Many people across the country are breathing a sigh of relief as the deadline for filing tax returns for last fiscal has been extended till the end of August.
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One section of the population that have been particularly concerned about the complexity of the process have been the non-residential Indians (NRI).
Concerns have been prevalent among the section regarding how complex the process could be.
However, there is no real need to be worried as the process is not at all complicated.
As NRIs are required to file their returns annually, they are firstly expected to confirm their residential status every year without interruption.
Any Indian who stays not more than 181 days in the county in a year will be eligible to retain his NRI status.
The next step is to calculate the total taxable income of the person. This will include interest received from accounts in Indian banks, profit from market shares and income from property among others. These will later be subjected to reductions and cuts that come under section 80C.
After this the process for returns for NRIs are similar to that of normal individual. Those NRIs whose income come is below Rs 2.5 lakh per annum will be exempted from making any payment, while remaining will pay tax as per their income.
They will have to file the returns in ITR 2 in usual circumstances, but if they gain income through business, the process should be done through ITR 3.
Additionally, they will be exempted from giving details regarding Aadhar card.
In addition, NRIs based in nations where he is liable to taxation in addition to that in India can get relief under Double Taxation Avoidance Agreement (DTAA).
Once uploaded, the file should be verified within 120 days through net banking account or through direct acknowledgement.
First Published:Aug 7, 2018 7:23 PM IST