Finance, Forex and Investments

am NRI and having NRO fixed deposits in Indian banks. i have submited 15G form to avoid TDS?

I am NRI and having NRO fixed deposits in Indian banks. i have submited 15G form to avoid TDS but I have never file any income tax before nor i dont have any PAN, what are its implications and how can i proceed?

Public Comments

1. All income earned in India will come under the taxable category unless otherwise exempted. This will depend what type of deposit and income earned. Even if you do not have to pay any tax, my suggestion is that you file a nil return. This can be done any time without any penalty. If you do not have a PAN number, get one. It is not at all difficult to do it. You may need the help of a C.A of someone in India to guide you. This will help you whenever you return to India or whenever you make investments in India.
2. NRIs cannot file 15G forms. Even if filed, the form will have no effect on the Tax Deductor. By Law, any person making any payment to an non resident is required to deduct tax at source. General percentage is 30 plus 3 % edu. cess. Please obtain a PAN with the help of ICICI Bank. Log on to their website www.icicibank.com. Please file a return and take the refund of tax deducted, if your total income from FDs in India is less than Rs. 1,50,000 (upto 31.3.2009) and Rs. 1,60,000 (after 1.4.2009). NRIs have to make a special application to the Assessing Income Tax Officer who has jurisdiction to assess their income and only if the ITO permits, no tax will be deducted.
3. Get a PAN No.,file the IT return and claim refund. Legally no bank should accept Form 15G if you are a non resident,and must deduct 30% of the interest earned as TDS.
4. What Mr. Balasubra said is correct. By chance if the bank accepts 15g, you are Lucky. If your deposits are growing in India, it is better to file tax returns. Do not issue 15G which is against law (for NRIs.) Let the bank deduct TDS. File returns and obtain refund. Filing tax returns and TDS refund is some what difficult. But no other chance,
5. Even for NRI for FY 2008-9, Rs. 1,50,000 is not subject to tax. If your India source income is more than Rs. 1,50,000, only then you are required to file the tax return. For information on your India Income Tax return and to download the forms, go to http://mytaxes.in/index.php?topic=32.0.