|Does the assessee who is a non-resident in India, residing in a foreign country and having genuine business in the foreign country need to disclose the information of bank accounts abroad in the return of income?
|Section 139(1) of the Income-tax Act 1961, provides that:
“Every person –
a) being a company or a firm or
b) being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to Income tax, ----“
shall on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed:----“
Thus, a person is liable to file his return of income, if his income is chargeable to tax and exceeds the exemption limit, but the ambit of taxation varies with the factor of residence in the previous year.
Persons who are non-resident in India in the accounting year are chargeable to tax on:
i) Income received or deemed to be received in India, and
ii) Income which accrues or arises or is deemed to accrue or arise in India.
So, the non-resident in India is chargeable to tax in India, only if he receives or deemed to be received any income in India or income which accrues or arises or is deemed to accrue or arise in India. Till then, he is not required to file any return of income, unless he is claiming any income tax refund.
Thus, any non-resident having income chargeable to tax claiming refund and not having his bank account in India may at his option furnish the details of one foreign bank account, so that, the Department may credit his refund in that account. Therefore, column of 14(c) in Form No. 2 provides that “non-residents, who are claiming income tax refund and not having bank account in India may, at their option furnish the details of one foreign bank account”.
|CA. H. N. Motiwalla
|Return of income - Details of foreign bank account in case of non-resident u/s. 139(1)
Opinion Of Eminent Legal Luminaries On Controversial Issues
Return of income – Details of foreign bank account in case of non-resident u/s. 139(1)
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