NRI income tax return

We can help Non-Resident Indians (NRI) in various ways in respect of their taxation concern’s and investment in India specifically apart from other services. We understand that a non-resident Indian is sitting abroad but still he/ she has lots of concerns for India like income tax for income generated in India, purchase and sale of property in India, opening of office in India, investment in India, Remittances of funds etc. Since it is not very easy and possible for them to visit India very often for all these purposes, we help them acting on their behalf and provide all required services in a professional manner. We act as authorized representative for Non-Resident Indians (NRI). We understand their requirements, discuss with them in detail on Phone, E-Mail, Skype, etc. and perform the required activity on their behalf in a safe and professional manner which saves their time and cost.

We are available for any kind of Tax, FEMA / RBI Related Services and legal services for Non-Resident Indians. NRI need not visit India for all the purposes stated above and we shall perform all activities on their behalf so that they can save their precious time and cost on one hand and to get top class professional services on the other.

Determination of status of residence of an individual w.e.f. FY 2020-21

Reduced period of 120 days as against 182 days for Indian citizens coming to visit India – w.e.f. FY 2020-21

The following conditions are required to be fulfilled cumulatively for the individual to be considered as a resident pursuant to the amendment:

  • total income, other than income from foreign sources, should exceed INR 15 lakhs; and
  • total stay in India during the year should be more than 119 days; and
  • and the period of stay in India in the immediately preceding 4 years should be 365 days or more
  • Such Indian citizens whose period of stay in India is 182 days or more were anyway considered as residents and will continue to be considered as residents. Thus, there will be no impact on such individuals
  • The impact will be on such individuals whose period of stay is more than 119 days during the year but less than 182 days. Such individuals will be considered to be “resident but not ordinarily resident”

Illustrations - reduced period of 120 days as against 182 days for Indian citizens coming to visit India

Stateless persons to be considered as deemed residents – w.e.f. FY 2020-21

An individual, being a citizen of India, having total income, other than the income from foreign sources*, exceeding Rs. 15 lakh rupees during the year shall be deemed to be resident in India in that year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature

  • Such deemed residents will be considered to be ‘resident but not ordinarily resident’ under the Act
  • Memorandum to Finance Bill, 2020 explains the intent behind introduction of the provision as under: “The issue of stateless persons has been bothering the tax world for quite some time. It is entirely possible for an individual to arrange his affairs in such a fashion that he is not liable to tax in any country or jurisdiction during a year. This arrangement is typically employed by high net worth individuals (HNWI) to avoid paying taxes to any country/ jurisdiction on income they earn. Tax laws should not encourage a situation where a person is not liable to tax in any country.”
  • Objective of the provision is to tax such individuals who are stateless persons and are not liable to tax in any country by reason of his residence.