NRI or not, every individual must file the tax return if their income exceeds the tax limit set by the Income Tax Department.
A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education or any other purpose. NRI or not, every individual must file the tax return if their income exceeds the tax limit set by the Income Tax Department.
The IT department consider an individual to be a NRI; If he is in India for a period of 182 days or more during the previous year; or if he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.
The earnings made abroad do not come under the Indian Tax Acts. If any income arise from within India an NRI is liable to pay taxes for that income.
Salary
Being an NRI, you are liable to pay taxes on the income you have earned in India.
Your salary income is taxable when you are an NRI and receive the salary in India or someone does on your behalf. However,Salary of Diplomats,ambassadors is not taxable. If you are an Indian Government employee and a citizen of India and you render service outside India, the salary you receive in such a case shall be taxable in India.
Income from properties
There is no dearth of people looking for a place to live, the rental home is the most common source of income of NRIs in India. A large number of NRIs rent out their properties in India and receive income. This kind of incomes arises from a property in India,is taxable in the hands of NRI. The tenant who pays rent to an NRI house owner should deduct TDS (Tax deducted at source) at 30%.
Income from business
If you are an NRI and earn income from the business that is located and controlled in India, it is taxable. Any income from a profession set up in India where services are provided in India or income accrues in India,the same shall be taxable in India.
Capital gain
Any Capital gain on transfer of capital asset situated in India is taxable.That is,income from transfer of assets,shares,short term and long term investments in India shall be taxable.
If an NRI invests in certain specified investments in India like central Government Securities, Shares in Indian companies, Debentures by public listed companies, Deposits with banks and public companies etc., he shall be taxed at 20%.
Income from other sources
Interest income earned from fixed deposits and savings accounts in Indian banks shall be taxable in India. However ,interest earned in NRE Account and FCNR account (Foreign Currency Non Resident Account) is tax-free. But,interest earned in your NRO account shall be taxable. Read Also: Difference Between A NRE And NRO Account
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