NRI Taxation – Income Tax of NRI in India

NRI Taxation

Tax is an amount of money paid to the government for the public expenditure. It is a mandatory duty of all the citizens of India to pay tax. People who avoid tax are committing a punishable offense. There are specific rules for NRI taxation also. There are different categories of taxation. Get the Income Tax eFiling information and know the  NRI Taxation details. The amount of tax is not the same for all.

The amount of tax depends on the amount one’s income. One has to disclose all one’s Income Tax to the Government so that the Government can calculate the proper tax. NRIs also have to pay tax to the government. As per the rules for NRI taxation, they only pay the tax based on the amount they are incoming in India. They don’t have to disclose the other source of income which they are earning in outside India. But if you are a resident of India and have the source of income from abroad, then you must disclose it.

The process of NRI Taxation

The process of taxation for the NRIs is a little complicated. You need to be aware of all the rules if you are an NRI. Usually, they do not have to file a return if there is no income from India, but if the income exceeds Rs. 250000 then NRIs must file an income tax return. Before paying the tax, you need to know how NRIs can file their India tax returns because there are so many frauds in the market.

Benefits of Taxation

If you pay the tax at the time, there are a few benefits which you can enjoy. Some of the benefits of filing the tax return in proper time include:

  • You can simply avoid the IT scrutiny. IT department can take legal steps against you if your amount of money exceeds 2 lakh during the monetization period.
  • By paying tax on time, you can avoid getting the tax notices from the Tax Department.
  • The documents you get after paying tax are a proof that you are making financial investments.
  • You will get the refund early if you ask for it.
  • NRIs can avoid legal harassments if they follow the proper rules of NRI taxation.

There are separate rules for the taxpaying for the NRIs. They can also apply for the individual tax rate. The interest amount of the bank account is also tax-free for NRIs. Different countries have different rules for the NRIs. The tax includes all the properties, income and even rental. If they wish, NRIs can ask for a certificate against the tax return file. The government of the particular country must issue the certificate. You need to follow the NRI Taxation procedure very carefully as there are many exceptions also.

If an NRI leaves India for working outside India then the salary he receives during his stay is taxable but the compensation income is tax-free. India also follows the same rule. The Department of Personnel Services controls all the exceptions related to paying the tax to the country. There is full guidance about how NRIs can file their India tax returns in the official page of the tax department.

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