Is it compulsory for an NRI to file tax returns?
An NRI is required to furnish his return of income if his total taxable income exceeds the maximum amount which is not taxable. As per the income-tax laws, a NRI is not required to furnish return of income, if
- Total income consists only of investment income from foreign exchange assets or long-term capital gains or both.
- Tax has been deducted at source on such income.
Thus, from the above, it can be derived that if NRI has income from Short Term Capital Gains on equity shares, he would be required to file tax returns in India.