Income Tax: NRIs to fill up FSI & TR in ITR2 if claiming tax credit on foreign income

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New Delhi | July 31, 2018 12:55 AM

Know how NRIs will fill up FSI & TR in ITR2 if claiming tax credit on foreign income..

Income Tax: NRIs to fill up FSI & TR in ITR2 if claiming tax credit on foreign income

I am a senior citizen and confused regarding filling of ITR 2. Is it mandatory for permanent NRI to fill schedule FSI, TR and FA in ITR 2?
—P S Krishnan

Schedule FSI and Schedule TR have to be filled if any foreign income is taxable in India as well as in another country and on which any tax credit is being claimed in India. If you have any income and credit, you will need to fill these two schedules. Schedule FA is required only to be filled by the person who is ordinary resident in India. Since your residential status is non-resident for the relevant financial year, you are not required to report anything in this schedule.

Every year I file ITR 1 for salary and profess-ional income for which TDS is deducted under section 194J. But this year when I am filing ITR 1, it is asking for code and head of the TDS in form 26AS. How do I show the professional income as other income in ITR 1?
—Arvind Kumar

You will need to report this as such and consider filing ITR-4 if you fall in eligible categories of professional eligible for presumptive scheme of taxation. Otherwise, you will need to file ITR-3.

Last year I filed ITR 1 which was rejected because apart from salary income, I had income from consultancy work. Later I re-filed ITR4, for which I got only acknowledgement. There was no refund applicable, but still I have not got the final file which is sent by income tax department after the assessment. I have similar income this year too. Should I file ITR 1 or ITR4 this year?
—Kaushik Gupta

The applicability of form depends upon the nature of income. If for project work, there are no regular efforts, you can report this in ITR-1. If the transactions are regular in nature, it would be treated as business/ profession income. ITR-4 is for the purpose of reporting business/ professional income where the income is offered to tax on presumptive basis. Also, only certain notified professionals like doctors, lawyers, chartered accountants, interior decorator, technical consultants, interior decorator, technical consultants, etc., can use this scheme. Otherwise, you need to report it in ITR-3 which is a detailed form.

The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to fepersonal

Correction: A wrong picture was used with Amit Maheshwari’s responses in the edition dated July 24. We regret the error.

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