Hi, I am an NRI who has lived and worked in Dubai for the past 7 years. Over the course of this time, I have loaned my father an amount of approximately Rs 35 lakhs. He wants to repay me this amount by transferring the money into my NRO account. I have never filed a tax return since my income in India has always been 0. I am now afraid that the amount sent by my father into my bank account may be blocked and may come under purview of Indian income tax authorities given the high value of the amount involved. Please let me know on what can be done to bypass this. Should I file an income tax return or inform the Indian revenue services in advance?
Dear Sir,
Hope you are doing well !!
No, you don't need to file the ITR for the same.
Also, there is no need to inform the Indian revenue services in advance.
Resident of India can borrow money in Indian rupees from NRIs subject to certain conditions.
Also, the repayment of the principal amount and the interest can be done only to the NRO account of the NRI.
It is advisable to take a phone consultation for detailed discussion.
No it won't because of you have proof and source of this amount plus this is not income just a repayment of loan.
Also, if it comes under purview you have all documents to answer this.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.
Thank you.
- In case of NRI, only income earned in India is taxable and needs to file ITR. Repayment of loan by anyone is not an income for the recipient. No need to file ITR only for the loan transaction. Please check your Form 26AS. Might be you have earned some interest on NRO balance and bank has deducted TDS u/s 195. If TDS is deducted then file ITR to avoid notice in future.
For detailed discussion, please take phone consultation.
Hi
There is no requirement for filing of ITR. Further, there is no reporting of loan reporting in the ITR. Such queries may be easily handled by making proper response.
Also, even in case it is not treated as a loan transaction, it could be treated as gift (Gift from father would be exempt from tax).
Hi
No You don't need to file return.
If your status is 'NRI,' your income which is earned or accrued in India is taxable in India. ... Income which is earned outside India is not taxable in India. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO account is taxable for an NRI.
Repayment of loan is not considered as income. No need to inform the IRS in advance.
Dear Sir,
No, you need not to file the Income Tax Return.
Income Tax Return should be filed by a NRI only when there is some income accrued in India. As you mentioned that you have "0" income in India from last 7 years then you are not required to file the Income Tax Return.
Also regarding the repayment of loan in NRO account by your father is not a transaction to report to Income Tax Department as this will not amount to any income.
Thanks and Regards
Divya Chugh
There is no tax liability for repayment of loan or even for gift between father and son. You will not have any issues in transfer of funds to NRO account. However, if any funds are to be transferred to NRE account, you need to submit Form 15CA and 15CB.
