How will global income be taxed in India?

My NRI and OCI cardholder son is considering of shopping for a home in his resident nation. Is it mandatory for him to indicate it in his ITR in India? If sure, then during which kind?



An NRI (non-resident Indian) is required to file an revenue tax return when…

• The full revenue earned or accrued in India exceeds the fundamental exemption restrict of 2.5 lakh.

• He/she has earned revenue from investments in India.

• He/she needs to say a TDS refund for tax deducted on curiosity, rental revenue, and so forth.

• He/she needs to set off present 12 months losses or carry ahead and set off losses in subsequent years.

If an NRI doesn’t meet the above situations, he/she will not be mandatorily required to file ITR in India. In case an NRI is required to file an ITR, he/she can not file ITR-1 and should file ITR-2 or ITR-3. Relying upon whether or not he/she has revenue from a home property, he/she could should report such revenue within the ITR. As such disclosure of properties held just isn’t required. Disclosure of property underneath Schedule AL (Schedule Property and Liabilities) is required when whole revenue of the taxpayer as reported within the ITR exceeds 50 lakh. In such a case NRIs should report property located in India.

Additionally, reporting of overseas property is a should for a ‘Resident Particular person’ underneath Schedule FA (overseas property); however it isn’t relevant to NRIs.


We moved to Australia in 2015. We’re not residents of India. Lately, my father inherited some mounted deposits, rental property and different investments. Does he want to use for a brand new PAN, or can he use the earlier one?

—Identify withheld on request


Your father can request for change or replace particulars within the PAN card. If a person already has a PAN card and later turns into an NRI, then they will proceed utilizing the identical PAN card. Alternatively, it’s simpler to simply replace your KYC in banks and to your investments.


I make money working from home in India for a US-based firm. My wage is credited to an account within the US in {dollars} after which transferred to my Indian account. How will I be taxed on my revenue?

—Identify withheld on request


In keeping with the residential standing guidelines of the Earnings Tax Act, you can be categorised as a ‘resident’ in India for tax functions. A resident will probably be liable to pay tax on their international revenue. Therefore, salaries earned from the US firm can even be taxable in India. Nonetheless, India has a Double Tax Avoidance Settlement (DTAA) with the US. Therefore, it is possible for you to to say the tax credit score of the TDS deducted within the US out of your tax legal responsibility arising in India. DTAA makes certain {that a} taxpayer just isn’t doubly taxed for the revenue earned exterior the nation of residence. Taking the advantage of DTAA entails acquiring a tax residency certificates (TRC) that helps determine and certify your tax residency standing.

Archit Gupta is founder, chief govt officer, ClearTax.

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