Hi Guys,
I tried to do a quick search on this particular topic, but could not find uptodate info (may be i did not find the right thread).

I am canadian citizen having OCI and recently(one year) converted my indian accounts to NRE & NRO with Axis bank.

After going thru the yearly statement, realized the bank withhold tax deductions amount (around 12,000 INR).

I never filed any taxes in india despite having a PAN card but no income all these years in india.
Now should i file the taxes to claim the refund or just ignore the hassle of appointing the account there?

Note: I am newbie in indian taxes and dont know the latest updates especially after demonetization.

Thanks in advance for your input/suggestions.

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MK

One more question? should i surrender my PAN card being Non-Citizen of India? If i have PAN is it mandatory to file taxes every year?

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MK

Do not surrender your PAN card; However, let the banks know of your canadian citizenship and address. Your tax pbligations drop to 15%, instead of 48%, of earnings. You are presumed to report your earnings there and tax paid, to your canadian income. Not sure how you would do that, but right away, you get some discount on what the banks subtract.

If 12,000 Rs is important to you file the tax. Its a big hassle to file taxes in India. Usually you need a CA for that.

They have E Filing online but its quite complicated and paper work and red tape and bureaucracy. Plus due to corruption and bribes in the IT dept getting a refund is not guaranteed and takes a long time for it to come.

Keep all your money in NRE and not NRO. NRE there is NO TDS I.e Tax Deducted at source, while NRO there is 30 % TDS on any interest you earn.

Whether you surrender your PAN or not, they will keep on deducting TDS on your NRO account.
Its up to you whether you want it back or not from IT dept.

Bank has nothing to do with it. RBI and IT force them to cut the TDS and remit to them so they can eat that money and then they give common folks the run around when they try to claim that TDS back.

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As long as you don't owe taxes its not mandatory to file taxes in India. Having a PAN card or not has nothing to do with it.

In fact they are happy you are not filing taxes as they owe you a refund of 12,000 Rs and they don't have to give it to you if you don't file.

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America Ka Vyapaari Canada Ka Bhikari

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They will keep on making a few laws that will make a few bucks from the NRI's. The few who have just a small sum will say "Ignore" the amount and it is not worth trying to recover it back. That is the kind of money that the Indian Government is trying to get from you and me.

Don`t forget that you are an NRI and you do not work there and pay any income tax there. So, they are NOT asking you for any other income from other sources in the return that you want to file there and SO claim back the amount that they took out of the NRO INTEREST account OR the rental income that you might have.

SO, HIT THEM BACK. (Also). Claim the amount that they took out of your NRO account as TDS at source. When all of us do that they will realize that it is costing them more now having started this vicious cycle.

If you know or have an accountant, he will also get a small chunk out of it and the balance is yours to keep.

Here is a little bit of help....: FEES CHARGED by a Chartered Accountant there. (Normal fees) The amount varies from firm to firm and services offered. This firm is in Bombay and `We are from Mumbai and in our firm we charge a minimum of Rs.1,500 for an Income tax return. The amount goes up depending on the work involved.`

What is the difference between people who charge less than Rs. 500 or people who charge more than Rs. 1,500, you would ask. People charging less than Rs. 500 would only file your return of income and there the story ends. However, in our firm, we provide minor tax planning tips if something is missed and also look after the regular notices that may be received from Income tax department.

For you it may be just the cost of a good meal here. For them it will be a daily wage. So, let them get it from you. It will help them too. In return you will get a ten fold response. SO, go for it. Also see if they did it to you in the previous years also. If they did, then he will be able to go back a few years and get that amount also.

Find out from him what are all of the things that he can do for you to minimize your exposure to taxes. They are good you know. They will plan a few items for the future too.

https://www.quora.com/How-much-should-a-chartered-accountant-charge-me-in-INR-to-file-my-IT-returns-in-Bangalore-India


FH.
He will also tell you more about the PAN card too. It is just like our SIN Number and you don`t have to give it to every body or any body. Just hang on to it. It is very personal.


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Quote:

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Originally posted by mkannuri

Hi Guys,
I tried to do a quick search on this particular topic, but could not find uptodate info (may be i did not find the right thread).

I am canadian citizen having OCI and recently(one year) converted my indian accounts to NRE & NRO with Axis bank.

After going thru the yearly statement, realized the bank withhold tax deductions amount (around 12,000 INR).

I never filed any taxes in india despite having a PAN card but no income all these years in india.
Now should i file the taxes to claim the refund or just ignore the hassle of appointing the account there?

Note: I am newbie in indian taxes and dont know the latest updates especially after demonetization.

Thanks in advance for your input/suggestions.

---

A very close family member sold his flat in India in
2004 . He deposited the proceeds of the sale in NRO account before eventually repatriating the money to Canada.

The bank cut Rs. 40,000 in TDS on the interest he earned on that money while it was in the NRO.

He filed the return in India to get the TDS back.
He is yet to get the refund back. He reminds them each year and fights for it, but they don't care.

That's how corrupt and careless and unethical and illegal the IT dept in India is.

Meanwhile in Canada CRA deposits your refund in 8 days after NETFILE

This guy is fighting for 13 yrs ! With interest and exchange rate that money is probably 2 Lakh by now

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