Is it compulsory for a non-resident Indian (NRI) to file income tax return (ITR) every year in India despite not having any income in India? —Dolly Moga According to Indian tax laws, any person whose income exceeds the maximum amount not chargeable to tax (i.e. ₹2.5 lakh under the old tax regime; ₹3 lakh under the new tax regime) during the financial year, is required to file an ITR in India. Therefore, you are not obliged to file returns if you do not have any income in India.
Though there is no requirement to file the ITR, certain high-value transactions are required to be captured and reported by a reporting entity even though these transactions may not have any connection with income. Certain examples are: investing a sum of more than ₹10 lakh in non-residential external (NRE), non-resident ordinary (NRO ) or FCNR (foreign current non-resident account) fixed deposits (FDs) or subscribing to shares of an Indian company or mutual funds for more than that sum; acquiring an immovable property in India for more than ₹30 lakh. In such cases, the tax department may seek to confirm the transactions and a response has to be filed diligently without which it may eventually result in issuance of a reassessment notice.
I was working in the US since 2012. About a month back, I quit my job and came back to India due to health issues. After my treatment here is over, I will go back and search for another job in the US. I earn NRO saving bank interest and NRE fixed deposit interest from banks in India. What is the maximum period of stay allowed in India to keep the FD interest tax free? —Name withheld on request NRE FD interest remains exempt from tax till such time that the person qualifies to be a person resident outside India
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