NRI zero tax return

First of all its a very informative forum for Finance and Tax related insights.

I am an NRI and am keen to file a Tax return. Please note this is the first time I will file a return. I have joint NRE accounts with my spouse who is PIO.

My income for the year is from NRE interest, NRO interest, Dividends from Stocks, STCG on sale of stocks. The total income however, is below the taxable amount limit. TDS has been cut on NRO interest and STCG. I have made PPF investment of 1 lac for the year.

Considering above my queries are as follows 1. Do I need to mandatorily file return for AY 2011-2012.
2. Should I file separate returns for myself and my spouse 3. Which return forms do I need to use - for myself and for my spuse. 4. Do I have to include the NRE interest under the income. 5. Do I split the NRE and NRO interest income as I and my wife have joint NRE/NRO account. 6. Do I have to declare in the Annual Information Return investments made in MF which would be over 2.25 lacs for the AY 2011-2012. Also I have invested around 3.5 lacs in a baseket of 10 different stocks over the year. The MF & Stock Investments are only in my name and not held jointly with my spouse.

Look forward to your inputs. Thanks in advance.

asked Apr 30 '12 at 11:59 by NRIPIO 16126

Dear Pankaj Thanks for prompt reply. I went through the ITR2 but I think since this is the first time I want to file return I may as well go in for paid professional services. Just apprehensive about making any mistakes first time round. Any leads will be appreciated.
(May 01 '12 at 17:51) NRIPIO
Somebody would contact you soon for the services.
(May 01 '12 at 18:26) Pankaj Batra
Thanks a lot. Have received an email and will pursue the matter further with the given reference.
(May 02 '12 at 14:30) NRIPIO

  1. You need to file income tax return as you have short term gains. In case of NRI have STCG, its mandatory to file income tax return even if total income tax below taxable range.
  2. You would need to file separate return for yourself and spouse.
  3. Income tax return needs to be filed with ITR2 form.
  4. NRE account interest is not taxable in India so you need not to add that to your Indian income.
  5. In case of joint account, you would have to split interest income between both of you. This split should be in same ratio as contribution done.
  6. Now annual information return section has been removed from ITR forms so you need not be filling same.

answered May 01 '12 at 11:24 by Pankaj Batra 5.2k320


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Asked: Apr 30 '12 at 11:59

Seen: 2,361 times

Last updated: May 02 '12 at 14:30