Do I need to file return even if no income in India?
Understanding ITR Filing Requirements and High-Value Transaction Reporting for Non-Residents in India
According to Indian tax laws, any person whose income exceeds the maximum amount not chargeable to tax (i.e. ₹2.5 lakh under the old tax regime; ₹3 lakh under the new tax regime) during the financial year, is required to file an ITR for NRI in India. So, if you have no income in India, you are not required to file tax returns.
NRIs are generally not required to file an income tax return in India if they have no taxable income. However, certain high-value transactions must still be reported by financial institutions, even if they are not linked to income. For example, investing over ₹10 lakh in NRE, NRO, or FCNR fixed deposits, purchasing shares or mutual funds worth more than ₹10 lahks, or buying property in India for over ₹30 lahks. In such cases, the tax department may ask for confirmation, and it’s important to respond promptly to avoid any reassessment notice.
It’s important to note that even if you do not need to file a return, the income tax in India for NRI may still apply to certain types of income earned in India, and you may need to file an income tax return filing for non-resident Indian in case of TDS refund for NRIs or any income that exceeds the exemption limit. Moreover, the Double Taxation Avoidance Agreement (DTAA) for NRIs may offer relief in terms of avoiding double taxation if the NRI’s income is taxable in both India and another country.
If you are unsure about your obligations, understanding the new income tax rules for NRIs can be very helpful. Additionally, ensure you know whether Can NRI file ITR 1 or need to file other forms, and be sure you follow the proper procedures on how to file an income tax return for NRI. By staying informed and filing your NRI tax return India correctly, you can avoid any tax-related issues.
Our Blogs
Exciting News for NRI: No Capital Gains Tax in India on Mutual Fund Redemptions, Rules ITAT
Read MoreIncome Tax Return for NRIs: Who Needs to File and How?
Read MoreWhat is the law regarding declaration of foreign Assets by the NRI, who have returned to India?
Read MoreWhen does one become an "NRI" as per indian laws?
Read MoreWhat steps are to be taken if Income tax notice is recieved by the NRI?
Read MoreHow is alimony taxed in India ?
Read MoreDo I need to file return even if no income in India?
Read MoreWhat will be the implication in case of NRI returned to india, for declaration of foreign assets in their indian income tax returns?
Read MoreReceived a Income tax notice, here are reasons why many NRIs are getting notices from income tax department
Read MoreDo I need to file return even if no income in India?
Understanding ITR Filing Requirements and High-Value Transaction Reporting for Non-Residents in India
According to Indian tax laws, any person whose income exceeds the maximum amount not chargeable to tax (i.e. ₹2.5 lakh under the old tax regime; ₹3 lakh under the new tax regime) during the financial year, is required to file an ITR for NRI in India. So, if you have no income in India, you are not required to file tax returns.
NRIs are generally not required to file an income tax return in India if they have no taxable income. However, certain high-value transactions must still be reported by financial institutions, even if they are not linked to income. For example, investing over ₹10 lakh in NRE, NRO, or FCNR fixed deposits, purchasing shares or mutual funds worth more than ₹10 lahks, or buying property in India for over ₹30 lahks. In such cases, the tax department may ask for confirmation, and it’s important to respond promptly to avoid any reassessment notice.
It’s important to note that even if you do not need to file a return, the income tax in India for NRI may still apply to certain types of income earned in India, and you may need to file an income tax return filing for non-resident Indian in case of TDS refund for NRIs or any income that exceeds the exemption limit. Moreover, the Double Taxation Avoidance Agreement (DTAA) for NRIs may offer relief in terms of avoiding double taxation if the NRI’s income is taxable in both India and another country.
If you are unsure about your obligations, understanding the new income tax rules for NRIs can be very helpful. Additionally, ensure you know whether Can NRI file ITR 1 or need to file other forms, and be sure you follow the proper procedures on how to file an income tax return for NRI. By staying informed and filing your NRI tax return India correctly, you can avoid any tax-related issues.
Also Read: What will be the implication in case of NRI returned to india, for declaration of foreign assets in their indian income tax returns?