You are liable to file Return of Income only if your total taxable income* in India without giving effect to the provisions of section 10A, 10B, 10BA or Chapter VI-A in the relevant Financial Year (April –March) exceeds the basic exemption limit (i.e. Rs. 2,50,000/-for F.Y.2015-16)
Non Resident Indian (NRI) earning below mentioned income shall be liable to file returns in India, irrespective of their Total Income being less than the Basic Exemption limit.
- Income from Short Term Capital Gains on equity shares or units of equity oriented mutual fund.
- Income from Long Term Capital Gains, which are chargeable to tax.
Exception:
It shall not be necessary for a Non-Resident Indian to furnish a Return of Income if –
a) his total income in respect of which he is assessable under this Act during the relevant financial year consisted only of investment income** or income by way of long –term capital gains ***or both; and
b) the tax deductible at source has been deducted from such income.
** “investment income” means any income derived [other than dividends from Domestic Company] from a foreign exchange asset#;
*** “Long –term capital gains” means income chargeable under the head “Capital gains” relating to capital asset, being a foreign exchange asset which is not a short – term capital asset;
#“Foreign exchange asset” means any specified asset which the assessee has acquired or purchased with or subscribed to in, convertible foreign exchange;
Thus, if you don’t have any income which is chargeable to tax, you are not required to file Return of Income.
Also, if you have only Investment Income or Income from Long Term capital gains or both (as explained above) and the tax has also been deducted at source from such income, then you are not required to file Return of Income.
However if you have short term capital gains on equity shares or units of equity oriented mutual fund (even if less than Rs. 2,50,000/-i.e. the basic exemption limit ) yet you are liable to file Return of Income.
As taxation terms changes time to time..
Just contact our tax advisors with simple “hi”
