55. Filing Income tax in India for

Rental Income

I purchased a flat in August 2008. I am an OCI holder with US citizenship. I have a rent of 20000 Rupees Total by Dec 2008. I have reported this income on my US tax returns My accountant in India, is charging me 5000Rs and insists that I have to file tax return in India inspire of the low income, because I purchased the flat. All the money for the flat is paid from overseas and I have submitted and got Reserve Bank of India clearance. Since I am well below the threshold of 180000 Rs, Do I have to file Indian Income Taxes this year ? Thanks for your help Meera Nayyar Answer: Ask your accountant about provision u/s 115 G of the I T Act which is shown below) 115G. It shall not be necessary for a non-resident Indian to furnish under sub-section (1) of section 139 a return of his income if (a) his total income in respect of which he is assessable under this Act during the previous year consisted only of investment income or income by way of long-term capital gains or both; and (b) the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income. Many people even if they do not have any taxable income file taxes in India to get a refund of the TDS deducted. I would imagine many people don't file taxes and are not interested in getting back any tax deducted from the rent. As far as I am informed it is the responsibility of the tenant to deduct TDS from rent before paying rent to the landlord. Clarify matters with your accountant in India or seek the opinion of another qualified accountant.