{"id":5935,"date":"2023-12-06T11:39:19","date_gmt":"2023-12-06T06:09:19","guid":{"rendered":"https:\/\/simplemyfiling.com\/?p=5935"},"modified":"2023-12-06T11:50:26","modified_gmt":"2023-12-06T06:20:26","slug":"tax-liability-of-a-non-resident-indian-nri","status":"publish","type":"post","link":"https:\/\/simplemyfiling.com\/index.php\/2023\/12\/06\/tax-liability-of-a-non-resident-indian-nri\/","title":{"rendered":"TAX LIABILITY OF A NON RESIDENT INDIAN (NRI)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5935\" class=\"elementor elementor-5935\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a080083 e-flex e-con-boxed e-con e-parent\" data-id=\"a080083\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e301a2e eael-dual-header-content-align-center elementor-widget elementor-widget-eael-dual-color-header\" data-id=\"e301a2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"eael-dual-color-header.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"eael-dual-header\">\n\t\t\t\t<h2 class=\"title eael-dch-title\"><span class=\"eael-dch-title-text eael-dch-title-lead lead solid-color\">TAX LIABILITY OF A<\/span> <span class=\"eael-dch-title-text\"> NON RESIDENT INDIAN (NRI)<\/span><\/h2>\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-375a9e09 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"375a9e09\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-515d5dcd\" data-id=\"515d5dcd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6580e071 elementor-widget elementor-widget-text-editor\" data-id=\"6580e071\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<div class=\"is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure style=\"text-align: left;\">\n<ul>\n<li>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-sojdz-79elbk h-full\">\n<div class=\"react-scroll-to-bottom--css-sojdz-1n7m0yu\">\n<div class=\"flex flex-col pb-9 text-sm\">\n<div class=\"w-full text-token-text-primary\" data-testid=\"conversation-turn-482\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 md:py-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl lg:max-w-[40rem] xl:max-w-[48rem] } group final-completion\">\n<div class=\"relative flex w-full flex-col lg:w-[calc(100%-115px)] agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"737c554f-f147-41ce-ac4c-b619ce5b2328\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>In India, an individual&#8217;s tax liability is contingent upon their residential status, which is categorized into three types under the Income Tax Act of 1961:<\/p>\n<ol>\n<li><strong>Resident (ROR)<\/strong><\/li>\n<li><strong>Resident but Not Ordinarily Resident (RNOR)<\/strong><\/li>\n<li><strong>Non-Resident (NR)<\/strong><\/li>\n<\/ol>\n<p>The term &#8220;Non-Resident Indian&#8221; (NRI) is not explicitly defined in the Income Tax Act but is determined based on specific criteria.<\/p>\n<p><strong>Residential Criteria<\/strong><\/p>\n<p>As per Section 6(1) of the Income Tax Act, an individual is considered a resident in India if they meet any of the following conditions:<\/p>\n<ul>\n<li>Stay in India for 182 days or more in a financial year.<\/li>\n<li>Stay in India for 60 days or more in a financial year and 365 days or more during the four years immediately preceding the previous year.<\/li>\n<\/ul>\n<p>Notably, for Indian citizens working abroad or crew members on Indian ships, only the first condition applies. The Finance Act 2020 introduced a significant amendment for Indian citizens or Persons of Indian Origin visiting India, impacting their residential status.<\/p>\n<p><strong>Finance Act Amendment 2020<\/strong><\/p>\n<p>The Finance Act 2020 amended residency provisions, now classifying Indian citizens or Persons of Indian Origin as RNOR under specific conditions:<\/p>\n<ul>\n<li>Total income (excluding foreign income) is Rs 15 lakh or more.<\/li>\n<li>Stayed in India for more than 120 days but less than 182 days in the previous year.<\/li>\n<li>Stayed in India for 365 days or more in the four years preceding the previous year.<\/li>\n<\/ul>\n<p>This change may result in the loss of Double Taxation Avoidance Agreement (DTAA) benefits, an increased scope of total income for taxability, and the loss of various exemptions.<\/p>\n<p><strong>Tax Liability for NRIs<\/strong><\/p>\n<p>For Non-Resident Indians (NRIs), the tax burden in India is limited to income earned within the country. They are not required to pay tax in India on their international earnings.<\/p>\n<p><strong>Income Categories for NRIs<\/strong><\/p>\n<ol>\n<li>\n<p><strong>Income from Salary:<\/strong> Taxable only if earned for services provided in India.