Let’s check Tax Implications on Different Sources of Income for NRIs in India – also check NRI Tax in India.
Some NRIs do earn income in India as well.
If this income exceeds the basic exemption limit, NRIs have to file income tax returns. Even if the tax is paid or deducted, tax returns should be filed.
You can also get the RNOR Guide from the end of this post – which can help NRI reduce tax.
Read – NRI Mutual Fund Taxation In India
NRI Tax in India on Indian Income
Tax Slab 2021
| wdt_ID | Income Slabs | Tax Rate |
|---|---|---|
| 1 | ₹0 – ₹ 2,50,000 | No tax |
| 2 | ₹2,50,000 - ₹5,00,000 | 5.00% |
| 3 | ₹5,00,000 - ₹7,50,000 | 10% (20% earlier) |
| 4 | ₹7,50,000 - ₹10,00,000 | 15% (20% earlier) |
| 5 | ₹10,00,000 - ₹12,50,000 | 20% (30% earlier) |
| 6 | ₹12,50,0000 – ₹15,00,000 | 25% (30% earlier) |
| 7 | > ₹15,00,000 | 30% (same as before) |
| Income Slabs | Tax Rate |
| Taxable income | Tax Rate |
|---|---|
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs. 5,00,000 | 5 % |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Check – Portfolio Investment Scheme for NRI
Let us look at different income avenues for NRIs and the tax for NRI in India regarding the same –
Income from Salary
You might have become an NRI in the middle of a financial year. In such a situation, you might have earned a salary in India for part of the financial year. You have to pay income tax as per the NRI tax in India that are applicable to you for the total income earned in India.
Read – How Can NRIs Save Tax? NRI Tax Saving options
Income from Interest in Resident Accounts
You might have earned interest on the amount in savings accounts and fixed deposits before you became an NRI. Under Section 80TTA, a deduction up to Rs. 10,000 is allowed on the interest income from bank savings accounts.
The interest earned in Fixed deposits is added to the total income and taxed as per the tax Rates in India for NRI applicable.
*It is important to close all bank accounts that are residential when you become an NRI.
Income from Interest earned in NRO, NRE, and FCNR accounts.
Interest on NRE and FCNR accounts is tax-free.
Interest on the NRO account is taxable. It will be added to the total income and taxed as per the NRI income tax slabs of India applicable.
Check – Investment Options of NRIs
Income from rent
NRI owns a property and gives it on rent to a tenant.
The tenant deducts TDS at 30% of the rental income before paying the rent to the NRI.
The rent received is added to the total income which is liable to tax as per the applicable slab India income tax slabs.
The following deductions should be considered –
- Municipal taxes paid,
- standard deduction of 30% on the taxable value
- deduction for interest on loan taken for buying, constructing, or repair of home
- Repayment of the principal amount of home loan up to Rs. 1,50,000
If you have two properties, one will be considered as deemed let-out property and you will have to pay taxes for NRI in India.
The rent will have to be deposited in NRO account of NRI landlord. This money cannot be credited in NRE account as long as a tenant is also an NRI. wiseNRI
Must Read –NRI’s Investment Planning Mistakes
Income from Real Estate capital gains
An NRI who sells a house property and earns capital gains is liable to pay tax it’s the same as a resident Indian.
BUT for NRIs Long-term capital gains are subject to a TDS of 20%. Short-term capital gains are subject to a TDS of 30%. (U/S 195) The gains are considered short-term if the house is sold within two years of purchase.
You can get an exemption if
- You invest in a house property as per Section 54 within one year before the date of transfer or 2 years after the date of transfer or complete construction of a house within 3 years after the date of transfer of the capital asset
OR
- You invest in capital gain bonds as per Section 54EC within 6 months of the date of transfer.
Check – FCNR forward contract
Income from capital gains in other assets
Income from capital gains earned from other assets like stocks, mutual funds will be taxed. Long-term – 10% tax, without indexation, is applicable for capital gains from all direct equity and equity mutual funds if the gains are more than Rs. 1,00,000.
Short-term capital gains are taxed at 15%
Long Term Capital Gains on mutual funds other than equity funds are taxed at 20% with indexation for listed funds and 10% without indexation for non-listed funds.
Short Term Capital Gains on non-equity mutual funds are taxed at 30%.
Receipt of Gifts
Gifts received from relatives as defined in the Income Tax Regulations are exempt from tax.
Gifts received from non-relatives up to the value of Rs. 50,000 are exempt from tax. Beyond that, the gift value is added to the total income and taxed as per the applicable tax for NRI in India. (Check tax & other issues – Gift by NRI to Resident Indian or Vice Versa)
If you are an NRI, calculate the income received in India, and if it is above the exemption limit, do file your tax returns within the due date.
Feel free to ask queries regarding NRI taxes in India or if you have any practical experience regarding taxation – must share in the comment section.
TDS deduction on property, as a buyer how much % TDS should I deduct for the NRI(Dubai) seller. And the % is from total sale value or from the capital gain only.
Hello Aravind,
As a buyer in India purchasing property from an NRI seller (from Dubai), you’re typically required to deduct 20% TDS on the total sale value. However, the percentage might vary based on capital gains and exemptions as per Indian tax laws.
Timeline for filing taxes for NRI
Hey Samundar,
For NRIs, the tax filing deadline in India is typically July 31st of the assessment year for the previous financial year. However, if you have taxable income in India but your income exceeds the exemption limit, you’re required to file taxes. Ensure to check for any updates or changes in the deadline as per Indian tax laws and consider filing within the specified timeframe to avoid penalties or late fees.
I have a question in regards to the taxes that I have to pay the govt of India for the income that I generated as an NRI
Hey Vikram,
As an NRI, you’re subject to taxation in India for income earned or received in the country. Taxation varies based on the type of income—such as salary, property, capital gains, etc.
I am retired NRI and wish to fike my ITR.
