Which ITR file for NRI?

kbadmin

1 year ago

ITR file for NRI

ITR file for NRI, For Non-Resident Indians (NRIs), the applicable Income Tax Return (ITR) form in India depends on the nature and sources of income earned in India.

The commonly used ITR file for NRI are as follows:

ITR-2:

This form is generally used by NRIs who have income from the following sources:

Salary or pension earned in India
Income from one or more house properties in India
Capital gains (both short-term and long-term) from the sale of assets in India
Income from other sources in India
Foreign assets or income (including foreign bank accounts)

ITR-3:

This form is applicable to NRIs who have income from the following sources:

Income from business or profession carried out in India
Salary or pension earned in India
Income from one or more house properties in India
Capital gains (both short-term and long-term) from the sale of assets in India
Income from other sources in India
Foreign assets or income (including foreign bank accounts)

It’s important to note that the selection of the appropriate ITR form for NRIs depends on various factors such as the nature and extent of income, residency status, and specific exemptions or deductions applicable to NRIs. It is advisable to consult with a tax professional or refer to the guidelines provided by the tax authority to determine the correct form for filing the ITR as an NRI.

For more information visit this site: https://www.incometax.gov.in

FAQs

1. What is ITR?

Ans: ITR stands for Income Tax Return, which is a form used to report income and pay taxes.

2. Who is considered an NRI?

Ans: An NRI is an Indian citizen who resides outside India for more than 182 days in a financial year.

3. Which ITR form should an NRI use?

Ans: NRIs typically use ITR-1 (Sahaj) for income from salary or pension, ITR-2 for income from other sources, and ITR-3 for business income.

4. Can NRIs file ITR online?

Ans: Yes, NRIs can file their ITR online through the Income Tax Department’s e-filing portal.

5. Do NRIs need to file ITR in India?

Ans: NRIs must file an ITR in India if they have income above the taxable limit, such as rental income or interest from Indian bank accounts.

6. What income is taxable for NRIs in India?

Ans: Income earned or accrued in India, such as rent, dividends, or capital gains from Indian assets, is taxable.

7. Is foreign income taxable for NRIs?

Ans: No, income earned outside India is generally not taxable in India for NRIs.

8. What documents are needed to file ITR as an NRI?

Ans: Required documents include a PAN card, bank statements, Form 26AS, and any proof of income earned in India.

9. Can NRIs claim deductions?

Ans: Yes, NRIs can claim deductions under sections like 80C (investments) and 80D (health insurance) if applicable.

10. What is the deadline for filing ITR for NRIs?

Ans: The deadline is usually July 31 for the financial year, but it may vary, so check the Income Tax Department’s announcements each year.