Setting Up Business In India
Oldest Indian Tax Advisors for You
Our Team Handles Income Tax, Goods & Services Tax, Corporate Law, RBI & FEMA Matters.
Our Firm Sunil K. Khanna & Co. was founded in 2nd February, 1976 by our founder Late CA. Sunil Kumar Khanna. He founded the firm with a vision to build an institution of learning for the team members associated with the firm and to render a one stop solution to his clients. We are one of the leading Chartered Accountant Firms In India offering services in the field of Income Tax, Goods & Services Tax, Corporate Law, Regulatory Compliance and Audit & Assurance. The immense experience of the firm helps in rendering a wide variety of services to Indian and Multi National companies.
First Consultation Absolutely Free
NRI Returning India
If you are an NRI who has been staying out of India for a long time and now planning to return to India, here are some important things to keep in mind:
Change of residential status: Your residential status for income tax purposes will change from NRI to Resident Indian once you return to India. This will have implications on your income tax liabilities and the tax benefits available to you.
Overseas income: You will have to declare your overseas income in your tax returns in India. However, if you are a resident but not ordinarily resident (RNOR), your overseas income may not be taxable in India.
Bank accounts: You can convert your NRE and FCNR accounts into Resident Indian accounts or continue with them as they are. However, your NRO account will become your primary account for all transactions in India.
Investments: Your investments in India, such as mutual funds and stocks, will continue to be valid. You can also invest in new schemes as a resident Indian.
Property: If you own property in India, you can continue to hold it. However, if you have sold any property while you were an NRI, the capital gains tax implications may be different.
Aadhaar card: As a resident Indian, you will be required to obtain an Aadhaar card, which is a unique identification number issued by the Indian government.
Insurance policies: Your insurance policies will continue to be valid. You can also buy new policies as a resident Indian.
It is advisable to consult with a tax expert or financial advisor to understand the implications of returning to India on your finances and taxes.
(i) a banking company or a cooperative bank
(ii) a Post Office;
(iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or
(iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.
An Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year.
- Payment for one or more pre-paid payment instruments, as defined by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007, to a banking company or a co-operative bank or to any other company or institution.
- Payment as life insurance premium to an insurance company for an amount aggregating to more than fifty thousand rupees in a financial year
- A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) for an Amount exceeding one lakh rupees per transaction.
- Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange for an amount exceeding one lakh rupees per transaction.
- Sale or purchase of any immovable property for an Amount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees
- Sale or purchase, by any person, of goods or services of any nature for an Amount exceeding two lakh rupees per transaction
Who should file return of income?
Every individual has to file the return of income if his total income (including income of any other person
in respect of which he is assessable) without giving effect to the provisions of section 10(38), 10A, 10B or 10BA or 54 or 54B or 54D or 54EC or 54F or 54G or 54GA or 54GB Chapter VIA (i.e., deduction under section 80C to section 80U), exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption limit.
Filing of return is mandatory in the following cases:
1) If an individual has assets outside India:
An Individual, being a resident and ordinary resident in India, shall file his return of Income, even if his income does not exceed the maximum exemption limit, if he:
a) Holds, as a beneficial owner or otherwise, any asset (including any financial interest in any entity) located outside India
b) Has signing authority in any account located outside India
c) Is a beneficiary of any asset (including any financial interest in any entity) located outside India.
2) If he deposits more than Rs. 1 crore in bank account
An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has deposited an amount (or aggregate of amount) exceeding Rs. 1 crore in one or more current accounts maintained with a banking company or a co-operative bank. .
3) If foreign travel expense is more than Rs. 2 lakh .
An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has incurred more than Rs. 2 lakh on travel to a foreign country, either for himself or for any other person. .
4) If electricity consumption is more than Rs. 1 lakh.
An Individual or HUF shall file his return of Income, even if income does not exceed the maximum exemption limit, if he has incurred an expenditure exceeding Rs. 1 lakh on electricity consumption..
5) If total sales, turnover or gross receipt of the business exceeds Rs. 60 lakh during the previous year.
6) If total gross receipt of profession exceeds Rs. 10 lakh during the previous year..
7) If the total of tax deducted and collected in case of a person during the previous year is Rs. 25,000 or more (Rs. 50,000 in case of resident senior citizen)..
8) If the aggregate deposit in one or more savings bank accounts of the person is Rs. 50 lakhs or more during the previous year..
Q What is a return of income?
Ans– Income Tax Return ITR is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department. Different forms of returns of income are prescribed for filing of returns for different Status and Nature of income.
Q- Is it necessary to attach any documents along with the return of income?
Ans- ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.
Q- What is the difference between e-filing and e-payment?
Ans– E-payment is the process of electronic payment of tax (i.e., by net banking or debit/ credit card) and e-filing is the process of electronically furnishing of return of income. Using the e-payment and e-filing facility, the taxpayer can discharge his obligations of payment of tax and furnishing of return easily and quickly.
Q Will I be put to any disadvantage by filing my return?
Ans– No, on the contrary by not filing your return inspite of having taxable income, you will be liable to the penalty and prosecution provisions under the Income-tax Act.
Q What are the benefits of filing my return of income?
Ans – Filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation. Apart from this, your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc.
