NRIs Under Scrutiny: Watch Your Days Spent in India!
Attention NRIs! The income tax department is keeping a close eye on your time spent in India. They’re asking some of you to swear on affidavits exactly how many days you were here in certain years, to see if you owe any taxes.
Why the fuss?
Normally, NRIs don’t pay Indian taxes on their overseas earnings or declare foreign assets. But if you overstay in India (more than 181 days in a year), the same tax rules as residents apply. And the I-T department is going back as far as 2014-15 to check!
What’s the catch?
Some NRIs who stayed longer than planned during 2020-2021, but kept filing as NRIs, might be in for a surprise. Filing a false affidavit is a serious offense, with penalties under the Income Tax Act and even the Black Money law.
What can you do?
- Be honest: If you overstayed, come clean. It’s better than getting caught later.
- Gather proof: Passport stamps can help track your days in India, but for other countries, it might be trickier. Keep travel documents handy.
- Seek professional help: A Chartered Accountant (CA) can guide you through the complexities of residency rules and tax implications.
Future examples:
- Imagine an NRI who stayed in India for 200 days in 2021 but filed as an NRI. They might get an I-T notice asking for an affidavit and proof of their whereabouts.
- A high-earning NRI spending 150 days in India and earning more than ₹15 lakh from Indian sources might be classified as an RNOR (resident but not ordinary resident). They wouldn’t owe tax on foreign income, but their foreign earnings would be taxable in India.
Remember: Honesty is the best policy, especially when it comes to taxes. If you’re unsure about your residency status or tax obligations, consult a CA for expert advice.
Disclaimer: This simplified explanation is for informational purposes only and should not be taken as professional tax advice. Please consult a qualified CA for personalized guidance.
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