Sep 10
14
As the economy of India continues to grow, there is a surge of NRI’s wanting to invest or even return to India. For them, the primary worry is the Indian tax system and structure as they do not want to lose too much of the money they made abroad. But over the years the Indian government has simplified tax rates and as a non resident Indian you can avail of several benefits upfront, including a lot of tax exemptions for NRIs that can be found online..
Many benefits
There are many categories for tax payments required by NRI’s, but on the whole, they have to pay tax to the Indian income tax authorities if their income, allowance or salary originates in Indian soil. It is nearly the same as those living in India and is known to be permanent residents. But all NRI’s have to pay tax if the income was earned from any business dealing with India or from any buying and selling of real estate.
Indian income tax authorities will consider generation of income for NRI’s if they had earned profits from any source or asset in India and also on salaries received for any services rendered in India. If the NRI receives any dividend from shares of Indian companies whether in India or abroad, he or she would be liable to pay tax. The shares have to be held in a demat account as is customary in India these days. It does not matter whether the dividends have been paid outside India.
If the government pays any interest or royalty, tax is to be paid on that as well as on income from fees earned from technical services. According to the income tax law in India, a NRI is not liable to pay tax if he or she runs a news agency or magazine and income is earned form news and views collection with the sole aim of relaying them outside India. If a film is not shot in partnership and does not have an affiliate as an Indian citizen, tax is not liable.
But non resident Indians can benefit from loads of provisions like joint holdings, exemptions from investments income and their remittances are more simplified than that of others. For many types of incomes, NRI’s are allowed concessions for their tax calculation.
To understand the income tax liability clearly, a difference has been made between overseas citizens if India and peoples of Indian origin and you can check out the websites of the NRI investment sites for more details.
Concession for Bonds
The streamlining of tax liabilities for different classes of people and those living abroad has made it more simple and easy for NRI’s to earn income from India for services rendered or for business activities. NRI’s can invest in the Indian share market and benefit from the money making opportunity it offers.
Many investors from overseas are coming in to take part in the boom that India has witnessed in recent years with stock prices shooting up to the roof. If you earn income from NRI bonds 1988 and the second series as a NRI, you can get preferential treatment as the tax concessions can be availed by you even after you become a resident of India. The certificates have to be bought in convertible foreign currency that is remitted from abroad.
The remittances have to be in accordance with the Foreign Exchange Regulation Act prevalent in India. For long term capital gains in regard to transfer of assets, NRI’s are taxed at 10 percent while for income form share trading and a foreign exchange asset, it is 20 percent. If the tax of a NRI has been deducted at source, he or she will not be liable to file returns.
I like your post. Online tax calculation is very easy for tax payers. There are so many tax calculators are available on internet for tax calculation, state tax calculation, federal tax calculator, tax refund calculator but SSN number, filing status, income, deductions and credit is necessary for calculate our taxes.
[...] process of filing tax return of a NRI is as [...]