India Tax Filing
Dollar Tax Filer established a separate processing wing for who are required to file Indian Tax Returns for its US tax clients. An individual taxpayer who is either a full year non-resident/ part year resident of India during 2016 tax year may still need to file the tax returns in India.
And as per sec 139(1) of Income Tax Act 1962, every person has to furnish a return of his income on or before the due date, if his total income exceeds the basic exemption limit. If an NRI has performed his job in India, his salary income will be taxable here, irrespective of where the salary is credited to his account. On the other hand, if an NRI has worked abroad but received his salary in India, this will be included in his taxable income here.
Any income of an NRI that originates in India or is received in India is taxable here. Some examples are
- Salary income, (Earned in India)
- Rental income from property owned in India
- Income from sale of securities and assets held in India.
- Interest Income
- Capital gains
PAN RELATED SERVICES
Permanent Account Number (PAN) is a code that acts as identification for Indian nationals, especially those who pay Income Tax. It is a unique, 10-character alpha-numeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act, 1961.
It is also issued to foreign nationals (such as investors) subject to a valid visa and hence, it is not acceptable as a proof of Indian citizenship.
The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy.
You will require it for the following purposes:- It is necessary to give the PAN card number when you buy or sell immovable properties in India.
- When you buy automobiles, you will have to give this number.
- Buying banker's draft, pay orders and checks require PAN card.
- If you buy shares or debentures exceeding the value of Rs. 1 lakh, you need to supply the PAN card.
- PAN card is necessary to make any deposit exceeding Rs. 50000.00.
- PAN card is also necessary for initiating a bank account, starting a demat account or applying for a credit card.
Other PAN services
- Name changes on PAN card
- Address and status changes on PAN card
- Apply for a duplicate PAN card
DEMAT ACCOUNT
A demat is to your shares what a bank account is to your money. Simply put, it is the account that holds all your shares in electronic or dematerialized form. Like the bank account, a demat account holds the certificates of your financial instruments like shares, bonds, government securities, mutual funds and exchange traded funds (ETFs). You cannot trade in the stock market without a demat account.
- You need to submit proof of identity and address along with a passport size photograph and the account opening form. Only photocopies of the documents are required for submission, but originals are also required for verification.
- During the process, an In-Person Verification would be carried out. A member of the DP's (Depository participant) staff would contact you to check the details provided in the account opening form.
- Once the application is processed, the DP will provide you with an account number or client ID. You can use the details to access your demat account online.
NRE and NRO Accounts
An NRI can choose a bank account from two options – An NRE account or NRO Account
What is an NRE Account?An NRE account is a savings or current account held in India that allows the account holder to repatriate funds that come from outside earnings and transfer earnings to India conveniently and securely. Money transferred to an NRE account from any foreign currency is converted to INR. It permits an NRI to hold and maintain foreign currency earnings in INR. The account holder may repatriate all the funds along with the interest earned at any point of time without having to pay tax on the interest amount. Any NRI can open an NRE account.
What is an NRO Account?An NRO account is a savings or current account held in India that helps NRIs manage income earned in India such as rent, dividends, or pension from abroad. The account holder can deposit and manage accumulated rupee funds conveniently through an NRO account. Foreign currency deposited into the NRO account is converted into Indian Rupees. Any NRI can open a NRO account.
Choosing the right account depends on examining your and your family's financial needs. If you foresee the need to repatriate more than a million dollars or if you want to maintain savings in INR then an NRE account may be the better option. If you want to keep India-based earnings in INR, then opt for an NRO account. With both NRE and NRO accounts, managing your funds as an NRI is made much more convenient and secure.