Now the obligation to furnish ITR shall arise where the total income (earned in India) exceeds the maximum amount not chargeable to tax (Rs 2.5 lakh). Hence, the furnishing of ITR in respect of interest income, is below the taxable limit, is not required.
Non-resident Indians (NRIs) are liable to pay tax in India on income that is received or is deemed to be received in India during the previous year or income that has accrued or arisen to such NRI in India during the previous year. Income earned abroad by NRI is not taxed in India and the same shall be taxed abroad.
Another case when you are running a company where your remuneration came from both domestic and overseas and the same shall be taxable at the applicable slab rates. For a salaried individual, the person can claim certain deductions/ exemptions available under the I-T Act.
Another situation regarding this is that as per the I-T Act, exemption of HRA is permissible where expenses have been incurred on payment of rent in respect of residential accommodation occupied by the individual.
In the year 2017-18, the minimum income which is exempt from tax is Rs 2.5 lakhs. NRI’s total income in India is less than the minimum exempt amount, and therefore the person does not have to pay any tax on it. In fact, since no tax is payable by the person, she /he must claim a refund of the TDS deducted on her interest income. A refund person can only be claimed by filing an income tax return for that financial year.
If an NRI has no income accrued from India then he is not obligated to file for the taxes in India. Only if an NRI had accrued some income by investing in any property or the stock market or any kind of salary he is receiving and the income received is more than 2.5 lac then only he is obligated to file for taxes.
