One of the most common questions I get from Non-Resident Indians (NRIs) is:
"ððš ð ð§ððð ððš ð©ðð² ððð± ð¢ð§ ðð§ðð¢ð ð¢ð ð ð¥ð¢ð¯ð ððð«ðšðð?"
â
ðð¡ð ð¬ð¡ðšð«ð ðð§ð¬ð°ðð«: It depends on your residential status and source of income.
ðððâð¬ ðð«ððð€ ð¢ð ððšð°ð§ ð
1. ð«ðððððððð ðððð ð¹ðððð
ðððððð ðºððððð â ð°ðâð ðªðððððð
Your tax liability is based on physical presence in India during the financial year.
ð ð°ð¶ ð¢ð³ðŠ ð€ð°ð¯ðŽðªð¥ðŠð³ðŠð¥ ð¢ð¯ ððð ðªð§:
⢠You stayed in India less than 182 days during the year, or
⢠You were in India for less than 60 days in the year and 365 days in the last 4 years
â ïž ððªðŽðµð¢ð¬ðŠ: Having a foreign passport or job abroad â NRI. Only days in India count.
ðŸððð ð°ððððð ðð ð»ðððððð ððð ðµð¹ð°ð?
Only income earned or received in India is taxable:
⢠Rent the property
⢠Capital gains on shares/property
⢠Interest on NRO/FDs
⢠Salary received or services rendered in India
â
Good News: Foreign income is not taxed in India (unless you become a resident again).
3. ðªððððð ð»ðð ðŽððððððð ðµð¹ð°ð ðŽððð
ð« Not filing ITR â even if below limit, you may lose TDS refunds or miss documentation
ð« Missing deductions â under Section 80C, 24(b), 80D
ð« Confusing NRE vs NRO accounts â interest on NRO is taxable, NRE is exempt
ð« Not disclosing foreign assets after return â mandatory if you become a Resident/RNOR
4. ð»ð«ðº & ð¹ððððð
ð: ðŸððð ððð ðŽððð ð²ððð
⢠TDS of 30%+ applies to most NRI incomes (rent, property sale, FD)
⢠Apply for lower TDS via Form 13
⢠File ITR to claim excess TDS refunds
5. ð«ð»ðšðš â ðšðððð
ð·ððððð ð»ðð ð»ðððð
India has Double Taxation Avoidance Agreements with 90+ countries.
ð¬ Example: If you paid capital gains tax in India, claim credit in your country of residence under DTAA.
6. ð·ðððððððð ððð ðºððððð
ðšðððð
⢠Late ITR Filing = â¹5,000
⢠Non-disclosure of foreign assets = â¹10 lakh (Black Money Act)
⢠Failure to deduct TDS on rent/sale = Penalty for buyer or tenant
ð ð
ð¢ð§ðð¥ ðð¡ðšð®ð ð¡ðð¬
NRI Taxation is complex. One error can lead to hefty notices or penalties.
ð§ ð·ððð ððððð. ðððð ðð ðððð. ð»ððð ðððððð ðððð.
ð¬ ð®ðð ððððððððð ðð ðððð ðµð¹ð° ðððððð, ð»ð«ðº, ðð ð°ð»ð¹? ð³ððâð ððððððð.
ððº ðð ððªð¥ð©ð¶ ðð¶ðšðšð¢ð | ðð©ð¢ð³ðµðŠð³ðŠð¥ ðð€ð€ð°ð¶ð¯ðµð¢ð¯ðµ
â Cross-Border Tax Expert
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