Hey Jennifer,
As a retired NRI, if you have income or financial transactions in India, you are required to file your Income Tax Return (ITR) in India. You should file your ITR using the appropriate ITR form based on your income sources and residential status. You can e-file your ITR on the Income Tax Department’s official website.
I am Indian citizen working in uk as Docter since last 35 years. I have investment in india in my name out of my inheritance wealth. Do I need to reflect in my uk tax return.?
Hi Jignesg,
If you are a UK tax resident, you will be required to pay tax on any income and gains made in the UK, as well as abroad. For those who are not considered to be UK residents, all UK income and gains will be subject to UK taxation, but any foreign earnings will be exempt. Your residency status is not a fixed status.
Do you file income tax returns?
Hi Rohit,
Yes,
Kindly drop your contact , we will reach you out.
This regarding income tax filing for financial year 2021-2022.I am partner of a firm and I have salary income as well.I used to file ITR3. And partnership firm ITR is filed by CA.This year 2021-2022 ITR filing, CA told partnership firm ITR will be filed only before end of Dec2022, as for partnership firm we have time till date. My query is can I file ITR3 without partnership firm earnings details (salary, interest & profit etc) and submit? Once the ITR filed by partnership firm by CA I will revise my ITR including partnership firm earning and resubmit? If I do this when I revise my ITR before DEC2022, will I need to pay tax for the partnership firm earning again based on my tax slab? is salary, interest and profit are taxable?
Hi Raghesh,
Kindly consult with CA regarding your query.
if stock profir more than 1laks, do i need to pay tax, I am a seafarer
Hi Atul,
Yes, if the long term profit is more than 1 Lakh, then you have to pay taxes @10%
Hello. I just now sold equity funds worth 45,00,000 from NRE account. I am over 60 years. Bank is withholding 9,00,000 for TDS. How can I claim entire amount?
Hi Jayang Vora,
Kindly consult with your CA.
I arrived in India on 25 April 2021. I left India in January 2000. I will qualify to be assessed as RNOR for financial year 21-22.I have Fixed deposit in NRE account. On arrival I informed my bank that I have returned permanently. My bank re-designated my Fixed deposit as resident FD(everything else remaining as is) and deducted TDS starting July 2021. Is the interest income earned on these FD s during 21-22 taxable?My understanding is that since I am RNOR for the purpose of income tax the interest earned on these FD s should be exempt till my status changes to Resident.
Hi Rajeev,
No Tax will be levied on such Income.
I am an nri and get rent of 8000 per month in indiado the tenant need to deduct tax out of it. i dont have any other income apart from this. the income is below 2.5 lakh
Hi Divya,
The tax must be deducted from the rent payable at the rate of 31.2%. This tax rate is applicable unless the NRI landlord has a certificate stating that his total income from India is below the exemption limit.
I retired in India and settled in USA. I have dividend income from Mutual Funds and the stocks in India. How it would be taxed.
Hi Anand Prakash,
The dividend income, in the hands of a non-resident person (including FPIs and non-resident Indian citizens (NRIs)), is taxable at the rate of 20% without providing for
deduction under any provisions of the Income-tax Act.
I have an NRO account in india and want to transfer regularly Rs 5 lac annually to my saving account in USA. I want to know if it is allowed and tax treatment in USA of this remittance
Hi Anil,
No Tax will be levied.
While I am NRI, can I retain normal bank account in India for credit of amounts to be received in India like LIC survival benefit, maturity claim etc.
Hi ML Bhatia
You have to convert your normal bank account to NRO account for taking said benefits.
I’m wondering if it’s possible for an NRI remotely employed by an Indian company to be paid directly into an American bank account? Also, would that trigger any additional tax or need special permissions since it would be going out of country? And does TDS get applied as a credit against the tax owed when it’s time to file taxes?
Hi Lama
Kindly consult CA regarding this.
I’m an nri housewife with zero income.If i sell my inherited house in india do i need to pay tds and how much
Hi Riya,
You will have to pay tax around 23%
do I need to show Mutual fund redemption income in NRE account in my tax return?
Hi,
Yes you have to show mutual fund redemption income in NRE account in your tax return.
HI there. I want to check if commuted pension received from a pension scheme in India (like ICICI Pru) is taxable for NRI at different rates?
I just want to know whether Long term capital gain tax on sell of NRE equity shares is exempted up to 1 lakh in financial year
I have an insurance policy that has matured in India. Can I transfer that entire amount i.. premiums paid + returns.. into another regular payment policy with the same company, what are the tax implications?
Hii Saira
Yes you can transfer
what is the capital gain on the sale of property
Hii Rajeev
Long term capital gains are taxed at 20% and short term gains shall be taxed at the applicable income tax slab rates for the NRI based on the total income which is taxable in India for the NRI.
NRIs Long-term capital gains are subject to a TDS of 20%. Short-term capital gains are subject to a TDS of 30%.
I am an OCI, with NRE savings/deposit accounts and FCNR deposits accounts. I have no other income in India. The total interest from these NRE/FCNR accounts is little over 5 lakhs. Do I need to file a return? If yes, where do I show the exempt income? I don’t see a schedule EI (Exempt Income) in this year’s tax return
Hii Mr. RK
Interest on NRE and FCNR accounts is tax-free.
It is suitable to take advice from a tax consultant
I am a senior citizen. My income is Pension and Interest from Fixed DEposits.I came to USA on 6th March 2020 on green Card and still in USA.What will be my status for IT purpose for F.Y.2020-21.What are theIT slabs for me and the deductions allowable for me both in old and new tax regimes
Hi Modekurti,
According to me, you will be an NRI for the financial year 2020-2021, but a Tax Consultant will be able to help you with your queries better.
If i ivest the sale proceeds to Capital Gain bonds than th etotal Capital is exempt ?
