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1. Income Tax Return Filing
I am an NRI, should I still have to file tax returns in India? I was on an assignment outside India for more than 9 months/ I was in India on an assignment for 3 months. Do I have to file return in India ? I have two vacant properties in Mumbai or I have a property in Mumbai which is let out, do I have to file my India Tax Return,etc. are the common questions we hear from Non Residents.
The answer is Yes. In case of non-residents, all income which accrues or arises in India such as rent from the property, interest from deposits, dividends from the company, gain from the sale of property are subject to tax. Wherever taxes are applicable and even if such taxes are deducted by the tenant or the buyer of the property, etc.,NRIs are obliged to file tax returns.
We at S.V.Bhat & Co have solid experience in expatriate and NRI taxation and return filings and assessments. Please reach out to us at [email protected]
2. TDS on Property /Obtaining Lower Tax Certificate on Sale of Properties by NRI
As per Section 195 of the Income Tax Act, payment to a Non resident, be it sale consideration towards the sale of property, Rent, Interest, Professional fees, commission, royalty, etc., is subject to Tax Deduction at Source (TDS).
Suppose, an NRI sells a flat (Long Term) in Mumbai for Rs.90 lakhs, the buyer of the property has to deduct TDS at 22.88% (FY 2022-23).
In order to reduce the TDS burden, the seller of the property can apply to the department to issue a certificate for deduction of lower rates. Further, we also assist in filing of TDS returns to the Government.
We at S.V.Bhat & Co. have gained good exposure in dealing with NRI taxation, TDS and Lower tax certificate services. For more information or services may kindly write to [email protected]
3. Repatriation of Funds in India
Remittance of income like rent, dividend, pension, interest, sale proceeds on sale of the property, etc. of NRIs/PIO is freely allowed, on the basis of appropriate certification by a Chartered Accountant certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid / provided for.
A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit an amount up to USD one million, per financial year.
We are very familiar with the repatriation of funds by NRIs. We undertake services such as consultancy, certification, and correspondence with the Banker. For more information on these services write to [email protected]