NRI Income Tax Filing
- Any salary received in India
- Any salary received for services rendered in India
- Rental income (if any) received from a property situated in India
- Capital gain (if any) arising on account of transfer of property or asset in India
- Any income from deposits in India, such as interest on fixed deposits
FREE CONSULTATION
NRI definition as per Income Tax Act, a Non-resident Indian (NRI) is someone who isn’t physically present in India enough to be considered a resident for tax purposes. This is determined by an individual stay in India during a financial year (182 days or more makes him a resident) or over the past four years (60 days or more in a year and 365 days or more total). There’s an exception for Indian citizens who/PIOs abroad who are only residents if they stay in India for 182 days or more in a year.
What is Income Earned or Accrued in India?
- Any salary received in India,
- Any salary received for services rendered in India,
- Rental income (if any) received from a property situated in India,
- Capital gain (if any) arising on account of transfer of property or asset in India
- Any income from deposits in India, such as interest on fixed deposits
- Any interest received on the savings bank account, etc.
Rental payments to an NRI
- A tenant who pays rent to an NRI owner must remember to deduct TDS at 30% while paying rent.
- The income can be received to an account in India or the NRI’s account in the country they are currently residing in.
Rental payments to an NRI
Interest income from fixed deposits and savings accounts held in Indian bank accounts is taxable in India. Interest on NRE and FCNR accounts is tax-free. Interest on NRO accounts is fully taxable.
Frequently Asked Question
1. Do NRI has to file an income tax return in India on income earned in India ?
NRIs have to pay tax on income that accrues or arises in India. NRIs also need to pay tax on income that is deemed to accrue or arise in India. Money received or deemed to be received in India is taxable. It’s essential for NRIs to comply with tax regulations in India, and seeking assistance from tax experts can certainly simplify the process.