Hi Sanjay,
According to my knowledge, You can invest the total capital gain in capital gain bonds, the maximum limit is Rs. 50 lacs.
can I transfer my NRO money to NRI account?
Hi Shayam,
Yes you can transfer the money from NRO to NRE account but it requires a lot of documentation, FEMA declaration and some forms to be certified by the CA.
If NRI has income from capital gains how much will be the tax in India
Hi Aman,
The tax depends on the type of asset and also whether it is long-term or short-term.
It is mentioned in the article you can check that.
I am a NRI (US citizen and OCI card holder ) and I receive pension from my earlier job in a bank in India. Am I eligible for the standard deduction of Rs.50000?
how to avoid long term capital gain taxes after selling property in India
Hi Rajen,
You can avoid long-term capital gain tax by purchase capital gain bonds under section 54 EC or you can buy or construct another residential property within six months.
If a NRI sells Unlisted share after 3 years and makes no capital gains ( Purchase and Sale price same). Do the buyer still have to deduct TDS as there is no capital gains.
Hi Ashok,
If there is no capital gain then there will be no TDS.
I am an Indian citizen and resident. My wife is US citizen and ha OCI for India. In case she stays in India mor than a183 days in India. In that case she will still spend about 3 months in USA and would need to continue to file as USA resident. She has less than $ 5000 in Bank account in India and owns flat jointly with me. Most of her financial and teal estate is zin USA. How does she file tax return in India as a resident or as NRI.
Hi Niranjan,
You should consult with a CA for tax filling.
My father is NRI, and had several investment policies in India which matured over several years, what is the tax rate payable on that? Is this classified as income or long-term capital gains?
Hi Dilpreet,
When the premium paid on the policy does not exceed 10% of the sum assured for policies issued after 1 April 2012 and 20% of sum assured for policies issued before 1 April 2012– any amount received on maturity fully exempt from Income Tax. & if the premium paid is more than 10% of the sum assured Any money received will be taxable. This is classified as Income from other sources.
I have two properties in India for which I file income tax returns in full in India. If I repatriate the net income to the UK where I live and am a British citizen, do I have to pay tax here in the UK as well? I believe there is a DTAA arrangement in force between the UK and India. Thank you.
Hi Deepak,
You need to pay tax in the UK as well. However, As per DTAA, you can claim ‘foreign tax credit relief’ while computing your UK tax liability.
Hi, I have two rental properties in India income from which I file snd pay taxes in India. If I repatriate the net income to the UK where I live and am a British citizen, do I have to pay any tax here in the UK as well? I believe there is a DTAA agreement in force between India and the UK. Thank you.
Hi Deepak,
Yes, you have to pay tax in the UK. However, As per DTAA, you can claim ‘foreign tax credit relief’ while computing your UK tax liability.
I am an OCI. How much tax i need to pay on my rental income in india?
Hi Gopi,
Tax rates on rental income for OCI is 31.2%.
Hi, Greetings, I’m an NRI, and my total income for the year ending March 31, 2021, in India would be around 22 Lakhs ( 4 lakhs dividend income and 18 lakhs STCG in stocks ) I’m eligible to avail the first 2.5 lakhs exemption from slab and will the subsequent income be taxed according to the slab ( income mainly from STCG ).
Hi Narasimhan
Yes you are eligible to avail first Rs 2.5 lakh exemption.
if I do investment as NRI how much tax I have to pay?
Hi Manoj,
Tax Rates are different for every investment product.
Hi Hemanth, Hope you are doing well
I need a piece of advice regarding investments made in Mutual Funds from 2014 to July 2019 when I was abroad. I have few MF units and would like to redeem now, but tax status as NRE repatriable.
Happy to pay applicable taxes but continued my investments even after July 2019 with same folios without noticing Tax status ,
1.How can I get the tax status changed? or is it possible to change the status old MF units as well? because all units are more than 2 years without any claim.
2. If not can I apply refund for TDS deducted once after claim of units?
Thanks for your support!
Hi Surya
1. You need to change your KYC status from NRI to Resident.
2. Convert all your NRE/ NRO accounts into resident saving account.
You can claim the TDS refund if your total income in India is below Rs 2.5 lakh in a FY.
I live in Luxembourg. I am planning to open a Demat account in India. (I am an Indian and I work for Amazon in luxembourg). As of now I only pay taxes in Luxembourg. If I open a demat account in India then am I liable to pay taxes only in India on capital gains or am i liable to pay capital gain tax in both luxembourg as well as India.
Hi Abhimanyu,
As per my knowledge it will be taxable in both the countries. for more clearity you should consult with local tax advisor there.
I am retraining and coming back to India after long years from Gulf and i have NRE fixed deposit . once i am back all these amount will be converted to indian account is it taxable?
Hi Gopakumar,
Yes it will be taxable. But if you convert NRE account into RFC account then it will be tax free.
How much tax on stock trading as an NRI?
Hi Charanjit,
There will be 15% tax on gain on equity if you sell before 1 year.
if NRI has a 10-year policy but the income was paid in one lump sum on maturity, can that income be split out across the 10 years for tax calculation purposes?
Hi Dilpreet,
As per my knowledge you can’t do that. for more clearity he should consult with a CA for this.
TDS deductible on sale of property by RNOR?
HI RK,
It will be 20% TDS
Is the TDS deducted from the income in nro acct such as rent, fd, and sav interest, etc be claimed to be refunded in the income tax return?
Hi Manish,
Yes the refund can be claimed if the total income is less than Rs 2.5 lakh in a FY.
NRI living in the USA has only NRE fixed deposit interest does he have to file an income tax return?
Hi Harry,
No he doesn’t need to file ITR as NRE FD is tax free.
My father is a US citizen and has income in India (Government pension). There is no extra income than Pension. Can he pay tax in the US only and not in India? Also, does he need to pay tax in India on interest received from pension money in (bank account in India).
