Indian expatriates residing in the UAE are reminded to file their Income Tax Returns ( ITR) for the financial year 2024-25 before the deadline of July 31, 2025. Timely filing ensures compliance with Indian tax laws and helps in claiming eligible refunds, as per a report by Gulf News.
A significant change this year is the increase in capital gains tax rates, effective from July 23, 2024. Long-term capital gains (on holdings over 12 months) are now taxed at 12.5%, up from 10%, while short-term capital gains (on holdings under 12 months) are taxed at 20%, up from 15%. This adjustment affects investors, particularly those trading in listed shares and securities.
According to Gulf News, to facilitate accurate filing, expatriates should gather necessary documents, including bank statements, rental agreements, interest certificates, property documents, capital gains reports, investment proofs, and identification documents such as Aadhaar, PAN, and passport with UAE visa or Emirates ID. Additionally, details of unlisted shares and home loan interest certificates are required.
It is a common misconception among non-resident Indians (NRIs) that tax deducted at source (TDS) eliminates the need for filing an ITR. However, filing is essential to claim refunds and avoid penalties. A survey indicated that 90% of NRIs who had TDS deducted but did not file returns missed out on potential refunds.
Income subject to tax in India includes salary earned for work done in India or paid by the Indian government, rental income from property in India, interest income from NRO accounts, fixed deposits, and bonds, capital gains from shares, mutual funds, property, or gold, and business income from ventures controlled or operated in India. Interest on NRE and FCNR deposits is exempt from Indian tax.
Filing ITR before the deadline offers several advantages, such as claiming TDS refunds, carrying forward losses to offset future gains, establishing income proof for loan, visa, and insurance applications, and supporting claims in compensation cases, especially for the self-employed.
NRIs with income exceeding INR 250,000 (approximately AED 12,488) are required to file a return, even if TDS has been deducted. Those with income exceeding INR 5 million (approximately AED 249,772) must also disclose their Indian assets and liabilities.
A significant change this year is the increase in capital gains tax rates, effective from July 23, 2024. Long-term capital gains (on holdings over 12 months) are now taxed at 12.5%, up from 10%, while short-term capital gains (on holdings under 12 months) are taxed at 20%, up from 15%. This adjustment affects investors, particularly those trading in listed shares and securities.
According to Gulf News, to facilitate accurate filing, expatriates should gather necessary documents, including bank statements, rental agreements, interest certificates, property documents, capital gains reports, investment proofs, and identification documents such as Aadhaar, PAN, and passport with UAE visa or Emirates ID. Additionally, details of unlisted shares and home loan interest certificates are required.
It is a common misconception among non-resident Indians (NRIs) that tax deducted at source (TDS) eliminates the need for filing an ITR. However, filing is essential to claim refunds and avoid penalties. A survey indicated that 90% of NRIs who had TDS deducted but did not file returns missed out on potential refunds.
Income subject to tax in India includes salary earned for work done in India or paid by the Indian government, rental income from property in India, interest income from NRO accounts, fixed deposits, and bonds, capital gains from shares, mutual funds, property, or gold, and business income from ventures controlled or operated in India. Interest on NRE and FCNR deposits is exempt from Indian tax.
Filing ITR before the deadline offers several advantages, such as claiming TDS refunds, carrying forward losses to offset future gains, establishing income proof for loan, visa, and insurance applications, and supporting claims in compensation cases, especially for the self-employed.
NRIs with income exceeding INR 250,000 (approximately AED 12,488) are required to file a return, even if TDS has been deducted. Those with income exceeding INR 5 million (approximately AED 249,772) must also disclose their Indian assets and liabilities.
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