Expat Tax Preparation

"Non-Resident" is a person who is not Resident in India. The residential status of an individual in a given year determines whether the individual is Resident or Non-Resident for that given year.Thus, the residential status of an individual needs to be determined every year. For more details, read.

You are considered as "Resident in India" for a financial year if you stayed in India - for a period of 182 days or more during the Financial year;
Or
for 60 days in the financial year and for a total of 365 days in the preceding 4 years. There are certain exceptions to the above condition of 60 Days i.e. only the test of first condition is done in these cases:

• If you are an Indian citizen who has left India in the financial year as a crew member of an Indian ship or for the purposes of employment abroad; or
• If you are a Person of Indian Origin(PIO) or a citizen of India who comes on a visit to India;

Therefore, you are a Non-Resident if you do not fulfil any of the above conditions.

No. You are not required to be physically present to file & verify your income tax returns. You can file income tax return online from anywhere in the world. You can now e-verify your ITR from anywhere . You can send signed copy of ITR-V to the CPC Income Tax Department, Bengaluru or e-verify the same within 30 days from the date of filing your ITR.

The answer is YES. After you have determined your residential status, the next step is to identify whether your income is taxable or not in India as per your residential status determined under Income Tax Act,1961.

• For Resident Individuals: Your Global income is taxable in India i.e. income earned whether in India or outside India is taxable in India.
• For Non-Resident Indians: Only income earned or accrued in India or deemed to be so is taxable in India. Therefore, your income from any country besides India is not taxable in India.

Essential Documents for NRI ITR filing

• PAN Card: Mandatory for filing taxes.
• Passport: For identity and nationality verification.
• Salary Slips & Form 16: Details of salary income.
• Bank Account Details: Indian account for tax refunds.
• Investment Details: Declare Indian investments.
• Tax Payment Receipts: Proof of tax payments.
• Foreign Assets Info: Details of foreign accounts/investments.
• Rent Receipts: If earning rental income.
• Indian Property Details: Information on owned property in India.

Additional documents may be needed based on specific circumstances, like TDS certificates or agricultural income details.

In case your property is 3 years (2 years from F.Y 2017-18) old, then long term capital gain will arise on the event of sale. On such gains, tax is payable @ 20% .However, you can reduce your tax liability using investment options given under various provisions to save yourself from payment of capital gain tax.

Tax implications for NRIs are also applicable in the case of inheritance. In case the property has been inherited, remember to consider the date of purchase of the original owner for calculating whether it’s a long term or a short term capital gain. In such a case the cost of the property shall be the cost to the previous owner.