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UAE NRI: ITR Filing in India mandatory or not, what is deadline<\/strong><\/p>\n Many Indians who are living in the UAE and have Non-Resident Status<\/strong> are under confusion if they are required to file Income Tax Return (ITR) in India or Not. Through this article, let us try to resolve the same.<\/p>\n Residential Status of the taxpayer<\/strong><\/p>\n First, one is required to find our residential status. Obviously, if you are resident, then 100% of your income, including the global income, is taxable in India.<\/p>\n In case you are a Non-Resident as per Income Tax, then only the Income which accrues or arises in India is taxable.<\/p>\n Even if you have Non-Resident Status, ITR Filing might be required:<\/strong><\/p>\n For Non-Residents, Income which accrues or arises in India is taxable. So UAI NRIs need to be careful on Incomes like:<\/p>\n Please note that interest earned on NRE<\/strong> and FCNR<\/strong> deposits<\/strong> is not subject to taxation.<\/p>\n Do NRIs get the Slab Benefit?<\/strong><\/p>\n Yes, NRIs also get the slab benefit. So if your Income is up to Rs. 250,000<\/strong> (nearly AED 10,787<\/strong>), you are exempt from Income Tax or Filing the tax return. However, NRIs with an income above Rs. 250,000<\/strong> must file the return.<\/p>\n Additionally, NRIs whose income is more than Rs 1 Crore<\/strong> (nearly AED 431,513.43<\/strong>) must also report their Indian assets<\/strong> and liabilities<\/strong>.<\/p>\n Can NRIs opt for the New Tax Regime?<\/strong><\/p>\n Yes, NRI can opt for the New Tax Regime. In that case, if your Income is up to Rs. 300,000<\/strong> (nearly AED 12,945<\/strong>), you are exempt from Income Tax or Filing the tax return.<\/p>\n However, it is advisable to file Income Tax Return if you have Income in India even if your income is below the slab limit.<\/p>\n Can an NRI Claim 7 Lakh Rebate Benefit (FY 2024-25?<\/strong><\/p>\n No, Rebate benefit is only allowed to individual resident in India and not Non-Residents.<\/p>\n Due Date of Filing ITR<\/strong><\/p>\n Indians who are living in the UAE<\/strong> should file their Income Tax Returns (ITR<\/strong>) for FY 2024-25<\/strong> before the due date of July 31, 2025<\/strong>. Filing your ITR in time would avoid any unnecessary penalties<\/strong> and ensure compliance<\/strong> with Indian Tax Laws.<\/p>\n Tax Rates on Capital Gains<\/strong><\/p>\n The increased tax rates for capital gains are effective from July 23, 2024<\/strong>. The long-term capital gains (LTCG<\/strong>) are subject to 12.5%<\/strong> tax and short-term capital gains (STCG<\/strong>) are taxed at 20%<\/strong>. The previous rates for LTCG and STCG were 10%<\/strong> and 15%<\/strong>, respectively.<\/p>\n Documents required for Filing ITR<\/strong><\/p>\n The expatriates<\/strong> should get ready with their documents to ensure correct filing. These documents include bank statements, investment proofs, interest certificates, property documents, capital gains reports, rental agreements<\/strong> and identification documents such as Aadhaar, PAN<\/strong>, and passport<\/strong> with UAE visa<\/strong> or Emirates<\/strong> ID<\/strong>. Along with these documents, the details of unlisted shares<\/strong> and home loan interest<\/strong> certificates<\/strong> are needed.<\/p>\n TDS deduction is not equivalent to ITR Filing<\/strong><\/p>\n Many NRIs think that there is no need to file an ITR if TDS<\/strong> (Tax Deducted at Source) has been deducted. Please understand that TDS deduction is not equivalent to ITR Filing\u00a0<\/strong>and Non-Filing of ITR can invite unwarranted Interest and penalties. Also, you need to file an ITR to claim a refund in case excess TDS\/ TCS has been deducted from your Income.<\/p>\n It is important to file ITR before the due date as it offers many benefits, including claiming TDS refunds<\/strong>, carrying forward losses<\/strong> to offset future gains, and serving as income proof<\/strong> for loan approval. It also offers other benefits, such as supporting claims<\/strong> in compensation cases for the self-employed.<\/p>\n<\/div>\n\n