Nri Law Updates

Income Tax Appellate Tribunal Cochin – The DCIT (International Taxation) Kochi vs K E Faizal – STCG On Equity Oriented Mutual Fund Not Taxable in India: Indo-UAE Treaty – July 8, 2019

Assessee, an individual (NRI), resident of UAE, a non-resident in relevant AY ie 2012-13 in India, derived income from short term capital gains (STCG) from alienation of Equity Oriented Mutual Fund Units. AO considered that it is taxable in India under clause 13(4) of Indo-UAE Tax Treaty by considered these units as shares. CIT(Appeal) favored the assesse. On filing appeal with ITAT by the Income Tax Deptt, ITAT held that equity oriented mutual fund units are not share under clause 13(4), and the gains of these units should be treated as per the clause 13(5) of the treaty, hence, gains shall be taxable in UAE. Hence, no taxability will be in India. Appeal is allowed in favor of assesse.

Bombay High Court – Pr. Commissioner Of Income Tax-15 vs Shri Binod Kumar Singh  – Residential Status – April 22, 2019

AO has determined the assessee a ‘Resident’ considering his number of days stay in India for more than 60 days. Considering the Assessee long record of his business interests in foreign country, CIT(Appeal) and Tribunal have reversed the AO order and considered that the assessee will be categorized as Non-Resident on the basis of ‘182 Days’ criteria of section 6 of the Income Tax Act. As the assessee had migrated to a foreign country where he has set up his business interest and therefore his whatever travels to India, would be in the nature of visit. Assessee’s visits to India for more than 60 days but less than 182 days during the relevant previous year will be termed under ‘Visit’ category, hence, he will be non-resident in India.

ITR Forms 2019 Form – Applicable To FY 2018-19 ITRs – Additional Information Required By ITR 2019 Forms – For NRIs, Other Non-Residents Including OCIs PIOs

In the ITR Forms 2019, the Income Tax Department of India have required following additional information from NRIs and other Non-Residents (ie OCIs, PIOs etc):

  • Number of Days Stay In India During Previous Financial Year (i.e. 2018-19 in the present ITR case).
  • Number of Days Stay In India During 4 Preceding Financial Year (i.e. 2014-15 to 2017-18 in the present ITR case).
  • Tax Jurisdiction of the Country of Residence. So, eg if an NRI or PIO is residing in USA, then USA will be submitted as Country of Residence in the ITR form.
  • Tax Identification Number of the Country of Residence. Here, the Tax ID number of the country of residence of NRI/PIO needs to be provided in the ITR form.
  • Passport Number. If any NRI/PIO does not have an Identification number in the Country of Residence then he/she can provide his passport number in the ITR form.

Above is the information specifically in relation to NRIs, PIOs, which needs to be provided in the ITR forms FY 2018-19. There is additional information also, which needs to be provided as per the applicability of case (Refer ITR Forms FY 2018-19 section of our website).