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Anil Rego |358 Answers |Ask -Follow

Financial Planner - Answered on Nov 13, 2020

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by Praveen on Nov 13, 2020Hindi

I shall be grateful if you could kindly arrange reply to my following tax query.

My daughter was NRI for F.Y. 2018-19 as well as 2019-20. She had some income in India during both F.Y.s by way of Dividend/Interest from her investments, as also capital gains from sale of shares / mutual fund units, total of which was less than Rs.1,50,000 during each of these 2 years. She was a student abroad during whole of F.Y. 2018-19. She was employed during part of F.Y. 2019-20 (less than six months) and drew income by way of salary.

1. Is she required to file return of Income in India for A.Y. 2019-20 and A.Y. 2020-21?
Anil Rego An NRI whose income is below the basic exemption limit is required to file an income tax return in India if:

One has short term capital gains on equity which is taxable

One has long term capital gains on any asset, which are chargeable to tax

Has any income chargeable to tax irrespective of the basic exemption limit

Please note the above since you have mentioned that there was capital gain in her account.

If yes, which ITR forms should she be using?

Ans: NRIs cannot file return of income in Form ITR-1. If an NRI has income from business or profession then return is required to be filed in Form ITR-3. In all other cases, ITR-2 can be used to file return of income.

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Ans: As mentioned in my article, if she is not satisfying other conditions of filing Income Tax Return and if the total TDS is less than Rs. 25,000 then she is not required to file Income Tax Return. However, if she wants to claim refund of TDS for FY 2022-23, she will be required to file Income Tax Return at www.incometax.gov.in (external link).

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Question by Praveen - Jan 28, 2021Hindi

My daughter was NRI for F.Y. 2018-19 as well as 2019-20 and continues to be NRI. She had some income in India during both FYs by way of Dividend/Interest from her investments, as also capital gains from sale of shares/mutual fund units. Her total income during F.Y. 2018-19 and 2019-20 was less than Rs 150,000 from these sources. She was a student abroad during whole of F.Y. 2018-19 while during part of F.Y. 2019-20 (less than six months), she was employed abroad and drew income by way of salary. Is she required to file return of Income in India for A.Y. 2019-20 and A.Y. 2020-21?-

Ans: An NRI with Gross Total Income less than the taxable income limit need not file income tax return. However, if your daughter has any of the below, one would need to file returns irrespective of one's Total Income being less than the Basic Exemption limit:

Income from Short Term Capital Gains on equity shares or units of equity oriented mutual fund
Income from Long Term Capital Gains, which are chargeable to tax

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