: #333399;\"><strong>COMPONENTS OF ITR FILLING ON NRI <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Some common source of income derived by NRIs in India are &#8211;<\/li>\n<\/ul>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>Interest received from balance kept in NRI accounts.<\/li>\n<li>Rent received from House Property situated in India.<\/li>\n<li>Capital Gains arising from sale of securities of Indian Companies.<\/li>\n<li>Dividend income received by investing in shares and mutual funds in India.<\/li>\n<li>Capital Gain arising from sale of immovable property situated in India.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"PROCESS_OF_FILING_OF_ITR_FOR_NRI\"><\/span><span style=\"color: #333399;\"><strong>PROCESS OF FILING OF ITR FOR NRI<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-TAXABILITY.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-12144\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-TAXABILITY.jpg\" alt=\"KEY PROVISIONS OF NRI TAXABILITY\" width=\"820\" height=\"312\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-TAXABILITY.jpg 363w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/05\/NRI-TAXABILITY-300x114.jpg 300w\" sizes=\"(max-width: 820px) 100vw, 820px\" \/><\/a><\/li>\n<\/ul>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li>The person is required to collect all the documents supporting the source and nature of the income to be disclosed.<\/li>\n<li>Next, they need to prepare their ITR return on the Income Tax portal. The same can be done by themselves or with the help of some expert.<\/li>\n<li>After preparation of ITR, the same be submitted with the requisite amount of tax, as calculated by the inbuilt tax calculator.<\/li>\n<li>After making payment of tax, the ITR form will be submitted to the IT department for verification purposes.<\/li>\n<li>Online verification of ITR and supporting documents be done and the same be communicated by the online mode using Emails.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"DUE_DATE_FOR_FILING_ITR_FOR_NRI\"><\/span><span style=\"color: #333399;\"><strong>DUE DATE FOR FILING ITR FOR NRI <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>In India, individuals including NRIs who come under the Non-Audit class are required to file their ITR by July 31 of Assessment Year.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_to_NRI_on_Filing_of_ITR\"><\/span><span style=\"color: #000080;\"><strong>Benefits to NRI on Filing of ITR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>LEVY OF INTEREST PENALTY<\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 80px;\">In case an assessee fails to file their ITR within the prescribed time, an interest @1% is charged for every month of default and part thereof.<\/p>\n<ul>\n<li><strong>PENALTY FEE <\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">Along with interest penalty a fee be also charged with an amount ranging from RS 1,000 \u2013 10,000.<\/p>\n<ul>\n<li><strong>DELAY IN REFUND PROCESSING <\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">In case the amount of tax paid is less than the actual tax liability, the IT department issues a refund for the same. In case the ITR is filed after the due date, the refund also gets delayed.<\/p>\n<ul>\n<li><strong>VERY LESS TIME AFTER THE DUE DATE<\/strong><\/li>\n<li>a person is in receipt of plenty of time to file their return. Where it is not done in the prescribed time, the time after due date is very less for late filers.<\/li>\n<li><strong>CARRY FORWARD OF LOSS <\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">In \u00a0case of business income, an assessee is allowed to carry forward their loss of current year for 8 succeeding assessment years.<\/p>\n<p style=\"padding-left: 40px;\">the same is disallowed in case the assessee fails to file ITR within due date in each of the AY.<\/p>\n<ul>\n<li><strong>PROSECUTION AND SCRUTINY <\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">In late filing of ITR, the chances of prosecution and scrutiny of documents by the department is pretty high<\/p>\n<h2><span class=\"ez-toc-section\" id=\"USA_INCOME_TAX_RETURN_PREPARATION\"><\/span><span style=\"color: #000080;\"><strong>USA INCOME TAX RETURN PREPARATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Wages &amp; Tax Statements Form &#8211; W-2<\/li>\n<li>Estimated Tax Form &#8211; 1040-ES<\/li>\n<li>C-Corporation Form &#8211; 1120<\/li>\n<li>Individual Return Form-1040<\/li>\n<li>Partnership Form-1065<\/li>\n<li>S-Corporation Form-1120S<\/li>\n<li>Non-Profit Corps. Form &#8211; 1041<\/li>\n<li>Employer Quarterly Federal Tax Return Form &#8211; 941<\/li>\n<li>Information Return Form \u2013 5472<\/li>\n<li>Entity Classification Election Form &#8211; 8332<\/li>\n<li>Treaty-Based Return Positions Disclosure Form &#8211; 8833<\/li>\n<\/ul>\n<p><strong>Popular Articles :\u00a0<\/strong><\/p>\n<p><a href=\"https:\/\/carajput.com\/learn\/tax-filing-changes-are-taken-into-account-when-making-the-itr-for-fy-20192020.html\">Tax filing Changes are taken into account when filing ITR for FY-2019-20<\/a><\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/sec-54f-relief-available-in-entirety-if-investment-exceeds-sale-proceeds-irrespective-of-usage-of-housing-loan\/\">Section 54F, read with section 263, of the Income-tax Act, 1961<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key provisions of NRI Taxability PERMANENT ACCOUNT NUMBER PAN card number is a ten-digit number designed with the unique alphanumeric combination. This number is required to be taken by all entities requiring payment of tax in India. It is issued by the Indian Income Tax Department. PAN card also serves as the national identification number &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9909],"tags":[9910],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12140"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=12140"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12140\/revisions"}],"predecessor-version":[{"id":26563,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/12140\/revisions\/26563"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=12140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=12140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=12140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}