Frequently Asked Questions
- Should you file returns in India?
- Are there any exceptions to Filing Income Tax Returns?
- What is the last date for filing Income tax returns in India ?
- When should NRIs file tax returns in India ?
Should you file returns in India?
If you are an NRI, you would have to file your income tax returns if you fulfil either of these conditions:
- Your taxable income in India during the year was above the basic exemption limit of Rs 2 lakh OR
- You have earned short-term or long-term capital gains from sale of any investments or assets, even if the gains are less than the basic exemption limit.
"What this means is that firstly, NRIs do not get the benefit of differential exemption limits on basis of age or gender that is available to Resident Indians. Secondly, for NRIs, certain short term or long term capital gains from sale of investments or assets are taxed even if the total income is below the basic exemption limit. These include short term capital gains on equity shares and equity mutual funds where tax rate is 15% and long term capital gains on securities and assets where tax rate is either 20% or 10% without indexation.
Are there any exceptions to Filing Income Tax Returns?
Yes, there are two exceptions:
- If your taxable income consisted only of investment income (interest) and/or capital gains income and if tax has been deducted at source from such income, you do not have to file your tax returns.
- If you earned long term capital gains from the sale of equity shares or equity mutual funds, you do not have to pay any tax and therefore you do not have to include that in your tax return
Tip: You may also file a tax return if you have to claim a refund. This may happen where the tax deducted at source is more than the actual tax liability. Suppose your taxable income for the year was below Rs 2 lakh but the bank deducted tax at source on your interest amount, you can claim a refund by filing your tax return. Another instance is when you have a capital loss that can be set-off against capital gains. Tax may have been deducted at source on the capital gains, but you can set-off (or carry forward) capital loss against the gain and lower your actual tax liability. In such cases, you would need to file a tax return.
What is the last date for filing Income tax returns in India ?
The last date to file returns for the financial year 2012-2013 is July 31st 2013. However, remember the following:
- If you do not have any tax payable (that is all your tax has been deducted at source), you can still file your tax return by 31st March 2014 without any penalties
- If you do have tax payable, you can still file your returns by 31st March 2014 but you will be charged an interest of 1% per month for every month of delay starting from 31st July 2013 till the time you file your tax returns
- If you do not file your tax returns even by the 31st of March 2014, you may be charged a penalty of Rs 5,000 for every year of delay.
When should NRIs file tax returns in India ?
July 31st is the last date for filing your Indian income tax returns.