1. When is an assessee compulsorily liable to file ROI in India?
An individual is liable to file ROI compulsorily only if his total taxable income in India without giving effect to the specified deductions and exemptions in the relevant FY (April – March) exceeds the maximum amount not chargeable to tax (i.e. Rs. 2,50,000/-):
Basic exemption limit in Rupees
2. When is a NRI compulsorily liable to file his ROI in India?
NRI is not required to file ROI in India in the following cases:
NRI earning income only from Dividend (which is not exempt) or interest on foreign currency or income received from a Mutual Fund.
NRI earning income only from interest on bonds purchased by way of foreign currency or dividends on Global Depository Receipts.
A NRI earning income derived from a foreign exchange asset and income by way of long term capital gains on a foreign exchange asset.
In case the NR who is not a citizen of India is a sportsman and has received income in India only by way participation in India in any game or sport (other than gambling, lottery, etc.) or Advertisement or Contribution of articles relating to any game or sport in India in newspapers, magazines or journals.
In case the NR who is not a citizen of India is an entertainer and his income taxable in India comprises of income received or receivable from his performance in India.
However, the tax deductible at source has been deducted from such income.
3. Mr. Ron earning interest income from bank deposits wants to know about the due-date for filing his return. Please advice.
Every person whose accounts do not require an audit under any Indian law is required to submit ROI by 31st July every year for the income earned during the prior year ending 31st March. As Mr. Ron is not required to get his books of accounts audited, the due dates applicable for him for filing his return of income isas under:
Income for the year ending
Actual Income Earned
File the ROI by prescribed date
31st March 2014
More than Rs 2,00,000
31st July, 2014
31st March 2015
More than Rs 2,50,000
31st July, 2015
Extended to 31.08.2015
31st March 2016
More than Rs 2,50,000
31st July, 2016
4. Are there any extended due-dates prescribed in the Act for filing ROI for a particular year?(Belated return)
Yes, as per the provisions of the Act, Belated ROI can be filed at any time before the expiry of one year from the end of the relevant assessment year or before the completion of assessment by the Income Tax Department, whichever is earlier. This can be explained with the help of an example, for the assessment year 2016-17 (i.e. financial year 2015-16), the normal due date for filing the ROI is 31st July, 2016 , however belated ROI can be filed on or before 31st March, 2018 or before the completion of assessment by the Income Tax Department, whichever is earlier.
5. Mr. Ron is earning interest income from Bank deposits on which the Bank deducts TDS @ 30.9%. The income earned is below taxable limit. Is Mr. Ron liable to file ROI?
Mr. Ron is not liable to file ROI, income being below taxable limit. However, it is advisable to file ROI to claim refund of excess TDS deducted.
6. In the above example, will Mr. Ron be liable to file ROI in case his income exceeds taxable limits?
Yes, Mr. Ron will have to file his ROI if his income exceeds taxable limits. This will be true even if the Bank has already deducted TDS on such interest income.
7. Mr. James has income from rentals, interest income and capital gain on shares transactions in India. In which form will he file his ROI and what will be the procedure?
Mr. James can log in to Income tax e-filing website (incometaxindiaefiling.gov.in) and download ITR 2 form the site. He will have to then login and upload the filled ROI on the same website. An acknowledgement will be generated on successful uploading and he has to sign the same and courier it to the designated address of the Income Tax Department mentioned on the said acknowledgement. A ROI will be said to have been filed only when such signed acknowledgement reaches the designated office of the Income Tax Department.
8. Mr. James has failed to file his return of income within the due date prescribed under the Act. What shall be the consequences?
He will be liable to pay interest at 1 % p.m. on the tax payable for delay in filing ROI.
He will also not be allowed to carry-forward losses except under the head “Income from House Property” and “Losses by specified businesses” to be set-off against incomes of the subsequent years
9. Mr. James has not filed his return of income at all for a relevant assessment year. What are the implications of non-filing of ROI?
It may result in a penalty of Rs. 5,000/- per year.
Also, he may be subject to prosecution u/s 276CC of Act
Provided that Mr. James shall not be proceeded for prosecution for failure to furnish ROI, if:the return is furnished by him before the expiry of the assessment year; or his balance tax liability after considering TDS and advance tax does not exceed Rs. 3,000/-.
10. Mr. Bob is not subject to tax in India, still intends to file his ROI voluntarily. Is it advisable?
Yes it is advisable to file the return of income in India, even though there is no obligation to file the same. The advantages of filing the ROI areas under:
To claim refund of excess tax deducted at source, along with interest @ 6% p.a.
To be eligible to carry forward losses to be set-off against future incomes
The updated tax information/ records help NRI’s to comply with the procedural documentations for repatriation of income and assets held in India
It also helps NRI access ready records as and when he returns to India