<\/p>\n<\/li>\n<li>\n<p><strong>Income from House Property:<\/strong> Taxable if the property is situated in India, following the same calculation methods as applicable to residents.<\/p>\n<\/li>\n<li>\n<p><strong>Income from Capital Gains:<\/strong> Taxable for gains from the transfer of assets situated in India, including investments in Indian shares and securities.<\/p>\n<\/li>\n<li>\n<p><strong>Income from Other Sources:<\/strong><\/p>\n<ul>\n<li>Interest income from fixed deposits and savings accounts in Indian banks is taxable.<\/li>\n<li>Interest on NRE and FCNR accounts is tax-free.<\/li>\n<li>Interest on NRO accounts is fully taxable.<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><strong>Income from Business and Profession:<\/strong> Any income earned by an NRI from a business controlled or set up in India is taxable.<\/p>\n<\/li>\n<\/ol>\n<p>Understanding these tax implications is crucial for NRIs to comply with Indian tax regulations and explore available relief mechanisms under DTAA.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/figure>\n<\/div>\n<p><div class=\"wp-block-post-date\"><time datetime=\"2023-12-06T11:39:19+05:30\">6 December 2023<\/time><\/div><div class=\"wp-block-post-author\"><div class=\"wp-block-post-author__avatar\"><img alt='' src='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=48&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=96&#038;d=mm&#038;r=g 2x' class='avatar avatar-48 photo' height='48' width='48' \/><\/div><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\">Himanshu sekhar<\/p><\/div><\/div><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>TAX LIABILITY OF A NON RESIDENT INDIAN (NRI) In India, an individual&#8217;s tax liability is contingent upon their residential status, which is categorized into three types under the Income Tax Act of 1961: Resident (ROR) Resident but Not Ordinarily Resident (RNOR) Non-Resident (NR) The term &#8220;Non-Resident Indian&#8221; (NRI) is not explicitly defined in the Income [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5764,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[416],"tags":[420,490],"class_list":["post-5935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","tag-income-tax","tag-nri"],"blocksy_meta":[],"jetpack_featured_media_url":"https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg","jetpack_sharing_enabled":true,"rttpg_featured_image_url":{"full":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"landscape":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"portraits":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-150x150.jpg",150,150,true],"medium":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"large":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"1536x1536":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"2048x2048":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"woocommerce_archive_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",300,200,false],"woocommerce_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"woocommerce_single":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-600x400.jpg",600,400,true],"woocommerce_gallery_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Himanshu sekhar","author_link":"https:\/\/simplemyfiling.com\/index.php\/author\/simplemyfilinggmail-com\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/simplemyfiling.com\/index.php\/category\/tax\/income-tax\/\" rel=\"category tag\">Income Tax<\/a>","rttpg_excerpt":"TAX LIABILITY OF A NON RESIDENT INDIAN (NRI) In India, an individual&#8217;s tax liability is contingent upon their residential status, which is categorized into three types under the Income Tax Act of 1961: Resident (ROR) Resident but Not Ordinarily Resident (RNOR) Non-Resident (NR) The term &#8220;Non-Resident Indian&#8221; (NRI) is not explicitly defined in the Income&hellip;","_links":{"self":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/comments?post=5935"}],"version-history":[{"count":4,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5935\/revisions"}],"predecessor-version":[{"id":5940,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5935\/revisions\/5940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media\/5764"}],"wp:attachment":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media?parent=5935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/categories?post=5935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/tags?post=5935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}