Is 2011-2012 Tax filing required for non-residents if income from India is less than 1.8 lacs/year?

[Guest]

My income from India is interest from savings bank accounts, fixed deposits, dividends from
equity mutual funds. All of these are around 1.6 lacs.

1. Since I am working overseas, I do have bank accounts in that country. Are these(bank accounts) considered foreign assets due to which I have to mandatorily file income tax?

2. Does the mandatory filing rule for income over 10 lacs/year apply to non-residents like me?

3. I realize if I am getting any refunds like tax deducted from non-resident ordinary accounts or if I wish to avail indexation benefits, a tax return is required for me to get those, but it is not necessary as per the Income tax law to file tax returns. Is my understanding correct?

4. Any other factors I need to be aware of?

Thanks

[CABALRAM PANDEY]

As per section 115G ofIncome Tax Act, 1961,Where the total assessable income of the non-resident during the previous year consisted only of investment income and longterm capital gains relating to foreign exchange assets and tax on such income has been deducted at source then he need not file a return of income under section 139(1).

Foreign Exchange Assets Means the following:-

Any ‘specified asset’ which the assessee has acquired, purchased with or subscribed to in convertible foreign exchange. Such ‘specified assets’ are as follows:

(a) shares in an Indian company.

(b) debentures issued by an Indian company which is not a private company as defined in the Companies Act, 1956.

(c) deposits with a non-private Indian company.

(d) any specified securities of Central Government.

(e) units of the Unit Trust of India.

(f) such other assets as may be notified by the Central Government.

The income derived from such a foreign exchange asset is called investment income.

“Investment income” means any income derived (other than dividends referred to in section115-O) from a foreign exchange asset.

“Long-term capital gains” means income chargeable under the head “Capital Gains” relating toa capital asset, being a foreign exchange asset which is not a short-term capital asset.

 In India Dividend from Indian company is exempted u/s 115-O, hence you need not to file Income Tax Return if all of the specified conditions you fulfilled.

AI Summary

Non-resident filing requirement: no return needed for investment income or long-term capital gains from foreign exchange assets if tax deducted. Non-resident individuals whose Indian income consists only of investment income and long-term capital gains from foreign exchange assets with tax deducted at source need not file an income tax return if specified conditions are satisfied; foreign exchange assets include specified shares, debentures, deposits, government securities and UTI units, and dividends exempt under the dividend provision do not create a filing obligation, though refunds or indexation claims require filing.