Introduction

Who Qualifies as an NRI?

• They have spent fewer than 182 days in India in a financial year.
• They have not been in India for 60 days or more in a financial year and 365 days or more in the preceding four financial years.

Taxable Income for NRIs

1. Salary Income: If an NRI receives a salary for services rendered in India, it is taxable regardless of where the payment is received.
2. Rental Income: Income earned from renting out property in India is taxable. NRIs can claim a 30% standard deduction and deductions for municipal taxes paid.
3. Capital Gains: Any capital gains from the sale of property, shares, or mutual funds in India are taxable. Long-term capital gains (LTCG) and short-term capital gains (STCG) tax rates vary based on the asset type and holding period.
4. Interest Income: Interest earned on savings and fixed deposits in Indian banks is taxable. However, interest from Non-Resident External (NRE) accounts is exempt from tax, whereas interest from Non-Resident Ordinary (NRO) accounts is taxable.
5. Other Incomes: Business income, dividends, and professional fees earned in India are also subject to tax.

Tax Rates for NRIs

Up to ₹ 3,00,000 Nil ₹ 3,00,001 – ₹ 7,00,000 5%       ₹ 7,00,001 – ₹ 10,00,000 10%         ₹ 10,00,001 – ₹ 12,00,000 15%         ₹ 12,00,001 – ₹ 15,00,000 20%         Above Rs 15,00,000                                                        30% Additionally, surcharge and cess may apply based on income levels. Exemptions and Deductions NRIs can avail of various tax benefits, such as: Section 80C Deductions: Investments in life insurance, Employee Provident Fund (EPF), and principal repayment of home loans are deductible. Section 80D: Health insurance premiums are deductible. DTAA (Double Taxation Avoidance Agreement): NRIs who pay tax on the same income in another country can claim relief under DTAA.   Our Services Accounting Outsourcing Audit Services Corporate Finance Corporate Services Corporate Governance Income Tax Benefits of Outsourcing Payroll Services Services for Non-Residents TAX Deducted at Source (TDS) Litigation Services GST Services Contact with us Let’s Work Together? With Taxacharya's professional audit services, businesses can enhance financial credibility, improve decision-making, and mitigate financial risks effectively. Our expert auditors ensure compliance with regulations, detect discrepancies, and provide valuable financial insights. By leveraging advanced auditing techniques, we help businesses streamline operations, optimize tax planning, and maintain transparency. Our thorough financial analysis identifies potential risks, ensuring robust financial health. Accounts Payable and Receivable Budgeting and Forecasting Have Any Question? +919818211597 Send Email info@taxswami.com Contact Us Accounting OutsourcingAudit ServicesCorporate FinanceCorporate ServicesCorporate GovernanceIncome TaxBenefits of OutsourcingPayrollServices for Non-ResidentsTAX DEDUCTED AT SOURCE (TDS)Litigation ServicesGST Services Submit Now Open chat Hello Can we help you?