An NRI (Non-Resident Indian) is an Indian citizen who lives outside of India for a significant period of time. NRIs are subject to different tax laws in India than resident Indians. In this article, we will discuss the NRI tax in India, including the tax implications for NRIs, the tax benefits available to them, and the compliance requirements they must meet.
Tax Implications for NRIs:
- Tax on Income: NRIs are subject to tax on their income in India. This includes income from salaries, house property, capital gains, and business or profession. NRIs are also subject to tax on their global income if it is derived from an Indian source.
- Tax on Investment: NRIs are subject to tax on their investments in India. This includes investments in shares, mutual funds, and real estate.
- Tax on Property: NRIs are subject to tax on their property in India. This includes property that is inherited, gifted, or acquired through a sale.
Tax Benefits Available to NRIs:
- Tax Exemptions: NRIs are eligible for certain tax exemptions. For example, they are not required to pay tax on the income earned from a foreign currency account in India. They are also eligible for tax exemptions on income from house property if it is not let out for a specified period of time.
- Tax Credits: NRIs are eligible for tax credits. For example, they can claim a credit for taxes paid on income earned in another country.
- Double Taxation Avoidance Agreement: India has entered into Double Taxation Avoidance Agreements (DTAA) with several countries to avoid double taxation of income earned by NRIs. Under these agreements, NRI legal tax in india.
Conclusion
Thus, you might have now got to know about the NRI legal tax policy in India that will help you deal with the legal aspects. ensure you are following the legal process appropriately to get the word done.
