You don't need to file ITR for NIL Income. Even if you have income which is below the maximum amount which is not chargeable to tax in India i.e Rs. 2,50,000/- for individuals below 60 years of age and Rs. 3,00,000/- for above 60 years, then also no return needs to be filed as per law.
NRI tax filing in India
Hello I am a NRI residing abroad since 5 years with my wife.I have no income in india and also my wife does not have income here.We did not file taxes in india but I understood now we do need to file taxes with zero income.Is that true and what we need to do now.Also If I open fixed deposits on my wife name in india and interest incomes is around 2 lacs Do we need to show that? Many Thanks Vinay
Asked 9 years ago in Income Tax
As per the law , if you do not have any income in India , you are legally liable to file the ITR.. So there is no need of filling the ITR . Further in case there is any interest income and this interest income is less than maximum threshold limit then in that case there will be no tax liability . However you can file the ITR for that .
Interest on NRE deposit accounts is not taxable. Only NRO deposit interest is taxable.
As a non-resident, you will be assessed to tax only in respect of income earned in India and not outside India. You need to file return if your gross total income is more than the basic exemption applicable to you or if you want to claim refund. Its possible that the bank would have deducted tax at source on the interest on your fixed deposits. If its so, it will be in your own interest to file tax returns and claim refund.
The FD you open will be opened in the category of NRI. The Bank will deduct tax on the interest income. You need to file the tax return in Income for the income earned in India even if it does not cross the limit
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