Hi Ronak,
As per my knowledge, your father has to pay tax in the US as global income is taxable in the US and in India if the income does not exceed Rs 250000 in FY then he does not need to pay tax in India.
Hi Ronak,
As per my knowledge for an US citizen Income across global is taxable in US.(Can take benifits under DTAA (Double Tax Avoidance Act)).
In India if the total income is not exceed Rs 2.5 lakh in a FY then he doesn’t need to pay tax.
I need to know about the surcharge on short term gain for NRI in India.
Hi Krishan,
There is no Surcharge on short term gain. But there is 15% surcharge if the total income in india is above 1cr.
Can the gain under STCG and loss under LTCG be offset?
Hi Mahesh,
Long term capital loss can be set off only against LTCG. And Short term capital loss can be set off against both STCG & LTCG.
i am an nre’. please let me know income tax slab in my indian income. Especially share market income.
Hi Naseer,
Tax slab is same for NRI as well as Resident.There is 15% tax on short term capital gain on equity & 10% tax on long term capital gain.(if the gain is above Rs. 1 lakh)
Last FY I was in India. I filed return. Now I’m in foreign. Can I file?
Hi Mohamed,
If you have any income in India which is more than 2.5 lakh then you should file ITR.
I am NRI can I claim a Standard deduction on pension from Indian Employment.
Hi Ashok,
Yes you can claim standard deduction on pension.
What should be the ITR form for dependents of NRI who has income only in India?
Hi Ajay,
As per my knowledge its ITR -1 form for dependents.
Annuity income from Pension Plan is taxable for NRI?
Hi Mahesh,
If the Annuity income is above Rs 2.5 lakh then it is taxable.
For FY 2019-2020 can the short term and long term capital gain be included in the total income for the purpose of taxation?
Hi Mahesh,
Short term gain will be added in income and taxed as per tax slab. and long term capital gain will be taxed @ 20% with indexation.
I am an NRI. If my sister gives me a gift of 8 lakhs, how much is TDS, and who pays it?
No tax on gift from relative.
What is the tax-free threshold for NRIs having an NRO account in India?
250,000
What are the tax rates for NRI who is more than 60 years of age?
Hi Viren,
Tax rates are same for NRI as well as indian resident.
I got a property in 2019 and am selling it now. My capital gain is Rs. 700,000. What is my tax liability and can I get a TDS exemption certificate?
Hi Ravi,
As you are selling this property within 2 years so there will be 30% TDS on sale value. You can claim for the TDS exemption if you buy another property or invest in capital gain bonds within time limit.
How much Dividend TDS for Nri?
Hi Junaid,
Its 20% TDS.
We are in the USA and have an NRO joint account. if the interest on the amount is 2lakhs 50,000 do we have to file taxes?
Hi Suma,
There is 30% TDS on interest on NRO account. If your total income in india does not exceed Rs 250000 you don’t need to file return. For TDS refund you should file ITR.
Where can I file tax documents for an NRE account?
How do I pay tax on inheritance funds received from the sale of an ancestral home? I am currently abroad.
For an NRE account [joint with a resident Indian], which tax forms and documents are required for inheritance funds from the sale of ancestral home?
Which documents are required from SBI? Thank you.
Hi Shona,
You should consult with a CA regarding this.
what are income tax rates for NRI senior citizen aged 78 years for AY2020-21 and exemptions which were availed till AY 2019-20 & whether *0U & DDB whether still can be abailed for AY20210-21
Hi Ramani,
Tax rates are same for the NRI senior citizen as it is for resident senior citizen & exemption under 80U and 80DDB are still available.
Tax on Short term capital gain on sale of equity shares for NRI
Hi Lakshh,
There will be 15% tax on stcg on sale of equity shares.
Hi Lakshh,
Its 15% tax on STCG on sale of shares.
I am staying in UAE and earning 5lakh per year, and transferring this amount to India do I have to pay tax.
Hi kashif,
If you are transferring this amount to your relative then its tax-free. otherwise the receiver has to pay the tax.
Hi,
If my long term capital gain is 1.5 lack and I don’t have any other income source in india then Did i fall under Income tax slab nil or I have to pay the 10% capital gain?
Hi sikander,
Yes you have to pay the 10% tax on gain.
Hi, Is income from sale of shares considered in calculating the limit of 15 Lakh to decide Resident or Non Resident Indian ??
Thank you
Regards
Hi Madhu,
No it will not be considered.
I am an NRI, non-resident for tax purposes in India for 2019-20. I have 29000 in long term capital gains in non-equity mutual funds, 6000 in short term capital gains from non-equity mutual funds, and 5000 in long term capital gains from equity mutual funds, Should I file taxes in India?
Hi Kushal,
You should file taxes. As there is 20% tax on LTCG & 30% on STCG on non-equity mutual funds. also, you can claim for refund if your total income in India is less than 250000.
i am NRI aged 68 and have shares. What’s my tax status on the sale of these shares short term?
Hi Khambaty,
There will be 15% tax on STCG on sale of shares.
Hi Khambaty,
There will be 15% tax on STCG on share of shares.
DO NRIS need to Pay tax for the Money They earn outside India or the Amount in NRE Account?
Hi Uthaman,
No, they do not need to pay tax in India.
I came to Canada on a study permit in 2017 and there are some traditional life insurance and ULIP policies I have in India and for which I am paying a continuous premium, Need to know when they will be matured, would i need to pay taxes on the appreciation i would get?
Hi Sanjeev,
If the annual premium of the policy is more than 10% of the sum assured, then it will be taxable on maturity.
how much tax need to pay on rental income in India if I live in US?
Hi Ravi,
Rent received will be added in your total income and tax will be applicable according to the tax slab.
Capital gain on equity Investment – Short term / long term tax rates?
