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Sanjeev Govila |458 Answers |Ask -Follow

Financial Planner - Answered on Apr 02, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more

Asked by Anonymous - Mar 24, 2024Hindi

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: As an Indian citizen working in the Maldives, you may need to file income tax returns in both countries. If you've been in the Maldives for over 182 days, you're likely a tax resident there. However, you must file in India if your income exceeds Rs. 2.5 lakhs per year in India.

Utilize the Double Taxation Avoidance Agreement to avoid being taxed twice. When applying for a home loan in India, banks may request for proof of income and tax returns, so filing in India could support your application. Seek advice from a tax advisor well-versed in both countries' tax laws to ensure compliance and maximize benefits.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Financial Planner - Answered on Jul 13, 2021

Question by Amit - Jul 13, 2021Hindi

I am currently employed in the Maldives and my income is approximately USD 4000 a month. I am paying income tax in Maldives. I would like to know if I need to pay income tax in India as well because I will be sending my income back to India. And if I do not have to pay income tax in India do I have to file my ITR?

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.

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Tax Expert - Answered on Nov 25, 2022

Question by Caetanofrancisco - Nov 25, 2022Hindi

I was a NRE and I am having NRE FDR maturing at different dates. I have come to settle in India. My question is do I need to file IT returns? But the interest is from my NRE FDs. Please advise me in details considering me as a lay man.

Ans: Interest earned on NRE FDs is exempt from tax till the time a person is non-resident in India as per provisions of FEMA, 1999. As you have come to settle in India, for the purpose of taxing FD Interest income, you may be treated as a Resident and entire Interest income may be taxed.

Regarding filing income tax return, person is required to file Income tax return in following scenarios:

1. If income is above Rs.2.5 lakh in a Financial Year; or

2. Further following specified persons are also required to file income tax return even if earned income is below Rs.2.5 lakh:

a. People with Sales turnover of Rs 60 lakh and above from Business

b. Professional income exceeding Rs 10 lakh

c. TDS or TCS of Rs 25,000 or more (Rs 50,000 or more in case of senior citizen) - even if person don't want to claim refund

d. Deposited at least Rs 50 lakh in one or more savings accounts

e. Deposited amounts exceeding Rs 1 crore in one or more current accounts

f. Spending above Rs 2 lakh on a foreign country travel Electricity bill exceeding Rs 1 lakh

g. Where there is an income from foreign sources for resident

h. Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India

i. If you are a Resident and a signing authority in a foreign account

Apart from above, it is also advised to file ITR in following situations, if same is applicable in your case:

If TDS is deducted by payer of income, filing income tax return makes you eligible to claim refund with interest @6% p.a. - If person wants to carry forward certain loss to future years, it is advisable to file return
Proof of return filing is also asked when a person applies for a loan or a visa. So in future, if you are planning to apply for the same, it is advisable to file income tax return if you have earned reasonable income which makes you eligible for application.

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