Indian with Properties Overseas Needs to Report it in Income Tax Return

by Ms. Sonu Iyer,  EY

An Indian who has assets located outside India is required to report those assets in his/her Indian tax return if he/she qualifies as ordinarily resident in India in the financial year. (April 1 to March 31)

Residential status is determined on the basis of physical presence of the individual in India during a financial year.

If the individual satisfies any of the basic conditions mentioned below he would qualify as a resident, otherwise he would qualify as a non-resident: stay in India during the financial year is 182 days or more; or stay in India during the financial year is 60 days or more and in the four years immediately preceding the financial year is 365 days or more.

 

Ms. Sonu Iyer,  EY

However, if she comes to India on a visit and the visit has not been defined under the Indian tax law (but would not include visit for an employment), the 60-day period in the above basic conditions would be substituted for 182 days.

If any of the additional conditions mentioned below are not met, then the individual would qualify as a not ordinarily resident, otherwise would qualify as an ordinarily resident: resident in India in 9 of 10 financial years preceding the relevant financial year; or stay in the 7 years preceding the relevant financial year is 729 days in total or more.

Only if you qualify as an ordinarily resident, you would have to declare your foreign assets in your Indian tax return.

If disclosure is not made, the individual may be liable to action under the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015.

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