Hi Rajesh,
As per my knowledge,
Short term capital gains 15% + 4% cess = 15.60%
Long term capital gains 10% + 4% cess = 10.40% (if the long term gain exceeds Rs 1 Lakh)
If I have rental income and income from shares in India being an NRI what is my tax liability?
Hi Monika,
If your income in India (by way of interest from savings , rental income) exceeds Rs. 2,50,000, then you must file a tax return in India. Tax will be applicable according to the tax slab.
What is BEL for a non-resident who is aged 65 and for a non-resident aged 85?
What will be the tax implication for NRI – TDS + surcharge + heath + Education Cess?
Hi Amit,
As per my knowledge,
The TDS is 20% (plus cess and surcharge applicable)
I am an Australian citizen of Indian origin & would like to sell my property in Mumbai how much tax do I pay on a sale of around 3cr.
Hi June,
Tax implications are the same as Resident of India but for the NRI TDS on Long Term Capital Gain is 20%.
Thanks Kittu for the NRI TDS 20%.
Is there a surcharge + health + education tax, whats the %.
Hi ,
I think it is 4%.
I have an NRO account in India. If I transfer 25 Lacs (got from my property sale) to this account within India, how much tax will be deducted?
Hi Mujib,
As per my Knowledge, The tax will be deducted as per the capital gain earned on the sale of that property and also from where you would be transferring the money into the NRO account.
can I claim rs.50000.00 as standard deduction being an NRI for filing a 2019-2020 return?
Hi Santhosh,
Yes you can claim the standard dedcution.
I am 80 years plus got Canadian pr on 06 sep 2018. will i get full privilege of a very senior citizen thas financial year?
Is the income from share intra/inter day trading is taxable if i do it from my NRO a/c?
Hi Mukesh,
Yes, it will be Taxable.
I am in australia. i have a NRO account in sbi where my indian pension is credited. How can i access it from here?
Hi Sarangapani,
As per my Knowledge, NRIs can remit up to 1 million USD in a financial year, I Think To remit funds from the NRO account, two forms are to be submitted 15CA and 15CB.
I sold my flat in India on January 31, 2020 – do I need to file capital gains in ay20-21 or can I defer to a later date – I am an NRI – also do I use itr 1 or itr 2?
what is the income tax for an NRI towards income earned in India? up to what slab no income tax?
Hi Maria,
The income tax slab varies as per the income earned, up to income of Rs. 2.5 lacs the NRI doesn’t have to pay taxes.
If i pay rent to NRI , can I have to deduct tds while making payment?
Hi Indira,
As per my knowledge, You will have to deduct TDS and cess on the Rent paid to the NRI.
thanks Raman, for your reply. Is there a relevant Income Tax regulatory section/ article number that you can share to confirm it?
Is upto 250000 dividend income tax-free for NRI?
Hi Rajeev,
As per my knowledge, yes but TDS would deduct on it.
NRI Person Dividend Income FY 2020-2021 is taxable or Fully Exempt?
Hi Abhishek,
If the overall income is less than 2.5 Lac it will be exempt. otherwise, it will be taxed as per the tax slab.
For this current financial year 2020-2021 what will be the NRI qualifying criteria. Because of lockdown we are unable to complete 182 days criteria this year.
Hi Neha,
As per my Knowledge, I think there have been some exemptions due to the lockdown, However for the year 2020-2021 120 days, will apply only for NRIs whose total income in India during a financial year is over Rs 15 lakh. So, NRIs on an India visit, whose taxable income in India was up to Rs 15 lakh during a financial year would remain NRIs if their stay doesn’t exceed 181 days.
I have an ICIC Pru life surrender in cash that I need to transfer to my NRE or NRO account. ( which one ?) What are the tax implications? What would you advice?
Hi Nagesh.
I Think You can transfer the money to NRE account as it is tax free as well.
I receive income in form of dividends from shares and also short term capital gain. I can claim for refund?
Hi Mohamed,
As per my knowledge
Refunds cannot be claimed for TDS and Short term capital gains
if i am selling property in India and at the same price as i bought it is there any capital gains tax to pay?
hi Bhupinder
as per my knowledge No you do not have to pay any capital gains if you purchase a new property against it.
I am an NRI, working fulltime in the US. If I work for a freelancing firm online as a parttime job and deposit the pay in my indian NRO account. Is that allowed ? I am willing to pay taxes on that in India.
Hi vineel,
Yes, you can do that.
Is NRE has to pay TDS for mutual fund gains?
Hi, Julian
NRI has to pay TDS on mutual funds Gain.
*For FY 2019-2020*- stayed in UAE from Aug 1 till March 31 (excluding some vacation days)= around 215 days. For FY 2020-2021- stayed in UAE from April 1, 2020 till Aug 31 2020. So no of days= 153.Before these two years, no history of employment outside india.I need to know if i will have to pay income tax for these two years?
Do nri have to pay tax?
Hi Jatinder,
If the NRI has income in India and it generates tax liability then yes. otherwise no.
Hello, I have sold the property in India and incurred a long term gain and have to open capital gain saving account in India. I have SBI account in India but looks like this process needs account holder to visit India and I am stuck in London. Is there a way to open capital gain account without visiting India?
Need advise on management of income earned abroad to be paid in India by their Indian company.
Hi Suresh,
As per my knowledge, I think the Income received in India would be considered as Indian Income.
I am working in Germany and planning to shift back to india in October 2020. And now according to new budget one should pay tax on their global income if one lives more than 120 days in India. So my question is how my taxable income will be decided? will they consider my global income or tax and rent i paid in germany will be removed?
As a NRI if I am stuck in India for FI 2020-21 what are tax liabilities I might have?
Hi Punit,
As per my Knowledge, If your stay in India exceeds the 181 days limit or the 120 days limit if your income is more than Rs. 15 lacs in India, then you would be considered as a Resident and your tax liability would be considered as that of a resident.
