Question 1

Is it mandatory for NRIs to file income tax in India?

Accepted Answer

Yes, if your income in India exceeds the basic exemption limit, filing an ITR is mandatory.

Question 2

What is DTAA and how does it help NRIs?

Accepted Answer

DTAA (Double Taxation Avoidance Agreement) prevents NRIs from being taxed twice on the same income in two countries.

Question 3

Can I claim a refund as an NRI?

Accepted Answer

Yes, if excess TDS has been deducted, you can claim a refund by filing your return.

Question 4

Do I need to be physically present in India to file taxes?

Accepted Answer

No, the entire process can be completed online.

Question 5

What happens if I don’t file my ITR?

Accepted Answer

You may face penalties, interest, and difficulty in future financial transactions in India.

Question 6

What is DTAA?

Accepted Answer

DTAA is an agreement between two countries to prevent double taxation of the same income.

Question 7

Who can benefit from DTAA?

Accepted Answer

Individuals, NRIs, expatriates, and businesses earning income in multiple countries.

Question 8

What is a Tax Residency Certificate (TRC)?

Accepted Answer

A TRC is proof of tax residency required to claim DTAA benefits.

Question 9

Can DTAA reduce tax liability?

Accepted Answer

Yes, it provides relief through exemptions, credits, or reduced tax rates.

Question 10

Is DTAA benefit automatic?

Accepted Answer

No, benefits must be claimed with proper documentation and compliance.

Question 11

What is FEMA compliance?

Accepted Answer

FEMA compliance refers to adherence to regulations governing foreign exchange transactions in India.

Question 12

Who needs to comply with FEMA?

Accepted Answer

Any individual or business dealing with foreign investments, remittances, or cross-border transactions.

Question 13

What are common FEMA filings?

Accepted Answer

FC-GPR, FC-TRS, FLA return, ODI reporting, and ECB filings.

Question 14

What happens if FEMA compliance is not met?

Accepted Answer

Non-compliance can lead to penalties, compounding proceedings, and legal consequences.

Question 15

Can past non-compliance be corrected?

Accepted Answer

Yes, through proper rectification and compounding procedures with RBI approval.

International Tax & Cross-Border

NRI Tax Return Filing