Hi Shreekanth
As you would know that the IT department has updated the ITR 1 & 2 from this year itself for NRIs asking them to reveal their Foreign Bank Account details. What kind of implications will rise by providing these details?
You might remember me from my post regarding whether to file returns or not. I have been an NRI for the past 2 years FY 2015-16 & FY 2016-17. The only income that I have in India is FD interest to the amount of Rs. 60,000 on which TDS has been deducted and is reflecting in my 26AS. I thought of filing returns so that I dont get a non filers notice. But this change in ITR has got me concerned.
I asked my CA and even he is not sure as to why this new change in ITR and what would be the implications. Can you kindly throw some light on this topic and guide me and other NRIs who would be in the same boat like me. Is it mandatory to provide the foreign bank account details or is it optional or only for those who do not have a Indian bank account. Also what would be the implications if we share our Foreign Bank details. Will the IT officials end up asking for more details like Bank Statements etc.
Any insight from you would be very helpful.
Thanks
Prakash Parekh
5 Answers
Dear Prakash,
It is mandatory for Resident Indians to disclose their global income.
However, it is still not mandatory for NRIs or RNORs, though the new section has been included in new ITR form (i n a surprising move..).
You may kindly go through below useful article on this topic :
Hi Sreekanth
Thanks for your reply. The 2nd article does mention that those who have both indian and foreign account can give details of either of the two. But is that confirmed by the IT department ? Because I am yet to file my returns for FY 2016-17 and am not sure whether to provide my foreign account details or not. Also would like to know the implications if I provide or if I dont provide. My CA is trying to find out but is not getting anything. Thanks
Prakash
Thanks for your reply. The 2nd article does mention that those who have both indian and foreign account can give details of either of the two. But is that confirmed by the IT department ? Because I am yet to file my returns for FY 2016-17 and am not sure whether to provide my foreign account details or not. Also would like to know the implications if I provide or if I dont provide. My CA is trying to find out but is not getting anything. Thanks
Prakash
Dear Prakash,
I do not find any notification or circular of the IT dept which says that it is mandatory to provide Foreign a/c details. So, I believe that it is still optional.
I strongly believe that Govt/IT dept may soon make this a mandatory input in ITRs. So, may be it is prudent to disclose your foreign account details after consulting your CA.
Hello Sreekanth,
Thanks for your prompt response. And most importantly thanks a lot for such a great blog site which helps novices like us. I just found a new article on Economic Times which confirms that it is not mandatory to provide foreign account details. I thought I will share it with you and all.
ET article Link :
https://goo.gl/6jJv1r
Thanks
Prakash Parekh
Dear Prakash,
Yes, the ministry of Finance has issued a press release yesterday (24-July-2017) regarding this matter :
"Refund generated on processing of return of income is currently, credited directly to the bank accounts of the tax-payers. Availability of the detail of bank accounts in which the refund is to be credited is a precondition for direct credit of refund in the bank accounts
Income-tax Return Forms for the Assessment Year 2017-18 were notified on 30th March, 2017. A number of representations were received from the non-residents that they are facing difficulties in getting refund as they do not have bank account in India and there is no column in the notified form of return of income for reporting details of foreign bank account by the non-residents for this purpose.
In view of this, a facility has been provided in return utility for reporting of details of bank account by non-residents, who do not have bank account in India and who are claiming income-tax refund. Therefore, the non-residents who are not claiming refund or non-residents who are claiming refund but having a bank account in India are not required to furnish details of their foreign bank account in the return of income. However, the 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 in the return of income for issuance of refund. " Source : Press Release Link - PIB
Income-tax Return Forms for the Assessment Year 2017-18 were notified on 30th March, 2017. A number of representations were received from the non-residents that they are facing difficulties in getting refund as they do not have bank account in India and there is no column in the notified form of return of income for reporting details of foreign bank account by the non-residents for this purpose.
In view of this, a facility has been provided in return utility for reporting of details of bank account by non-residents, who do not have bank account in India and who are claiming income-tax refund. Therefore, the non-residents who are not claiming refund or non-residents who are claiming refund but having a bank account in India are not required to furnish details of their foreign bank account in the return of income. However, the 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 in the return of income for issuance of refund. " Source : Press Release Link - PIB
Please login or Register to submit your answer