Is NRIs need to pay income tax in India? Of course, yes! Non-Resident Indians, also known as NRIs, are obligated to pay income tax in India on any income they have earned there. The taxes system applies to both NRIs and residents of India.

According to the Income Tax Act, any income earned or raised in India is subject to taxation under the Indian taxation system. As a result, if you are an NRI, you must understand the NRI Income Tax’s features to determine the taxes you must pay.

Here you can see the essential tips for NRIs while filing income tax returns in India:

Determine The Residential Status

The first step is figuring out your residential status about the current financial year. It could be challenging if you recently moved to a different country.

According to Indian Income Tax Act, you need to pay tax for your residency status. You will be regarded as an NRI if you have resided abroad for more than 182 days. You will also need to file an NRI income tax return.

Select the Right Income Tax Return Form

To lessen the burden of compliance for Indian taxpayers, the Indian government established the ITR-1 Form. NRIs may also file a more straightforward ITR-1 tax return. Individuals who get income above the appropriate amount from wages, a single-family home, or other sources like interest may also file an ITR-1

If you don’t fit into the ITR-1 category and have taxable income from more than one residential property, you should file an ITR-2. Depending on the needs one should choose the ITR form.

File a Return to Claim Refund

Remember that you must file a tax return in order to receive a refund of any overpaid taxes. This could happen if more tax was withheld at the source than was necessary.

As an example, if your taxable income for the year was less than Rs 1.8 lakh but the bank deducted tax at source from your interest payment, you can request a refund by submitting your tax return.

The best professional will guide you and make your NRI income tax return hassle-free. 

Disclosing Foreign Bank Account is Optional

Non-residents and non-citizens of India are not required to declare information about their foreign bank account in their ITR if they do not want a tax refund.

Non-residents who submit an ITR and want a tax refund but do not have a bank account in India must provide information about their most recent foreign version for their refund to be issued.

Furthermore, NRIS don’t need to disclose data in their ITR about assets and financial interests held outside of India.

Ending thoughts 

Hire NRI property services CA in Chandigarh, who will file the income tax returns on time to avoid imposing hefty fines. When filing an ITR, NRIs must provide all required information in the most acceptable manner and before the deadline. Read the above mentioned points and get to know about tips for NRIs while filing income tax returns in India.