Name: Savetaxs
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Question 1

Why Must NRIs Living in the UAE File Income Tax Returns?

Accepted Answer

NRIs living in the UAE should file an income tax India in Dubai UAE for the following reasons.

You want to claim a refund.
You have a loss you want carried forward.
You want to submit to any authority or financial institutions.
You want to avoid any penalties from the income tax authorities and comply with the tax requirements.

Additionally, even if your income is not eligible to file an income tax return, filing it is preferable. You must do it to keep all your tax and financial records clean and in place. This ensures compliance with the Indian Income Tax Department.

Question 2

What Is the Due Date for Filing ITR for NRIs in the UAE?

Accepted Answer

For many NRIs, the due date is July 31st for the assessment years. However, if the audit is applicable, the due date can be 31st October. Just ensure that late filings attract.

Late fees under section 234F.
Interest under section 234A, 234B, and 234C.

Question 3

Is DTAA Applicable Between India and the UAE?

Accepted Answer

Yes, India and the UAE are bound by the Double Taxation Avoidance Agreement (DTAA). However, since the UAE has no income tax on individuals, the DTAA benefits are limited to such cases:

Avoiding double taxation.
Determining tax residency.
Capital gains clarity in specific situations.

Question 4

What Happens if an NRI in Dubai Does Not File an ITR in India?

Accepted Answer

Non-compliance in filing the Indian income tax may result in

Income tax notices from the income tax department.

Loss of refund eligibility.
Additional penalties due to non-compliance and interest.
Issues in the property sale or repartition.
Non-compliance with NRI taxation can create complications during future compliance or scrutiny.

Question 5

What Are the Advantages of Filing ITR in India as an NRI Living in the UAE?

Accepted Answer

As an NRI living in the UAE who generates income in India, you must file an ITR because:

It ensures compliance with the Indian Income Tax Department if you file a return on time, and thus, it portrays you as a responsible citizen of India.
Filing ITR increases the chances of your loan getting approved, especially for a home loan or a personal loan.
Filing timely income tax notices eliminates the chance of you getting any legal notices from the Income Tax Department of India.

Question 6

Who Is Responsible for Filing the ITR in India?

Accepted Answer

NRIs living in the UAE: if you fall under any of the following categories, it is non-negotiable for you to file your income tax returns within the time frame defined by the Indian Government and the Indian Income Tax Department.

NRIs whose total gross income of a financial year is more than the basic exemption limit set by the Indian Income Tax Department.
NRIs who have suffered from any loss, either from a profession or business, or a capital loss.
Any NRI claiming tax relief under section 90 or 90A or tax deduction under section 91 of the Income Tax Act.
Any NRI who might not have taxable income but has deposited TDS or any advance tax amendments is required to file an ITR to get the refund.

Question 7

What Information Must NRIs Living in the UAE Provide in Their Tax Returns?

Accepted Answer

You must provide the general information, such as:

Your PAN Number
Your Passport Number
Your Aadhaar Number (if you hold one)
Your Email address and the mobile number.
Residential Address in India and the UAE.

Then you must provide details of the income earned in India, such as:

Interest Income:

Bank Account Interest: Interest from bank accounts such as your NRO/NRE bank account statement, TDS Certificate (Form 16A), and the interest certifcate from the bank.
FD Interest: FD Advice, TDS certificate ( Form 16 A) if NRO Fixed Deposit, Interest Certificate, or FD Statement from the bank.

Rental Income:

The Actual Rent Received: The clear rental agreement with the details of the tenant and the amount of the rent that is received every month.
The Municipal Taxes Paid by the Owner: Must have the Receipt/Bill copy.
TDS Certificate: Required when an NRI receives rent from the company.
Loan Certificate: When an NRI has taken a loan against the property, the bank issues an interest certificate in their name, which reflects the Schedule of Repayment with the Principal and Interest amount to claim any deduction.

Capital Gains:

Capital gains are from the sale of immovable property:

Sale Agreement
The allotment letter or the purchase agreement.
TDS certificate ( Form 16B) from the buyer.

Capital gains from the sale of securities:

Contract Notes
Capital gains or the loss statement.
Transaction statement.

Income from other sources: This includes income an NRI receives from PPF or PF accounts, interest from other securities, dividends from companies, royalties, surrender amounts, or maturity proceeds from ULIPs, etc.

However, please note that the aforementioned details to be included while filing an NRI ITR are standard; you may also need to provide additional information depending on your specific case. Hence, for complete compliance and error-free NRI ITR filing, we advise you to contact the Indian income tax agency in the UAE, Savetaxs.

Question 8

What Is the Information Required to File a TRC Certificate in the UAE as an NRI?

Accepted Answer

For individuals filing a TRC in the UAE as NRIs, the required information is as follows.

Information for the particular year for which the TRC is needed.
Tenancy Contract with Ejari.
Passport copy along with the VISA Page.
Valid Emirates ID.
Bank statements dated at least the last six months, which the respective bank officer must document.
A stay report from the UAE immigration.

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