For NRI’s who have questions about how much money you can remit from your NRO accounts every financial year and t. Here are a few things you should know!
When to file ITR?
In FY21, for an NRI, the amount not chargeable for tax is 2.5lakhs. If the amount is more than 2.5 lakhs, then the NRI is required to file ITR. This gross taxable income is supposed to be calculated before giving effect to deductions under Chapter VI-A (such as under Section 80C) or capital gains rollover exemptions (like under Section 54).
Recent amendment of ITR
There was a recent amendment made for ITR that clearly states that if an NRI deposits over 1 crore in many accounts in the Financial Year and even receives an interest of more than Rs2.5 lakhs, he/she is eligible to pay ITR. He is even eligible to pay tax in the
(i) When he spends over Rs2 lakhs for himself or any other person for travel to a foreign country.
(ii) Spends over Rs 1 lakh towards the consumption of electricity
According to Live mint, An NRI is required to file ITR if the gross taxable income exceeds the maximum amount not chargeable to tax.
What is the taxable value of a residential house in India?
- If an NRI has a self-occupied property, the taxable value of a residential house in India may be considered “nil”
- Two properties can be called self-occupied
When is a property called self-occupied?
(i) Occupied by the owner of his own residence
(Or)
(ii) When it cannot be occupied by the owner due to his employment, business or profession carried on at any other place, where he has to reside in a building not belonging to him.
On notional rent if there is a vacant property subject to deductions, the individual is liable to pay tax and this income will be added into the total income that gauges if it is exceeding the limit of Rs2.5lakh, related to the rule of filing an ITR.
That being said, even in the case of a vacant property an individual is liable to pay tax on notional rent, subject to deductions.
Are NRI’s Eligible to Remit $1 million from their NRO accounts In AFY?
On producing documentary evidence, an NRI, under the exchange control law is allowed to remit up to $1 million from the NRO account. In addition, if you need remittance exceeding $1 million, RBI needs to give special permission.
