For taxman, PIOs and OCIs are not different

Is there any difference in the tax treatment between a PIO and an OCI card holder? I have a PIO card and am wondering if there is any benefit for opting for the OCI card also? 
— Sam Mehta
The OCI (overseas citizens of India) is not a status under the law, it is just a facility provided by the Indian government. As per law, one can either be an NRI (a person who is abroad but maintains his Indian citizenship and passport) or a PIO (a person of Indian origin who has taken foreign citizenship and maintains a non-Indian passport). PIOs can opt to apply for the PIO and/or the OCI card. Tax-wise there is no difference since all OCIs are PIOs under law.

The only difference between the two is that with a PIO card you still have to report to the FRO (foreigners’ registration office) authority if your stay in India exceeds 180 days. There is no such requirement in the case of an OCI card holder.

I have come to Australia on March 1, 2010 on visitor’s visa to stay with my children and will return to India in last week of 2011. My main income is my monthly pension. I have also received some arrears which I may have to return at any time due to some technical reasons but the bank has deducted tax at source. I am unable to file return at present but can do only after returning to India as all records are at my home in India where nobody stays at present. Please inform (a) will there be any implication in filing the return after reaching India in March 2011 (b) how to get the refund of the TDS  if I return the arrears?
— Lt Col B S Sandhu (Retd)
The financial year in India ranges from April to March, and the tax return for which has to be filed by July. For example, for FY 2009-10, one has to file the tax return by July 2010. However, you may file a belated return for the same year anytime up to March 31, 2012 i.e. two years from the end of the financial year. As far as getting the refund for the withholding tax (TDS) is concerned, the same has to be done through the tax return itself i.e. claim refund through the tax return.

The writer is director, Wonderland Consultants, a tax and financial planning firm. He can be reached at sandeep.shanbhag@gmail.com