NRIs have to make more disclosures for filing income tax returns in 2014

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NRIs have to make more disclosures for filing income tax returns in 2014
For filing income tax in 2014, Non Resident Indians (NRI) are now required to provide more disclosures. Previously, Double Taxation Avoidance Agreements (DTAA) relief claimed by NRI assessess at the local ward of Income Tax department was verified manually.

But from now on, the Central Processing Centre (CTC) will be auto processing the income tax returns of NRIs. Since the method is being auto processed now, more disclosures have been enabled to facilitate some additional requirements which would be required to be submitted by NRIs.

Click here to know why NRIs must submit DTAA form and other details to avoid paying higher Tax Deducted at Source (TDS).

Disclosures to be submitted during Schedule FSI of foreign income:

1. Taxes paid outside India.

2. Tax payable under such income under normal provision in India.

3. Tax benefits which is available in India (tax payable and tax relief - whichever is lower)

4. Relevant exemption of DTAA.

Disclosures to be submitted in Schedule TR to avail tax relief:

1. Taxes that have been paid outside India.

2. Tax benefits that are presently available.

3. Section under which tax benefit is claimed (Section 90, 90A or 91, whichever is applicable should be mentioned).

4. Total tax benefit available in India with respect to tax paid in a country where DTAA is applicable.

5. Total tax benefit available in India with respect to tax paid in a country where DTAA is not available.

India has signed DTAA with 88 countries, among which 85 are in force now. The agreement has been signed to avoid double taxation of NRIs on declared assets in two different countries. To know the list of countries which have signed the DTAA treaty with India click here.

Conclusion

If you are an NRI then you must be submit the additional disclosures while filing the tax. You must keep all your disclosures ready so that you don't miss out providing any one of them by mistake.

GoodReturns.in

Read more about: nri, dtaa, income tax, tds, ctc
Story first published: Thursday, July 24, 2014, 10:11 [IST]
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