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Rakesh (aa)     11 January 2013

Income tax return for nri

Hi

 

I am a NRI and my yearly income is 32 lakhs. I live and work in Korea on work permit and I am an Indian Citizen.

 

Now I am a little confused on IT return and filing. My income is taxable in Korea and what I get as salary in my account is after all the deduction of all the taxes in Korea. So yearly I get around 24 Lakhs as net salary.

 

Someone suggested me that as I don’t earn anything in India my income is 0 in India and so I don’t have to file or pay any income tax! This might be totally wrong! Apart from my income in Korea I have no earning in India. But the real question lies is that should I file Income tax return? If yes then on what bases? My income has already been taxed in Korea and So I guess I don’t have to pay any taxes again in India!

 

Please suggest on how to file IT return for NRI. Moreover for much stuff in India, they do ask for an IT file return. Recently for insurance they asked me to have an IT return and only on the ITR bases they can confirm my earnings. They didn’t accept my salary slip/ bank account statement as a proof on Income.

 

So is there any way where in I can show on Income tax return that I am earning 32 lakhs yearly and as I have paid tax in Korea I really don’t need to pay any taxes again in India, and hence my income is 32 lakhs 

 

Thanks in advance



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 7 Replies

Sanjeev (Lawyer)     11 January 2013

There is a Double taxation avoidance agreement signed between India and Republic of Korea so under that if the Income is taxed in Korea it is not taxable in India.

So is the Income earned in Korea credited to your Korean Bank account or Indian Bank account?

Sanjeev (Lawyer)     11 January 2013

You also need to check your NRI Status

A tax payer gets the status of NR in India if his/her physical stay in India is less than: 

> 182 days in a FY; or 

> 60 days in a FY and 365 days during preceding four FYs. The 60 days may be extended to 182 days in cases where an Indian citizen in going abroad for employment or an Indian citizen/ person of Indian origin visiting India. 

Rakesh (aa)     11 January 2013

Yes the amount is credited in my Korean Bank account. And just for information, here the banking things are not as messy as in India. The bank has never asked any documents like pan card or any Indian residence proof.

The amount of salary that is deposited in my account is after the deduction on income tax, so here we don’t have to file the ITR and all those stuff.

Rakesh (aa)     11 January 2013

Yes my NRI status is on as during this FY I will be only here for 35 days!

Sanjeev (Lawyer)     11 January 2013

You can file Income tax return in India file ITR6 form and claim deduction under Section 90 for the Korean Income also include the Indian Income you would have earned Interest on Bank Interest and any other Incomes. This is the best way to go.

Rakesh (aa)     11 January 2013

Okay, Thanks for helping out. By the way I just searched out for ITR6 and it seems like it’s used by companies. But as an individual can I use ITR6? and under section 90 is all income earned and taxed abroad are exempted from tax ?

Sanjeev (Lawyer)     11 January 2013

ITR6 I mentioned was incorrect use ITR1 or ITR2....Yes Incones taxed abroad are exempt under this section


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