No need to reveal foreign bank account details for IT returns

dubai — Non-resident Indians (NRI) are not required to give details of their bank accounts held outside the country while filing their income tax returns (ITRs), if they are not seeking refunds, the Central Board of Direct Taxes (CBDT), the policy-making body for the income tax department, said.

In a statement, the CBDT said providing details of foreign bank accounts is not mandatory but optional. “It is optional for cases where refund is sought,” Sushil Chandra, CBDT chairman, was quoted as saying.

Chandra said this when asked to clarify if it was mandatory for NRIs to provide the details of their foreign bank accounts in certain return forms like the ITR-2. Chandra said that column in the income tax returns is to be filed in “only one condition, that is, if the NRIs are seeking a refund.”

The CBDT brought out new ITRs on March 31 and a newly introduced column in the ITR-2 seeks “details of foreign bank accounts held (including any beneficial interest) at any time during the previous year” from the assessee or the filer.

Manu Nair, CEO, Emirates Chartered Accountants Group, said till last year, an NRI assessee had to provide only the details of the bank accounts he was operating in India in the ITR. But from the current assessment year onwards, assessees have to provide their overseas bank account details as well if they seek refunds.

Nair said as of now the residents in India have to submit the details of their all overseas assets also through the income tax return. But this requirement is not applicable for expatriates. If the NRIs’ taxable income in India is more than Rs250,000 for the financial year

NRIs have neither to pay tax on his overseas income nor to disclose the details of such income in the tax return. Physical presence is not necessary for filing IT returns.” Manu Nair, CEO of emirates Chartered Accountants Group

2016-17, they also should file the ITR on or before July 31, 2017.

“Such taxable income includes the income from property, and interest. However, the NRIS have neither to pay tax on his overseas income nor to disclose the details of his overseas income in the tax return. Physical presence in India is not necessary for filing the income tax return.”

There have been complaints that the NRIs who do not have taxable income in India also receive email notification to submit their ITR. Allaying such fears, a tax expert said such emails are generated based on the information available from the PAN number.