Hi, I am employed in Maldives from last one year and while applying for a home loan, bankers are asking me if I have filed IT returns or not. Shall I file the same in Maldives or in India. My salary is around 6 to 7 LPA.

Ans: An NRI's income taxes in India will depend upon his residential status for the year. If your status is 'resident', you have to pay the income tax in India; if you are a non-resident, then you need not pay the income tax in India.

Any income that you get in India (eg. On investments, rental, etc) would be taxable in India. Whether you are a resident or non-resident you have to file ITR if your income exceeds Rs. 2,50,000 or if you have short term capital gains.

Ans: Dear Mr. Rajan,

Greetings! I hope you're doing well.

To answer your question, as an NRI who has taken a housing loan from your NRE account, you can indeed claim tax deductions on the interest and principal paid for the property.

Under the Indian Income Tax Act, you can claim deductions under Section 80C for the principal repayment of your home loan, up to a maximum limit of Rs 1.5 lakhs. Additionally, you can also claim deductions under Section 24(b) for the interest paid on your home loan, up to a limit of Rs 2 lakhs.

However, please remember that these deductions can only be claimed if you have taxable income in India. Since you mentioned that you have income from Indian sources and you file your IT returns every year, you should be able to avail these benefits.

I hope this information helps you in filing your tax return.

Ans: You can opt for new tax regime and as per which your taxable income is below exemption limit of Rs.3 lacs, so you are not required to file income tax return unless any of the following conditions are applicable

Deposit > 1 Cr in Current A/c
Expense > 2 L for Foreign Travel
Expense > 1 L for Electricity
TDS/ TCS > 25K ( 50K senior citizen)
Deposit > 50 L in Saving A/c

Ans: Section 44AD applies to businesses except for professional services whereas section 44ADA is exclusively for specified professionals. Considering you are a freelancer you are more likely to fall under section 44ADA.

Please consult your CA before moving ahead.