Overview
The contributions of Indian citizens living abroad to the Indian economy are substantial. The average annual outflow of Indian nationals to other countries is in the tens of thousands. Income made by non-resident Indians might be invested, saved, or transferred to the bank accounts of relatives residing in India. To get the best corporate tax advisory for NRI, avail of them at PKC India.
The amount of money sent back to India by Indians living abroad is one way the World Bank evaluates the country’s fiscal health. The Indian economy benefits significantly from the remittances of non-resident aliens.
PKC Tax Advisory for NRI
Despite many experts praising the contributions of non-resident Indians to the development of the Indian economy through currency markets, the general public outside of India is unaware of this phenomenon. Many people who have moved out of India don’t understand the tax ramifications of their property earnings or the restrictions for remitting money back to the country. In order to get a proper idea of how the corporate tax system works in India, contact PKC India for the best corporate tax advisory for NRI.
Investment property, rental income, passive business revenue generated in India, capital gain from the sale of property, dividend income from stocks or return on mutual funds held in India, etc., are all potential sources of income for a non-resident Indian. All of the following are examples of the types of money that a non-resident Indian may make in India via remittances to the country, whether they be from a wage, a company, or some other source.
Any revenues mentioned earlier that seem to accrue or originate in India would subject a non-resident Indian to Indian taxation. Even though a non-resident Indian’s worldwide income may not be taxable, a non-resident Indian is nevertheless required to report and pay taxes on any income earned from real or personal property or securities inside India. Yet, in such situations, a check on taxability is quite rudimentary. A lot of headaches may be avoided if you consult the best corporate tax advisory for NRI – PKC India.
Secondment of Service
01
02
03
04
05
DTAA Applicability
The assessee must check the DTAA(Double Taxation Avoidance Agreement) regulations of the country in which they are a resident before submitting the income tax return in India since India has entered into DTAAs with numerous nations. Because navigating DTAA may be difficult for the average person, we can help by preparing your tax return to meet all of the requirements and easing the burden of this process.
Frequently Asked Questions
Someone with a passport from a country other than Pakistan or Bangladesh may apply for and get an Overseas Citizen of India card. Any visitor to India who has an OCI card may enter the country without a visa sticker in their passport. To join or leave India, they must have valid foreign access and an OCI card.
The card grants the bearer several entry privileges to India for the rest of their lives. They need not register as foreign nationals to extend their stay in India.
Those of Indian ancestry who now reside outside India are classified either as Non-Resident Indians (NRIs) or as Overseas Citizens of India (OCI). In the past, a separate classification for those of Indian ancestry was recognised called Person of Indian Origin (PIO); however, this was combined with the OCI rules in 2015.
Whether you are an overseas Indian or a non-resident Indian, we are here to help you get familiar with the information you need.
If you are considered a “resident,” all of your worldwide earnings are subject to taxation in India. However, if you are considered a “non-resident Indian,” only your domestic earnings are subject to taxation. A non-resident of India is exempt from paying tax on any income obtained outside India.
In the case of interest earned on NRE and FCNR, accounts of an NRI are tax-free, and a draw on an NRO account is taxable for an NRI. The payee has to deduct tax at source under section 195 before making any payment to the non-resident Indian.
The general public usually agrees that an Indian citizen who does not permanently dwell in India is a “non-resident Indian.” A person’s resident status, rather than citizenship, determines his taxable income.
Any Indian citizen who does not meet the following criteria is considered a non-resident Indian under the Income Tax Act of 1961.
If he has not spent the prior year in India for at least 182 days, OR if he has spent the previous year in India for at least 60 days, AND he has spent at least 365 days in India throughout the four years before the prior year.
