An IT glitch in the Indian tax e-filing system that prevents non-resident Indians (NRIs) abroad and expatriates living in India from filing their tax returns is going to make them miss the July 31st deadline this year unless it is quickly fixed. The said glitch doesn’t let the NRI community proceed without submitting an Aadhaar card identification number. An official Indian Government missive earlier had ruled out NRIs and specific expatriates from an aadhaar card eligibility if they had not resided in India for more than 182 days at a stretch within a 12-month period.
In several instances of e-filing, NRIs are unable to upload their returns once they type in their country of residence as a foreign place other than India. As for expatriates, they are facing a dead-end as they have been tagged as Indian citizens within the income tax database. Several others who are not under the international tax ward are unable to file as well.
This issue is exacerbated by the latest confusion wherein the Central Board of Direct Taxes, Government of India had sought the declaration of details of foreign bank accounts irrespective of how long the non-resident Indian was out of the country, and not applicable to expatriates, this seems to be appearing in the tax e-filing system which the tax payer is unable to circumvent in order to submit his returns.
Unless the income tax department irons out these issues in their e-filing system with immediate effect, or alternatively considers extending the date beyond the July 31st deadline, a lot of NRI’s and expatriates would be unable to file their taxes in a timely manner.
For more information on NRI taxation and exemptions read NRI Taxes & Rates in Path2usa.com.