Personal Finance

Tax dept issues return filing clarification for NRIs and OCIs

Updated : August 27, 2019 11:50 PM IST

In a huge relief for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), the IT department in a clarification has said that non-residents are required to pay tax only in respect of income received in India or income accruing or arising in India.

Non-residents are thus not required to disclose their assets outside India.

Therefore, non-residents should not be required to disclose details of directorship in foreign companies. The disclosure requirement in ITR forms should be limited only to assets and incomes which have a nexus with India, the release said.

“A taxpayer shall be required to answer the relevant question in the affirmative, only if he has held the foreign assets etc. at any time during the “previous year” (in India) as also at any time during the “relevant accounting period,” the release stated.

NRIs and OCIs were earlier asked to disclose Director-ship in a foreign listed or unlisted company irrespective of whether such a company was drawing any income from India or not.

CBDT considered representations of NRIs/OCIs not to disclose details of directorship in foreign companies and disclosure requirement should be limited to only to assets and incomes which have a nexus with India.

Tax dept issues return filing clarification for NRIs and OCIs

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