Deduction Of Tax At Source And Payment Of Advance Tax By NRIs

 

[Procedure for the Filing of Income Tax and Wealth Tax Returns, Assessment, and Refunds]

The income of a non-resident Indian in India in most cases is subject either to tax at source or payment of advance tax. Income by way of dividends, interest, winnings from lottery and other sums payable to non-resident Indians are subject to deduction of tax at source. Another method by which income tax payable by a non-resident Indian is collected in advance of the regular assessment is payment of advance tax. Advance tax is payable by the non-resident Indian in respect of his total income. Advance tax is payable in a financial year and is treated as a payment of tax in respect of the income of the previous year for an assessment year immediately following the financial year in which it was payable. Credit for such advance tax is given to the non-resident Indian in the regular assessment. A non-resident Indian who has been previously assessed by way of regular assessment is required to pay advance tax. Where the total income of the non-resident Indian taxable in India does not exceed `. 2,50,000, during the financial year 2015- 2016 he is not required to pay any advance tax. Further, where the tax payable on the basis of the total income as reduced by the income tax deductible at source exceeds `. 10,000 the non-resident Indian would be required to pay advance tax.

 

Where advance tax is payable, the assessee shall himself compute the advance tax payable on his current income at the rate in force in the financial year and deposit the same whether or not he has been earlier assessed. He need not file any estimate. The Assessing Officer can also serve an order for enhanced tax based on the total income of the latest previous year for which the assessment has been made or the returned income in the latest return, whichever is higher. In such a case also the assessee shall have the right to file his own estimate for advance tax and pay tax accordingly. He may submit a revised estimate of advance tax to reduce the amount determined by the Assessing Officer. The assessee is also entitled to revise the instalment of advance tax according to his estimate of current income without the requirement of filing a revised estimate of advance tax.

 

Under Section 211, up to 30%, 60%, and 100% of the advance tax payable shall be paid by 15 September, 15 December, and 15 March respectively. Any payment for advance tax before 31 March will be treated as advance tax. For companies, 15%, 45%, 75% and 100% of the advance tax shall be payable by 15 June, 15 September, 15 December and 15 March.

 

The provisions for interest are now contained in Sections 234B and 243C. The rate of interest under Section 234B for default in payment of advance tax is 1% p.m. for the period starting from 1 April of the following financial year to the date of regular assessment on the assessed tax less advance tax, if the advance tax paid falls short of 90% of the assessed tax. Under Section 234C, the rate of interest is 1% per month in case of deferment of instalments of advance tax or at 1% on the shortfall in the payment of tax till 15 March.

 

The Finance Act, 2003 has, w.e.f. 1.6.2003 inserted a new Section 234D to charge simple interest on excess refund granted at the time of summary assessment at the rate of one-half per unit p.m. for the months comprised in the period from the date of grant of refund to the date of the regular assessment.

 

As per Section 40(a) disallowance in respect of payments like rent, commission, interest, etc. will not be made in the case of the deductor for the expenditure even if payments are made by the last date of filing the income-tax return.

 
 
Procedure for the Filing of Income Tax and Wealth Tax Returns, Assessment, and Refunds
1. Income Tax Return To Be Voluntarily Filed And Tax Paid On Self-Assessment If An NRI has Taxable Income In India
2. The Assessing Officer Can Also Require The Non-Resident To File Income Tax Return
3. NRls Can Apply For Refund Of Income Tax By Filing Income Tax Return
4. Income Of Nris Is Generally Accepted Without Scrutiny
5. Regular Assessment After Personal Hearing, And Examination Of Papers, Etc. By The Assessing Officer
6. Ex Parte Assessment By The Assessing Officer
7. Re-Assessment Or Additional Assessment In Case Of Income Escaping Assessment
8. Completion Of Assessment And Payment Of Tax
9.Provision Regarding Penal Interest And Penalty For Delay In Filing Income Tax Return Or Payment Of Tax
10. Deduction Of Tax At Source And Payment Of Advance Tax By NRIs
11. Remedies By Way Of Appeal, Etc. Available To A Non-Resident Indian
12. Other Provisions For Rectification And Settlement Of Cases
13. Who can be an Agent of a Non-Resident Indian?
14. Procedure for getting a Permanent A/c Number (PAN)
15. Double Taxation Relief
16. Assessment Procedure for Wealth Tax
 
 
 
GST (India)
F.A.Q. on GST
GST Forms Download
GST Compensation Law
GST Enrollment Process
GST Law & Act.
GST Rules
GST Schedule ( I to V )
IGST Law & Act.
GST A Practical Knowledgebase
Filing GST Return
Enroll & Registration with GST
GST Office Tool to File GST Return
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
 
TAX @ KNOWLEDGE BASE !

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Tax Tutorials GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications

Tally.ERP9 Book Online Order Tally.ERP9 Book Content