The Central Board of Direct Taxes (CBDT) has decided to extend the last Date for filing of income tax forms of non-resident Indians (NRIs) for the assessment year 2020-21 till June 30. In addition, the decision has been taken considering the problems faced by taxpayers on the new income tax portal.
The new portal was launched on June 7, 2021, aiming to provide taxpayer convenience and an enhanced, seamless experience.
The Board elaborated, “given the difficulties brought up by taxpayers in electronic filing of income tax forms 15CA/15CB on the portal www.incometax.gov.in, it has been decided that non-resident taxpayers can submit them manually to the authorised dealers by June 30, 2021.”
The Board has also advised authorised dealers to accept the forms till the end of this month for foreign remittances.
The Central Board of Direct Taxes added that a facility would be provided on the new e-filing portal to upload these forms later for generation of the Document Identification Number (DIN).
If you are an NRI and you’re eligible to pay tax on your income earned in India but having difficulty filing your income tax return, here’s a guide for you:
Determine your residential status
The first step is to ensure your residential status, which must be determined concerning a financial year. It, however, is slightly complex when you move abroad initially. The residential status is determined under Section 6 of the IT Act 1961. The number of days you reside is crucial as an NRI must reside outside India for 182 days or more. Otherwise, he would be considered as a resident.
Calculate your Taxable Income
It would be best if you calculated your taxable income beforehand. If your total gross income exceeds INR 2.5 lakh, you are liable to pay taxes in India. This income may have several sources. It could be in the form of your salary or capital gains on the sale of shares and mutual funds. Interest from deposits in NRO accounts and rental income is also included in it.
NRIs, however, can claim benefits under tax treaties. You can also claim refunds if TDS is deducted from your income only if you reconcile TDS credit and advance tax as reflected in Form 26AS.
Verify IT returns
Once you have filed IT returns on the new income tax portal, you need to verify them within 120 days. Otherwise, it will be invalid.