Tax Payment for Overseas Investors Without an Indian Bank Account
Thank you for reading this post, don't forget to subscribe!As an overseas investor who has sold shares in an Indian company, you are required to pay capital gains tax on the income from the transaction. If the buyer did not deduct tax at source (TDS), the responsibility to pay the tax falls on you. You can fulfill this obligation even without an Indian bank account.
Procedure for Tax Remittance from Abroad:
- Use the “e-Pay Tax” Section: Access the “e-Pay Tax” section on the Indian Income Tax Department’s official website.
- Complete the Mandate Form: Download and fill out the mandate form available on the portal. This form authorizes the transaction.
- Remit Funds to a Nostro Account: Submit the completed mandate form to an Indian bank. The bank will then facilitate the remittance of your tax payment from your overseas bank account to their designated Nostro account.
- Receive the Challan: Once the bank processes the payment, they will issue a Unique Transaction Reference (UTR) number. The corresponding tax challan will be available for you to view and download under the “Payment History” tab within the “e-Pay Tax” section.
- File Your Tax Return: After you have the challan, you can proceed with filing your Indian income tax return, making sure to include the challan details accurately.
Note on GIFT City FD Interest:
The provided information also mentions an important tax exemption for non-residents:
- Interest earned on deposits in an IFSC Banking Unit (IBU) in GIFT City is exempt from Indian income tax.
- If this is your only source of income in India, you are not required to file an Indian income tax return.
