I currently reside in the United States and I have been working here for about a year. However, my accounts in India are non NRE accounts and I have transferred about $20k to India within the last one year. Now, I am aware about the fact that India and US have a tax treaty( So I do not have to pay taxes in India, if I pay them here in the United States). My question here is, can I file a NULL return even though my accounts in India are non NRE accounts, or what steps do I need to take, in order to keep my file up to date in India?
As an NRI, you are still liable to pay taxes on certain incomes earned in India, like the interest on Savings accounts / rent received from property / capital gains on shares / etc.
It is advisable to file a NIL return in India. The forms are same as one you fill for normal returns. You just have to declare the right source of income and show zero taxes[if within the exempt bracket]. There are quite a few online services including Government Website
As Dilip has mentioned in comments, US taxes on your global income, hence it would be advisable to declare the interest income in India to the IRS. The Double tax avoidance treaty would help you avoid being taxed twice, however you would still pay the max rate of tax.
1: Log on to the Income Tax Department's portal (www.incometaxindiaefiling.gov.in) meant for filing taxes online. Register yourself using your Permanent Account Number (PAN), which will act as your user ID.
2: Under the 'Download' menu, go to e-filing AY 2012-13 < Individual/HUF and select the appropriate Income Tax Return (ITR) form. Download ITR-1's (Sahaj) return preparation software if you are a salaried individual, pensioner, own one house property and/or earn interest income.