NRI ITR Filing: As per the Indian tax laws, if the non-taxable income (ie ₹2.5 lakh under the old tax system; ₹3 lakh under the new tax system) in a financial year is higher, he has to file an ITR. So, if you have no income in India, you are not required to file returns.
Although there is no need to file ITR as such, some high value transactions are captured and reported by the reporting entity, even if these transactions have no relation to income.
Some examples: Investing more than ₹10 lakh in Non-Residential External (NRE), Non-Resident Ordinary (NRO) or FCNR (Foreign Non-Resident Current Account) Fixed Deposits (FDs) or subscribing to shares in an Indian company or mutual funds above that amount. ..
Purchase of immovable property in India above ₹30 lakh. In such cases, the tax department may seek to confirm the transactions and file a reply, without which ultimately a reassessment notice may be issued.
NRE FD interest is tax exempt as long as one qualifies as resident outside India (i.e. non-resident) under the Foreign Exchange Management Act (FEMA).
If a person is on a temporary visit and does not intend to return for welfare, that person will continue to be a resident outside India under FEMA.
In your case, your visit to India covering this period of stay will be treated as a temporary visit. Also you can continue to claim deductions on NRE FD interest earned.