If a NRI from USA invests in India, then is there any tax applicable for that person in USA? If yes, then clarify the details about it.
Hi Anil, Yes tax would be applicable in the US as well but you can take the benefit of DTAA in that case.
If an NRI receives Receipts from Endowment plans like monthly pension to his NRE account, does that make the income received exempt?
Hi, Ashwin.
The amount received from insurance plans would be exempt from tax.
Hey,
I doubt it. I’ll make it easier. Since when did Pension plans provided by Insurance Companies become exempt?
10(10A) and 10(10D) is not applicable in this case. So kindly specify the section from the bare act.
Hey Ashwin,
Yes, the income is exempt.
Hey Yash,
Do me a favour and specify the section under which the said pension receipts from Insurance Companies are exempt.
Thank you.
what would be the tax on dividend to be paid by nri in fy20-21? Would the tax rate be as per the taxable income in india or is there any fixed rate?
Hi Vris,
It’s 20% for NRIs.
Do I have to file tax, I am NRI.
It’s always better to file ITR even if you are not liable to pay any tax.
Hey Deepak,
Yes if you have any Indian income.
Hi! On becoming resident after finishing my NROR status, I recently changed my NRE FD to resident FD as bank will not allow me to change status only in NRE savings account. It was a 10 year FD which bank converted to resident FD at same old FD rate till it’s balance maturity period after calculating the interest till date and adding it to principal amount for new resident FD. It was very quick and easily done. Now they will start deducting TDS @7.5% which will result in some loss in maturity amount as reinvested interest will reduce after TDS deduction.
For non equity mutual funds, can the capital gains be adjusted against basic excemption?
Hi Raja,
There is no such thing.
The short term capital gains are added to one’s income and are taxable as per the income slab.
How does NRI claim back TDS deducted by Companies on Dividend paid to shareholders?
I will be returning to India in Aug. Currently, My status is NRI. How much tax I have to pay on my salary in India after returning?
Hi Jitender,
The tax on your salary will be deducted as per the income tax slab applicable.
I want to know what are the income Tax Rates for NRIs for the current year (2021-22)?
Hi I am an NRI living in UK. My ICICI Prudential Life Insurance policy is getting matured in August. Assured amount is less than 2.5L. Will there be any tax deducted on that amount? If yes, then if I file tax return shall I get back the full refund of the taxable amount? I do not have any other income in India at the moment. Please confirm.
Is Dividend income taxable for NRI?
Hi,
As per my knowledge, TDS is deducted on Dividend Income, If the dividend exceeds 250000 then one would have to file ITR.
What are the current criteria as per the Indian budget for calling someones as NRI?
Hi my father (Retired pension) holding OCI Card with foreign nationality ……he is receiving rent on property which is around 18 lacs per annum and he Stayed in india for 165 days during last financial year…..but during last 4 years he stayed more than 365 days
My question is that what will be his residential status during this financial year
He has no other income from India or abroad
Does he has to pay tax on nre fixed deposit
Thanks for help
I am a french citizen but origin Indian, now I want to invest some money in India in the stock market for long term gain and some short term gain as well. How much tax do I need to pay? Are there any slabs for these incomes in Indian tax système? Is it possible to get déduction for the gain?
Do I need to pay income tax as an NRI on the LIC maturity amount?
Hi Aester,
I think, If the SA is more than Rs. 2.5 Lac then one would have to pay tax on it.
What type of Taxes to be paid by NRI for income received from Shares in a repatriable account?
Hi Prakash,
as per my knowledge if the shares are traded on daily basis then the income would be business income and the tax would be paid as per the income tax slab.
If the stocks are held for investment purposes then capital gain taxes and TDS would have to be paid.
I am the Executor of my friends Will and when she died, she held several Mutual funds in India and I am in the process of trying to redeem the funds. To do this, I had to open an Indian Bank account for those funds to go in it. My question is, do I have to pay tax on this money? I live in the UK.
Hi Janet, as per my knowledge one has to pay any tax liability that is supposed to be paid out of the redemption amount Received.
Interest income exemption for NRI financial year 2019-20.
is there any specific limit after which the tenant is required to deduct 30% from the rent or for all amount of rent.
The limit after which TDS is deducted is Rs. 2.4 Lacs, the rates for TDS deduction are different. But as per my knowledge, 30% TDS is not applicable in any case. However, a standard deduction of 30% can be claimed on the rental income.
NRI’s interest in Bank accounts is taxable?
NRE account is Tax-free for NRIs,
But interest earned on NRO account is taxable if the interest earned is more than 10000 I guess, and TDS is Deducted on it as well as Cess.
I am professional and NRI since 2014 onwards. Till 2017 I was based in the gulf and working full time. Since 2018 I am a consultant / advisor to the company and spend about 7 months in the gulf and draw a salary there. The last financial year I have stayed about 210 days abroad but if you take in the last 4 years it may come to a little more then 390 days. What will be my status? Will I be considered NRI? Please clarify. Thanks
Been an NRI since 1999 and never filled income tax. What can you advise me?
As per my knowledge, if you want to come to India and iF you want to invest in India then you can file ITR.
does NRI have to pay income tax on principal amount in fixed deposits when they return back?
Hey Elizabeth,
As per my concern no.
Is the basic exemption limit applicable to NRI for computing Tax?
Hi Riyaz,
The basic exemption limit for NRIs is Rs. 2.5Lac. However, This exemption cannot be claimed on the Long term and Short term Capital Gains.
I am working in International and getting salary at International only , if I take my salary direct into my Saving account then in which slab I have to pay income tax in india
How is NRI status for tax purposes calculated for OCI with British citizenship, if the person plans to settle in India? Will that person always have NRI status or convert to resident status after 180/240 days?
As per my research, as soon as you step down in India and fulfill the conditions of Income Tax. Your residential will change according to that.
I am an NRI and I have a property to seel in India. How can I avoid the TDS?
