While Indians are all set and prepared to file their income tax returns, NRIs worry if they have to file their tax returns in India as well. Also, they are also worried if the date by which they have to file the tax returns is similar to that of the residents of India.
Our Managing Director, Mr Vaibhav Sankla, says that the taxability of foreign income of the NRIs, depend on their residential status, as per the Indian tax laws. You are liable to pay taxes on your foreign income only if you are a resident or ordinary resident of India, he adds. He further says that if NRIs are earning an income in India, then the income tax laws are same for them with same due dates as applicable to the residents of India.
There are certain conditions where NRIs are required to file their tax returns as well as claim refunds like any other residents in India. NRIs do not have to pay taxes in India for income earned by them in other countries. However, to claim relief under Double Taxation Avoidance Agreement (DTAA), NRIs have to submit their Tax Residency Certificate. NRIs should be aware of all their tax-free income so that they can plan and file their income tax returns accordingly.
If a person qualifies to be a Resident or an Ordinary Resident of India for a specific financial year, he has to show all the worldwide incomes he earns in India.
The article featured in Money Today and our Managing Director, Mr Vaibhav Sankla, was asked for his thoughts on the topic. You can read the original article below.