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Friday, August 31, 2018

Non-Residents can get Tax Refunds to their Foreign Bank Accounts


The ITR forms now allow non-residents to give details of bank account outside India, so they may receive the refunds in it directly


The last date for filing income tax returns (ITRs) for the assessment year (AY) 2017-18 is 31 July 2017. All those who want to claim tax refunds, have to mandatorily e-file their income tax returns irrespective of the amount of their taxable income. And to claim refunds, one has to provide details of a bank account in which the refund is to be credited. However, for this, till now they could only provide details of a bank account in India. If they did not have an account in India, their tax refunds would become difficult. This has been rectified now. In the ITR forms for AY 2017-18, NRIs can furnish details of foreign bank accounts to claim refunds. Read more about it here.





Need for foreign bank details
Almost all types of incomes attract tax deduction at source (TDS). TDS is collected at different rates, which are stipulated in the Income-tax Act, 1961. In cases where more TDS has been collected than what was required, you can claim refund of the excess amount while filing ITRs.


The ITR forms for AY 2017-18 were notified on 30 March, 2017. However, according to press release dated 24 July 2017 by finance ministry: "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." The ITR forms have now been modified to help non-resident assessees.


The forms now allow nonresidents to give details of bank accounts outside India, so they may receive the refunds in it directly.


Non-resident Indians who do not want to claim any tax refund as well as those who want to claim refund and also have a bank account in India, are not required to give details of their foreign bank accounts in the ITR.


The details that have to be given include details such as: international bank account number (IBAN) or SWIFT code of the bank, name of the bank, country of location and account number.


Once an ITR is filed, assessees can verify the status of their refund by logging into their e-filing account.


They can also check the status of the tax refund here, which is maintained by National Securities Depository Limited.






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