Last date for filing tax returns in India is approaching and it’s a heads up time for Non residents Indians (NRIs) as well. NRIs must gear up to complete their paperwork before the due date. Let’s take a look at Top 10 Myths about Income Tax Return Filing for Non Residents in India .

Myth 1: Since I don’t stay in India, I am not required to file tax return in India. Fact: A non-resident is liable to pay income tax on the total income of a particular year derived from whatever source, which:

• Is received or is deemed to be received in India in such year by or on behalf of such persons.
• Accrues or arises or is deemed to accrue or arise to him in India during such year.

As an NRI, you are required to file income tax return in India for the financial year 2013-2014, if you meet any of the following criteria:

1. Your taxable income in India during the year is above the basic exemption limit of Rs 2 lakh; OR
2. You have earned short-term or long-term capital gains from sale of any investments and assets, even if the gains are less than the basic exemption limit. (examples are shares, mutual funds, property, etc); OR
3. You want to claim refund for TDS deducted more than your actual tax liability; OR
4. You have a house property and you are claiming interest on home loan and there is a loss under head’ Income from house property and you want to set off or carry forward this loss.

Myth 2: I will get the same tax slab benefits as other residents Indians. Fact: NRIs don’t get the benefit of differential limit on the basis of age or gender available to resident Indians. Also the enhanced exemption limit available to senior citizen is not available to NRIs. For NRIs, certain short term or long term capital gains from sale of investments or assets are taxed even if the total income is below the basic exemption limit. Myth 3: Since the TDS is already deducted on my Income, I don’t need to file return. Fact: As explained above, NRI has to compulsorily file tax return if he meets any of the above mentioned criteria’s. However, if you have only investment income (interest) and/or capital gain income and if the tax has already been deducted from such income, then in such cases you don’t have file income tax return. However, if the TDS deducted is more than your actual tax liability, then you need to file IT return and claim tax refund. Myth 4: All my income from capital gains is taxable Fact:  If you have earned long term capital gains from the sale of equity shares or equity mutual funds, you do not have to pay any tax and therefore you do not have to include that in your tax return. Myth 5:  If I don’t file return, nothing will happen and I am safe. Fact: Non-payment of taxes attracts interests, penalty and prosecution. The last date to file returns for the financial year 2013-2014 is July 31st 2014. However, remember the following:

No tax payable(All your taxes has been deducted at source)	You can file your return by 31st March 2015	No penalty
Tax payable	You can file your return by 31st March 2015	Interest of 1% per month for every month of delay from 31st July 2014 till the time you file your tax returns
Tax payable	You do not file your tax returns even by the 31st of March 2015	Penalty of Rs 5,000 for every year of delay

  However, note that irrespective of whether you had tax payable or not, you would not be able to avail of certain provisions if you do not file by 31st July. For instance, if you want to avail the benefit of carry forward, you must file your tax returns by 31st July 2014. Also you cannot revise a return that was filed late in the first place. You may also lose out on interest receivable on refund for the period of delayed filing. Myth 6: I can file my return only by giving a power of attorney to someone in India or by sending paper forms and documents to a representative in India who would then file returns on my behalf Fact: These are the traditional methods of return filing. Now, you can file your return by yourself using the online platform either through Income tax website or through other online service providers (for a nominal fee). Several websites also offer a mix of online and offline service and each works differently. Taxmantra.com also has such an offering that NRIs could use.Non Residents can take advantage of the service for e-filing of tax return by sending their details online and Tax mantra will then compute your tax liability and upload an error free ITR xml. Myth 7: E-filing is not safe Fact: E-filing is safer than paper filing as your return is going directly to the secured server of Income Tax department. But you must check the trust worthiness of the site you choose to prepare your income tax return. E-filing your tax return also provides greater accuracy than filing a paper tax return Myth 8: If I have not filed my Income Tax Return by the due date, I cannot file it later. Fact: You can file a return even after the due date. You can file a belated return. However, if any tax is payable by you will have to pay penal interest for delayed filing @ 1 % per month from the due date of filing till the date you actually file. Myth 9: The Income Tax Return once filed, cannot be revised Fact:  The normal due date of filing of income tax returns is 31st July of the year. However, in case you find any error or omission in the return filed, you can revise your return of income if the same was filed by the due date i.e. 31st July. Myth 10: If my tax has already been deducted it cannot be recovered later on. Fact: If the tax deducted at source is more than the actual tax liability, then you can claim the refund for the TDS by filing your income tax return. Even in case your tax liability is lower than the tax actually deducted you can claim the refund for the excess tax deducted from your income. To conclude: Thus if you are working from abroad and still earning income in India as Salary Income, Rental Income, Business Income, Capital Gains Income or any Other Sources Income then you are required to file income tax . You may require filing forms ITR-1, ITR-2 or ITR-4 as per your income source. These Top 10 Myths about Income Tax Return Filing for Non Residents in India should be kept in mind while filing income tax return filing in India. Please feel free to check our income tax return filing page for NRI.