Even for NRIs, income arising in India is taxable
There’s also a provision for filing belated return within two years from the end of the fiscal
Q. I work in Singapore. Though I qualify as a non-resident Indian (NRI), I have three months’ income in India for which my employer has issued a tax deducted at source (TDS) certificate. How do I file tax return?
Expert Comment: It appears that the three-month income that you have in India has accrued/arisen in India. If that is so, the income would be taxable in India irrespective of your residential status. Hence, you need to file return of income if it exceeds the exemption limit of Rs.2 lakh. The due date for filing return for an individual is 31 July (within four months from the end of the fiscal). There is also a provision for filing a belated return within two years from the end of the fiscal. The income tax return that you need to file is ITR-1 or ITR-2 depending on other income, if any. The return of income can be filed online through the income tax website www.incometaxindiaefiling.gov.in. If you file the return with your digital signature, there is no further requirement. However if you do not have a digital signature, you need to print ITR V, which is the acknowledgement of the online return filed, sign the same and send it by ordinary post or Speed Post to the Central Processing Cell, Bangalore.
Q. I am a Person of Indian Origin (PIO) and had invested in government bonds, which have matured now, through non-resident external (NRE) account. How can I repatriate the sum?
Expert Comment: If you had invested in the bonds on repatriation basis through your NRE account, the maturity proceeds of investments can be directly credited to the NRE account. If you had invested on a non-repatriable basis, the maturity proceeds will first be credited to your non-resident ordinary (NRO) account. Thereafter you may remit the proceeds outside India or transfer them to your NRE account for an amount of up to $1 million per fiscal. This is subject to obtaining a certificate from a chartered accountant in Form 15CB certifying that due income tax has been paid and uploading Form 15CA on the Tax Information Network’s website. You can approach your bank, submit these forms, fill up the relevant remittance forms and transfer funds. There is no tax liability on maturity of the principal amount. If these are tax-free bonds, there would be no income tax liability on the interest. If they are yielding taxable interest, the interest thereon would be liable to income tax. However the tax would be withheld at 30.9% at the time of credit or payment of interest.