NRI Tax Return Filing in India- Which Incomes are Taxable?
NRI Tax Return
Determination of Taxable Income for filing NRI Tax Return in India
The
Financial Year 2021-22 is coming to an end and every individual assessee has to
prepare and file their Income
Tax return in India on or before the specified due date i.e. 31st July 2022 unless and until again the pandemic broke out and
results in delay in all compliances including Income Tax Return Filing in India.
In
this writeup, we would be discussing about types of income of NRI which are
taxable in India. This would be helpful in filing NRI Tax return in India.
In
case of NRIs, following income which is earned in India or received in India or
accrue or arise in India would be taxable in India namely,
1)
Salary Income Earned in India:
·
In case NRI has rendered any service
in India, it would be taxable in India as it will be considered as income
arises in India. Therefore, even if salary is received outside India for
services rendered in India, it would be taxable in India.
·
Similarly, Salary received in India for
services provided in India is taxable in India in case of NRIs.
·
In case NRI is an employee of the
Govt. of India or a citizen of India, then it would be taxable in India even
though the service is rendered outside India. However, salary of foreign
diplomats and ambassadors rendering services in India are exempt
2)
Income from House property:
In case NRI has any property
situated in India through which He/ She is earning rental income, same would be
taxable in India. However, like Residents, NRIs would also be allowed
statutory deduction of 30% from such rental income and balance would be
taxable. Further, any residents paying rental income to NRI outside India would
have to deduct TDS @30%. Also, at the time of such remittance of rental income
outside India, Form 15CA and 15CB would be required by the residents making payments to
NRIs.
3)
Income from Business or Profession
In case, NRI is running any business
or profession in India, any income from such business or profession which is
controlled or set up in India, would be taxable in India.
4)
Income from Capital Gain:
In case, NRI is engaged in share
trading activities or sold any mutual funds or crypto currency, any
Capital
gain on transfer of such shares or mutual funds or crypto currency would be
taxable in India.
Similarly, in case NRI sold any
property, any gain from sale of such property would also be taxable in India.
In such case, resident buyer of such property would have to deduct TDS @20%.
Also, like residents, NRI would also be eligible to avail exemption u/s 54 and
54 EC
5)
Income from Other Source:
Like Residents, in case NRI has
earned any income form FDR or any interest on saving bank account, same shall
be taxable in India. However, deduction upto Rs.10,000 would be available on
such interest income.
Thus, from above, we may infer that
like Residents, NRIs are also taxable for income earned under 5 heads of income
and aforesaid points shall be kept in mind at the time of NRI Tax Return Filing in India.
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