HELP: AY 17-18 refund for NRIs getting denied due to foreign address

Raj_India · Post by **Raj_India** » Fri May 25, 2018 9:21 am

Hello,
Has anyone heard that for AY 17-18, the refunds for NRIs are getting rejected due to their foreign address? I have heard that it will be a rule for AY 18-19 as well with some INR limits. A friend asked me and I have not found any mention of this rule in any documents from governement but he did call three times to CPC and got above info. So cross checking if anyone has heard about this? Income tax department did tell my friend about refund reissue. So, that's not the point. Point is he was told to give indian address. For an NRI, it seems odd. I am hoping any CAs out there would know about it and share details please. Thanks in advance.

cf_r2i · Post by **cf_r2i** » Thu May 31, 2018 5:57 am

An NRI can have Indian address and a foreign address. Why not use Indian address? For refund you can use NRO account, be sure to update your PAN. Don't see a problem getting refund, are you saying from this year the process changed and questioning your address on file as per your filling?
NRIs need to use ITR-2 form for an individual tax filler.

Desi · Post by **Desi** » Thu May 31, 2018 6:13 am

https://timesofindia.indiatimes.com/business/india-business/nris-overseas-bank-info-needed-only-for-tax-refund/articleshow/59747976.cms

Raj_India · Post by **Raj_India** » Fri Jun 22, 2018 5:36 am

@cf_r2i : It's not for me but someone I know. He does not have indian address and he is USC. So, he had given his US address. Turned out, he had a refund coming and it was rejected because the return did not have indian address. The ITR was filed as NRI - so he was confused and he asked me. I could not find anything either - so I thought I will ask our friendly and knowledgeable crowd here.
@Desi : He had given the indian bank account number - NRO - so that was not the issue. It was address.

Anyhoo - he gave his brother's address as part of refund reissue and that worked. However, he had to change his address in income tax portal. When he said that to me - I was a bit uneasy as his other details (like bank etc) all show his address as foreign one. I am sure he can change it back on the website - but it is weird.

@cf_r2i, @Desi : Thank you for taking time to reply. Appreciate it very much and I am also conveying thanks from my friend.

Kay S · Post by **Kay S** » Thu Jul 05, 2018 11:31 pm

@Raj_India: I'm having the same issue with refund rejected due to US address. I filed as NRI. My Indian bank acct , PAN etc has foreign address and I don't really have an Indian address. I can ask some relatives to use their address when I get to file the reissue.

Right now I am unable to request a reissue because it says "No refund failures to raise refund reissue service request". This is because the refund banker (SBI) has not yet sent the required info the The Indian Income tax folks. I'm waiting on that.

Did your friend have this same issue during the process?

Also, did your friend get his refund deposited directly to his NRO account after he switched his brother's Indian address or was the refund paper cheque mailed physically to his brother's address?

Raj_India · Post by **Raj_India** » Mon Jul 09, 2018 6:05 am

@Kay_S: Good news is my friend got the refund in his NRO account electronically once he gave the indian address. So, the indian address is just for paper work to issue the refund it seems. I advised my friend to change the portal address back to his US address once the refund was received. So, just give one valid address to get the refund reissue request. As I said, this is weird - especially for NRIs.

wd40 · Post by **wd40** » Mon Jul 09, 2018 8:48 am

There used to be a limit of Rs 50,000 for electronic credit, above that they issue a cheque. Not sure if this has changed.

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Kay S · Post by **Kay S** » Thu Jul 12, 2018 12:46 am

@Raj_India: Thanks for the response. I called CPC and received the email notification on July 9 (called the G3 notice) about the refund failure. It's still not reflected on the e-filing website. So I'm still unable to request the refund reissue. I'm assuming it will take a couple of weeks for them to update the refund failure.
I'm glad your friend received the refund to his NRO account. It's lot easier that way. My refund amount is more than Rs.50,000, so I'm hoping that they will still deposit directly to my NRO

@wd40: My refund amount is more than Rs.50,000/- I'm not sure if the limit still applies. I will update when I find out more. I will also ask CPC helpline about this. Thank you!

Kay S · Post by **Kay S** » Thu Aug 16, 2018 2:44 am

Thanks to all who responded to me.

@Raj_India and @wd40:

I received my tax refund after changing my foreign address to an Indian address (home of a relative).

The "refund reissue" was eVerified on the India Income Tax site.

After about 20 days my refund was issued directly to my NRO acct. The refund amount was more than Rs. 50,000/-, so the limit did not apply in this case. I think this is due to the fact that I logged into the Tax website through "Net Banking" and eVerified.

Thanks again to both.

wd40 · Post by **wd40** » Fri Aug 17, 2018 7:00 am

Kay S;679400Thanks to all who responded to me.

@Raj_India and @wd40:

I received my tax refund after changing my foreign address to an Indian address (home of a relative).

The "refund reissue" was eVerified on the India Income Tax site.

After about 20 days my refund was issued directly to my NRO acct. The refund amount was more than Rs. 50,000/-, so the limit did not apply in this case. I think this is due to the fact that I logged into the Tax website through "Net Banking" and eVerified.

Thanks again to both.

Thanks for coming back, I will also expect a refund of > 50k. So I will be watching out.

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