Online Process to file ITR by NRI having Interest and Rental income in India

As the Income tax filing season has started the taxpayers are busy with the compliance process. Non-resident taxpayer earning income through rent from house property and interest from savings bank or fixed deposit are required to file ITR 2.

The process of filing ITR 2 is fully online at the same time it is offline, as you need to download government utility provided by the Income tax department. Fill it offline and then upload online

In this article we will enable you to understand how to file ITR of NRI having interest & rental income.

Procedure to File ITR of NRI:

In Income tax filing there are three steps:

1. Downloading the prefilled xml

2. Downloading the ITR utility

3. Filing the ITR utility

4. Final Submission

Below is the procedure to file Income Tax Return by NRI having income from interest and rental income:

1. Downloading the prefilled xml

Step 1: Go to https://www.incometaxindiaefiling.gov.in/home and login to the portal using Login credentials

Step 2: Now go to ‘My Account” tab and select “Download Prefilled XML” option.

It will redirect you to “Download Prefilled XML” page.

Step 3: Now, Select the following:

a. Assessment year for which return is to be filed

b. ITR form number as “ITR 2”

and click on “continue” button. Now, select the account for refund credit and click on “Download XML” your xml will get downloaded.

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2. Downloading the ITR utility

Step 1: Go to https://www.incometaxindiaefiling.gov.in/home and select “IT return preparation software” under “Download”

Step 2: Now, download ITR 2 Java utility

3. Filing the ITR utility

Step1: Extract the file downloaded in “Part 2: Downloading the ITR utility” and open file having name- “ITR-2_AY202021_PR1.3”.

The Income Tax Return utility will get open.

Step 2: Now, click on “open” button and open the xml file downloaded

Step 3: Filing the ITR form

The ITR form has the following tabs:

1. Part A General Information

a. In this tab the assessee is required to fill his basic details like communication details and PAN details.

b. Also, select, yes or no from the drop down, whether you are eligible for filing return under 7^th proviso of section 139(1).

c. Select “Non-resident” from the drop down under “Residential Status” and enter the following:

(i) Please specify the jurisdiction(s) of residence during the previous year along with Taxpayer Identification Number.

(ii) In case you are a Citizen of India or a Person of Indian Origin (POI), please specify – Total period of stay in India during the previous year (in days) and Total period of stay in India during the 4 preceding years (in days).

d. Select, whether this return is being filed by a representative assessee? If yes furnish the information of the representative assessee.

e. Whether you are Director in a company at any time during the previous year? If yes, furnish the information relating to the company.

f. Whether you have held unlisted shares at any time during the previous year? If yes, furnish the details of the unlisted shares.

2. Computation of Income tax:

A. Income from house property:

Where the assessee is earning interest income from house property than he has to enter the details of such income under Schedule HP and enter the following details:

a. Enter the address of the property

b. Select the Owner of the property from the drop down i.e. whether self, spouse, minor or others.

c. Now, select whether the property co-owned? If yes, than enter the details of co owner along with share of co-owner and self.

d. Select the type of house property i.e. whether the property is let out or self occupied or deemed let out property.

e. In case the property is let out enter the Name of the tenant and enter the amount of rent income received during the financial year in point (a) and Enter the amount of home loan interest paid during the financial year in point (h).

B. Interest income: Where the assessee is earning interest income from savings bank or deposit than he has to enter the details of such income under Schedule OS.

Enter the amount of interest received during the financial year under part b of Schedule OS..

C. Deduction details: The assessee has to provide the deduction details under chapter VIA in Schedule VIA

3. Tax details: It provides the details of TDS deducted by the deductor and advance tax paid during the financial year. The assessee has option to edit the details in case incorrect details are being displayed in Schedule “TDS”. The TDS details are prefilled in the ITR xml from the e filing website.

4. Tax paid and verification

This is done through Part B- TTI tab. This tab displays the amount of tax payable or refund and also the verification form where the assessee has to select the bank in which the assessee wants to credit the refund. And under “Verification” tab the assessee has to select the capacity from the drop down.

5. Schedule 80D: The assessee has to select “Schedule 80D”. In this tab the assessee has to provide mediclaim made during the year and provide the amount of premium paid during the year. The assessee as to enter details in either select option 1 or option 2 accordingly.