Q What are the benefits of e-filing the return of income?
Ans- E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually.
Q– Is it necessary to file a return of income when I do not have any positive income?
Ans– If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date.
Q– What are the due dates for filing returns of income/loss?
Due date of filing of return of income
|SrNo.||Status of the taxpayer||Due date|
|1||Any company other than a company who is required to furnish a report in Form No. 3CEB under section 92E (i.e. other than covered in 2 below)||October 31 of the assessment year|
|2||Any person (may be corporate/non-corporate) who is required to furnish a report in Form No. 3CEB under section 92E||November 30 of the assessment year|
|3||Any person (other than a company) whose accounts are to be audited under the Income-tax Law or under any other law||October 31 of the assessment year|
|4||A working partner of a firm whose accounts are required to be audited under this Act or under any other law.||October 31 of the assessment year|
|5||Any other assesse||July 31 of the assessment year . |
Q– Will I be penalized on late filing of ITR even if I am not liable to file it?
Ans- No, late filing fee under section 234F not leviable in case you are not required to file ITR as per section 139 but filing it voluntary though after the due date.
Q – If I fail to furnish my return within the due date, will I be fined or penalized?
Ans– As per section 234F, late filing fees of Rs. 5,000 shall be payable if return furnished after due date specified under section 139(1). However amount of late filing fees to be paid shall be Rs.1,000, if the total income of the person does not exceed Rs.5 lakhs.
Q- Can a return be filed after the due date?
Ans– Return of income which has not been furnished on or before the due date specified under section 139(1) is called belated return. Belated return of income is furnished under section 139(4).
Any person who has not furnished a return of income within the time period allowed under section 139(1) or within the time period allowed under a notice issued under section 142(1), may furnish return for any previous year at any time 3 months before the end of the relevant assessment year or before completion of the assessment, whichever is earlier.
However, a belated return attracts late filing fees under section 234F.
As per section 234F, late filing fees of Rs.5,000 shall be payable if return furnished after due date specified under section 139(1). However amount of late filing fees to be paid shall be Rs.1,000, if the total income of the person does not exceed Rs.5 lakhs.
Q- Can a return of income be filed after the expiry of due date to file belated return?
Ans– The Finance Act 2022, has inserted subsection (8A) in section 139 to enable the filing of an updated return. The section provides that an updated return can be filed by any person irrespective of the fact whether such person has already filed the original, belated or revised return for the relevant assessment year or not (subject to certain conditions).
An updated return can be filed at any time within 24 months from the end of the relevant assessment year.
Q- If I have paid excess tax how will it be refunded to me?
Ans– The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.
Q- Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?
Ans– Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty.
Q- Am I liable for any criminal prosecution [arrest/imprisonment, etc.] if I don’t file my Income-tax return, even though my income is taxable?
Ans– Non-payment of tax attracts interests, penalty and prosecution. The prosecution can lead to rigorous imprisonment from 3 months to 2 years (when the tax sought to be evaded exceeds Rs. 25,00,000 the punishment could be 6 months to 7 years).
Q- Do I need to file the income-tax return even when I have paid all the taxes in advance?
Ans– Filing of Income-tax return for individaul is mandatory for every person whose income (before considering certain exemptions and deductions) exceed maximum exemption limit. With effect from Assessment Year 2020-21, it is mandatory for every person, who is not required to furnish return of income under any other provision of section 139(1), to file return of income if during the previous year he:
1. Has deposited an amount (or aggregate of amount) in excess of Rs. 1 crore in one or more current account maintained with a bank or a co-operative bank.
2. Has incurred aggregate expenditure in excess of Rs. 2 lakh for himself or any other person for travel to a foreign country.
3. Has incurred aggregate expenditure in excess of Rs. 1 lakh towards payment of electricity bill.
4. Fulfils such other conditions as may be prescribed.
The CBDT vide notification No. 37/2022, dated 21-04-2022, has notified additional conditions under the seventh proviso to section 139(1) whereby return filing is made mandatory. These additional conditions are as follows:
1) If total sales, turnover or gross receipt of the business exceeds Rs. 60 lakh during the previous year; or
2) If total gross receipt of profession exceeds Rs. 10 lakh during the previous year; or
3) If the total of tax deducted and collected in case of a person during the previous year is Rs. 25,000 or more. The threshold limit shall be Rs. 50,000 in case of a resident individual of the age of 60 years or more; or
4) If the aggregate deposit in one or more savings bank accounts of the person is Rs. 50 lakhs or more during the previous year.
Saved By Legitimate Tax Planning For Our Clients
Sometimes you may find yourself in difficult situations and not be able to defuse
the situation without going to court.
Recovered from Tax Authorties as Tax Refunds For Our Clients
Sometimes you may find yourself in difficult situations and not be able
to defuse the situation without going to court.
Get In Touch
Sumeet’s accountancy support is first class. He went out of his way to provide excellent support and advice. If you are looking for a trustworthy and reliable accountancy service in Delhi, Sumeet and his team will look after you.
Sumeet was recommended to us by a friend when we purchased property in New Delhi and needed a local professional to handle our accounting needs. His professional expertise has been invaluable in dealing with the Indian tax laws.