Do I have to file an Income Tax Return (ITR) in India after returning from UK for work?

I have lived in the UK for the past 15 years. I came back to India on 15 October 2024 to take up employment. Do I have to file my Income Tax Return (ITR) in India next year?

For a person who is a resident of India under the tax laws, his global income is taxed in India subject to double tax avoidance benefits available under the treaty entered into between India and the other country. Please note that all the incomes that accrue and arise in India are taxable to everyone, including non-residents. So, your salary in India is taxable even if you are a non-resident for the year ending 31st March 2025. Since your stay in India for the financial year 24-25 will be for less than 182 days, prima facie, you would be a non-resident for income tax, assuming you were not in India before 15th October 2015 during the current financial year.

Tax Filing Obligation in India After Returning from the UK

Just because an income is taxable in India does not mean you must mandatorily file your ITR in India. An Individual has to file his ITR in India if he satisfies one of many conditions. So, you must file an ITR in India if your gross income before various deductions exceeds the basic exemption limit. The basic exemption limit is generally Rs. 2.50 lakh under the old tax regime, whereas it is ₹3 lakh rupees under the new tax regime.

In addition to additional criteria based on expenses incurred on electricity, foreign travel, and deposits in your bank accounts, you have to file an ITR if you are a resident of India and either own a foreign asset, have signing authority outside India, or have a beneficial interest outside India. You have to file your ITR in India whether you have any taxable income in India or not.

Even if you are not covered under any of the criteria for mandatory ITR filing, I would advise you to file your ITR voluntarily, as it may be needed for various reasons in the future.

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Balwant Jain is a tax and investment expert and can be reached on [email protected] and @jainbalwant his X handle.

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