When is it mandatory for a non-resident to file a return of income?
If a
non-resident person has income that is taxable in India, they must file an
Income-tax return based on the provisions applicable to a resident assessee.
However, there are specific circumstances where a non-resident may be exempt
from filing a return of income. These circumstances include:
·
Non-resident
Indian
A non-resident
Indian is not required to file a return of income if their total income
consists of investment income from a foreign exchange asset or long-term
capital gains from such assets, and tax has been deducted from such income.
·
Non-resident
sportsperson
A non-resident
and non-citizen sports person, such as an athlete, is exempt from filing a
return if their income consists of income from participation in any game or
sport in India, advertisement income, or income from contributing articles
relating to any game or sport in India in newspapers, journals, or magazines.
Tax must be deducted from such income.
·
Non-resident
sports association
A non-resident
sports association or institution is not required to file a return if its
income consists of any amount guaranteed to be paid or payable in relation to
any game or sport played in India, and tax has been deducted from such income.
·
Non-resident
entertainer
A non-resident
and non-citizen entertainer is exempt from filing a return if their income consists of income
received or receivable from their performance in India, and tax has been
deducted from such income.
·
Non-residents
having specified income
A non-resident
person, including a non-resident foreign company, is not required to file a
return if their total income consists of specified incomes such as interest on
bonds, dividends, interest received from the government or Indian concern, and
other specified incomes. Tax must be deducted from these incomes.
·
A foreign
company whose POEM is in India
A foreign
company that is deemed a resident in India is not required to file a return if
its total income consists of dividend income, interest received from the
government or Indian concern, interest received from an Infrastructure Debt
Fund, and other specified incomes. Tax must be deducted from these incomes.
·
Non-residents
having income from an investment fund located in IFSC
A non-resident
(including a foreign company) receiving income from an Investment Fund in an
International Financial Services Centre (IFSC) in India is exempt from filing a
return if certain conditions are fulfilled. These conditions include earning
income only from the IFSC-based Investment Fund, tax deduction on the income,
and not being issued a notice to file a return.
·
Non-resident
or foreign co. having income from investment in a specified fund
A non-resident
or foreign company is exempt from filing a return if they have earned income in
India from an investment made in a specified fund as per Section 10(4D), and
certain conditions are met. These conditions include earning income only from
the specified fund, tax deduction on the income, and not being issued a notice
to file a return.
·
Eligible
foreign investor
A non-resident
eligible foreign investor is exempt from filing a return if they operate in
accordance with SEBI's circular, make transactions in specified capital assets
listed on a recognized stock exchange located in any IFSC, earn income only from
the transfer of such assets, and meet certain other requirements.
How to furnish a Taxpayer Identification
Number (TIN) in the column of "residential status" in the ITR form if the same
wasn't allotted in the resident country?
If a
non-resident person has not been allotted a Taxpayer Identification Number
(TIN) by their resident country, they can mention their passport number in.
Furnishing Taxpayer Identification Number (TIN) in the ITR form
To provide your Taxpayer Identification Number (TIN)
in the "residential status" column of the ITR form, follow these
steps:
1.
Starting
from the Assessment Year 2019-20, in addition to mentioning your residential
status, you are required to provide additional information about your
residential status, such as the number of days you stayed in India and the
jurisdiction of your residence.
2.
If you
are a non-resident and your resident country hasn't assigned you a TIN, you can
enter your passport number instead of the TIN.
3.
The
Central Board of Direct Taxes (CBDT) has clarified that if a non-resident
person does not have a TIN from their resident country, they can mention their
passport number in place of the TIN.
Filing ITR after claiming
capital gain exemption
If you are a housewife and have earned a long-term
capital gain of Rs. 30 lakhs during the year, but you have invested the capital
gain in a new house and claimed an exemption under Section 54, you still need
to file an Income-tax return. This is because your total income before claiming
the capital gain exemption exceeds the maximum amount not chargeable to tax.
Section 139 of the Income-tax Act mandates filing returns when the total income
exceeds the maximum exemption limit before claiming capital gain exemption.
Registering on the e-filing portal without
an Indian mobile number
To register on the e-filing portal of the
Income-tax Department without an Indian mobile number, follow these steps:
1.
The
registration process requires you to provide a mobile number and email ID.
2.
While an
Indian mobile number is commonly used, it is not mandatory.
3.
You can
register with a mobile number from a foreign country.
4.
The
Income-tax Department will send an OTP (One-time Password) to the primary
mobile number and email ID provided during registration.
5.
Enter the
OTP received on the mobile number and email ID to complete the account creation
process on the e-filing portal.