Hi Elvis,
As per my knowledge, you cannot avoid TDS deduction but you can claim it back if you file you ITR.
If the sale proceed is less than 50 lakh, then no TDS will be deducted.
Is my income earned from LIC premium maturity taxable in the US? It’s tax-free in India.
Hi Nish,
As per my knowledge, LIC maturity is tax-free u/s 10(10)(d) for all.
I work overseas need to pay the tax?
Hi. Prem,
You need to pay Tax, if you earn something in India.
I AM AN NRI AND GETTING PENSION FROM INDIA. WHETHER TDS WILL BE THERE ON PENSION OR I HAVE TO PAY TAX WHILE FILING, IF ANY.
Hi Joe,
If you are getting Pension from NPS, then the TDS will be deducted but you can claim it back while filing Tax return in India,
I am NRI 77 yrs age residing in the USA. I have nro acct with SBI in India. I earned this year’s interest income of Rs 43200 from nro acct. Rs262500 from rec bond and Rs165800 interest on income tax refund. I earned a dividend of Rs11100 from equity shares and ltcg Rs8700 from the sale of equity shares in India. Please advise how much income tax I shall have to pay in India.
Please consult your CA, as he can advise you better.
If I have exited India on the 2nd of December and entered on the 6th of December. How many days out of the country is this considered?
3rd , 4th, 5th Dec will be count as outside India.
As per the Income tax laws when an Indian become an NRI he must close all his savings and Fixed deposits accounts in Indian banks. Where can he put or transfer his savings or Fixed deposits in India?
Dear Gopal,
You don’t have to close – just convert that to NRO.
I was on a ship for 177 days. Got for the 177 days abroad. How to save income tax?
Hi Lokesh,
You can Save Tax by investing at certain places such as ELSS, Insurance, PPF, NPS and many more like that, but this all will be determined as per your residential status.
Hi…I want to know what is the tax regulation for NRI if they want to sell their property and want to take the proceedings to their country of residence.
Hi Neha
If the property held for long term its 20% TDS and for short term 30% TDS is applicable on gains
how to get tds refund on the resale of property as an NRI
Hi Gaurav
You need to file income tax returns to get TDS Refund.
How long does it typically takes for TDS refund back as an NRI? If I sell my property in Dec19 then by when can I expect the extra TDS refund back? Will govt. pay any interest rate on it for that period?
Hi,
You will file your tax in April – after that another 4-6 months for a refund. Interest – there are many rules but you can consider 6% taxable interest from 1st day of next financial year.
good
🙂
Does nri has to show his self occupied residence house in usa in any form like 1049,fbar or 8968 or any where else in usa??
Dear Sanjeev
Please consult Tax consultant in the USA
I am a NRI planning to sell a property in India which is above 50 lacs.I have 2 qns:1. To avoid 20% deduction by tax, how should I invest in capital gains? What is the procedure to claim 20% exemption? Will the tax be deducted first and I have to claim letter or can I avoid deduction upfront?>2. In the sale agreement between me and the prospective buyer, can I put a clause of nonrefundable deposit advance if the buyer fails to purchase in 2 months’ time? In this, I want to specifically know if a nonrefundable amount and 2 months period is legally admissible or if I am violating any law. Thank you
Hi Maria,
1) You can save your 20% Tax, if you invest the sell value in some scheme such as buying a different property or investing into government bonds.
2) Yes, you can put this clause but advisable to consult a Property consultant or a lawyer for best advise.
Hi Anil,
Consult with your CA
As I said in my previous chat that the tax deducted in India after the maturity of my UTI policy how do I get my tax back as I have not earned any other income in India.I want to submit my tax return. please advise how should I proceed to get a refund. Thanks
How much income for NRI is non taxable in india?
Hi Varsha,
Tax slabs and deductions are almost the same as the resident slabs, and it will again depend on what amount of deductions you are claiming.
I am NRI. I have purchased under construction flat in 2017 Dec construction started in 2015 in Pune. Builder sent demand latter with 12% GST. Should I pay 12% GST?
Hi. Neeraj,
I think a CA can help you with this issue.
Hi, I am a NRI. I would like to sell a property in India purchased 10 yrs ago for 55 lacs I was told about 22% tax. Is the tax recently increased by Govt? If I invest in capital gains can I avoid the tax? How many years the money will be locked in capital gain.
Hi Maria,
LTCG Tax rate is 20% with indexation. Yes, you can save tax by investing in Capital gain bonds with a lockin period of 5 years.
Sir, Many NRI’s are investing in P2P lending platforms. What about the tax on earned income ?
Hi. Uday
You have to disclose the interest earned from the P2P lending under the head income from other sources.
US citizen residing in India for more than 5 years, what is tax implication in India for income in USA
Hi Kaushik,
He will be treated as resident Indian and tax is applicable to Indian tax laws.
I am an NRI having earned an below taxable limit interest in my savings account in India where tds has been deducted. To claim that tds if I wish to file ITR which form i should use?
Hi P.K.
Consult a good CA about this TDS refund.
i live in bahrain and i deposit my salary in my india account so india govt cut any taxes which i deposit in india
Hi. Mohit,
In this case, you don’t have to pay any tax in India but your salary is taxable in Bahrain.
What documents I have to submit with income tax form as Iam NRI
Hi Sunny
passport to show the number of days spent outside India to qualify as an NRI.
Statements for the Demat accounts, for the transactions and bank accounts held in India, as well as the TDS certificates received from other parties.
am an NRI and need to fill ITR in India wanted to know process for the same
Hi. Anil
You can fill through the online process of the Income-tax Department or through a CA.
i would like to know about the income tax deduction
Hi Raman,
You avail all the tax deductions available to an individual in India.
For more information about this please visit to the site of Income-tax department of India.
basic info useful ! Thanks
Thanks 🙂
I am NRI planning to return back to India and have a full-time job there. Now when I do return back I would obviously be returning back with my finances, so would there be any taxes levied on me for bringing in these funds?
