Norms for filing tax are the same for residents and non-residents
I am a non-resident Indian (NRI). I have invested in shares and mutual funds in India and actively trade in them. Last year I made a substantial profit in this activity. I have filed my tax return for the year. Till when can I revise the return? Are the norms revising different than for resident Indians?
For the financial year 2015-16, the due date to file the income-tax returns for individual taxpayers was 31 July 2016 (which was extended to 5 August 2016). If an individual discovers any omission or any wrong statement in her income-tax return after filing it, she may file a revised return at any time before 31 March 2018 or before the completion of the assessment, whichever is earlier. A revised return for the financial year 2015-16 may be filed only if the original income-tax return was filed on or before the due date, which was 5 August 2016. A revised return for the financial year 2015-16 cannot be filed if the original return was been filed after 5 August 2016.
Now about the 2016-17 fiscal: the last date for filing the income-tax return for individual taxpayers was 31 July 2017 (which was extended to 5 August 2017). A revised return for the financial year 2016-17 may be filed at any time before 31 March 2019 or before the completion of the assessment, whichever is earlier.
With effect from financial year 2016-17, the income-tax return may be revised at any time before 31 March 2019 even if the original return was filed after the due date.
The provisions for revision of the income-tax return are same for resident and non-resident Indians.
I live in Singapore and have a residential property in Ahmedabad, from which I get about Rs10 lakh in rent every year. There is no other source of income from India. What are the deductions that I can claim while filing my income-tax return in India?
Rental income from property in India is considered as income accrued in India and taxable in India.
The taxable value of rental income will be calculated after considering the following deductions:
—Municipal taxes actually paid during the year to the local authority;
—Standard deduction at 30% of the net annual value (i.e., rental income less municipal taxes);
—Interest paid on a loan taken for construction, repairs, acquisition, or renewal of the property;
—Pre-construction period interest deduction (available as deduction in 5 instalments from year in which the construction is completed).
Additionally, any repayment of principal amount against housing loan taken for such property is also eligible for deduction under section 80C (maximum deduction of Rs1.5 lakh). However, if your total taxable income in India (including rental income and/or any other source of income) does not exceed the maximum amount not chargeable to tax (Rs2.5 lakh), you are not required to file income-tax return in India.
In case of double taxation, applicable benefit may be explored as per provisions of the Double Taxation Avoidance Agreement between India and Singapore.
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Sonu Iyer is tax partner & people advisory services leader, EY India