Hi Prasann,
No tax will be levied in India but still, have a word with a good CA for a smooth process.
Hi. Ankur,
Yes, you have to declare the Income while filing the ITR and can take the deduction for the same.
Whether pension from LIC is taxable???
Hi Vinod,
If you are talking about Annuity – yes, it’s taxable.
For NRIs, interest from NRE and FCNR accounts are tax-free, do they have to be declared as exempted income in filing of returns and added to total income. Or they dont have to be included at all? If they have to be part of total income, how do you determine the value of FCNR deposits as the amounts are no in Indian Rupees?
What’s the deduction for seniors
Hi. Basti,
For Senior Citizens
Up to 3 lakhs – Nil.
3 lakhs to 5 lakhs – 5%.
5 lakhs to 10 lakhs – 20%
Above 10 lakhs – 30%.
for more details, about deduction and all you can visit Income Tax of India Website.
i am NRI having NRI Investment in stocks , once i come to india andd become NRO , will there will be Tax on profit on tax , other than capital gains tax
Yes, the profit will attract only capital gain tax and it will taxed on the basis of how long you hold them.
How DTAA apply to NRI
Hi Tulip
https://www.wisenri.com/tax-strategies-for-nris/
You can check this.
I may return to India in June 2020. In that year, will my foregin salary be treated as resident indian income?
Hi. Thyagarajan,
If you qualify as a Non-Resident Status than this Income is taxable globally but can take advantage of DTAA.
How the gratuity earned outside India is taxed on return to India
Hi. Chiman,
Your retirement money, which is earned and directly received outside India and then subsequently repatriated to India, will not be taxable in India.
Helo
I am NRI, my annual rental income is 480k.
How much percentage of tax I am liable to pay.
My tenant is saying he will deduct 30% TDS
How much I can claim back?
Hi Qayyum,
If you don’t have any other income – you can simply file tax in India & take refund.
Hi,
As a house wife I am staying with my husband in UAE last 6 year, additionally my visa is sponsored (Dependent Visa) on my husband job visa.
As I know any Indian leaving outside INDIA more than 182 days in financial year become NRI. Now the question is,
* House wife can able to open a NRE account in INDIA?
If yes, then please find the below requested question,
* Currently I am doing some handicraft work and earn some cash money irregular base. Currently I don’t have any bank account In UAE. Now If, I am planning to send money through authorize exchange center in my NRE account, then any income tax risk waiting for me when I will be back to INDIA.
* Currently my husband have job visa and I have dependent visa. Is it possible in India tax system, my NRI money will start to calculate as my husband income, because of my visa status? Additionally future earned interest will start calculating as a clubbing income of my husband and it increases my husband tax liability.
Or
India tax system believe, both party NRE account money is an individual assets and both party are, not able to claim others money.
Example:-
(If I am eligible to open a NRE account)
My INDIA NRE account :- I have 1,000,000 (10 lakhs) and later when comeback to India taxable Interest gain yearly 6% base 60,000 (60 thousand),
In my husband INDIA NRE account :- have 4,000,000 (40 lakhs) and later when comeback to India taxable Interest gain yearly 6% base 240,000 (2 lakhs 40 thousand)
Husband Clubbing income :- Any chance India tax system start calculating this money my Husband Clubbing income (240,000+60,000) = 300,000 (3 lakhs)
Or
Both party incomes are separate and in my money, there is no legal ownership of my husband. So my taxable income is 60,000 (60 thousand) and my husband taxable income is 240,000 (2 lakhs 40 thousand)
Thanks,
If my FD savings interest income is less that 2.5l, do I fall in no tax slab?
Hi Anushree,
If you fall within 2.5 lac limit, it is not mandatory to file the return.
But if TDS is deducted on your FD, you can claim refund by filing return. You can also submit 15G form to bank for not deducting TDS on FD interest as your income is within basic exemption limit
I am a Irish citizen of Indian origin. I am selling property in India for 50 lakh rupees. What will be the capital gain tax
Dear Kamal,
This information is insufficient to give any advice.
Can my company transfer a part of my salary to NRE account to avoid high taxation in a foreign country?
They can but I am not sure if you will be able to save tax due to Double Taxation Avoidance Agreements DTAA.
NRI person is INCOME TAX PAYEBLE OR NOT
Dear Ramesh,
NRIs have to file tax in India but check this post https://www.wisenri.com/do-nri-need-to-file-tax-in-india/
I am NRi and i earn only pension about 5 lakh yearly.What deductins i am allowed
You have mentioned that it is important to close all resident accounts when you become nri.
I have few savings and a pp account in India. I have been living in US for more than a year.
Do I need to close them? Where should I park the amount available in those accounts? What happens to FDs?
Hi Ankur,
You can convert you accounts to NRO.
From ICICI prulife insurence ( pension schme i invested in 2008 . maturity on 2018, and the pension strated from sept 2018. how much tds % cut
Hi Binayak,
There will be 30% TDS but you can take a refund.
NRI selling property in India..is TDs rate for NRI 20%? So on 90 lakh proceeds will 18 lakh be TDS?
Hi Rahul,
Yes, Long Term TDS on sale of property 20.6%. NRI in case falls under the lower slab can request and apply for low or no TDS – talk to your CA.
Buyer should have TAN. Normal transaction not possible when buyer/seller is an NRI.
Dear Hemant,
In the following situation NRI does not need to file a return:
If Indian income is below taxable limit
and
If relevant TDS has been done at the applicable rate and assesee is either not eligible or not desirous of applying for a refund
Thanks for Sharing.
Explain what is tax implication on gains from INHERITED agricultural land
Hi Seetharama,
Agriculture land is not considered as Capital Asset – if it’s out of municipal boundary. I will suggest you have a word with a CA.