Income Tax Rules for Non-Resident Indians (NRI’s)

Finally you have made your mind to come back to India! What are your intentions now? Are you eager to permanently stay and start searching for your working options or you are having some other intentions? What ever may be the reason, you must have a look at the Income Tax rules governing NRIs in India.

NRI Income in India

All income earned by NRIs in India is taxable. In addition, the NRIs are required to file the returns on an annual basis. Also, salary earned in India is chargeable to tax (under Section 9 (I) (ii) of the IT Act.) You are liable to pay tax if you have earned the income in India (directly or indirectly) and/or the same is amassed in India.

In the following cases you must pay the income tax:

  • If you have a business income, property income or/and income from another source.
  • Dividend paid by an Indian company to an NRI living abroad.
  • If you are receiving an interest paid by government, bank, company or any other source.
  • Fees paid for technical services provided by an NRI.
  • Salary earned in India or salary paid by the Indian government to any citizen of India for
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    services provided abroad.

NRI Income Abroad

Non-resident Indians are exempt from paying taxes on their foreign income and they are not required to pay the tax if the income is earned elsewhere.

Apart from these rules, it is mandatory for the applicants to file their returns on time to avoid any hassles or penalties in future. If possible, try to learn more about the tax saving

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schemes available to you and ensure that you have the required documentation. These may include the proof of your paid tax in your original country to avoid any issue of Double Taxation.

These matters require a high level of scrutiny! Take every step with utmost care…

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  • Kumar

    Dear sir,
    After retirement in India,I have taken up a consultancy project for a German firm,for a project in Nepal .I have registered with Indian embassy as a NRI.
    My receivables are in US$ at the end of every month.
    Can I receive my income in $ currency into an acct in India while working in Nepal and if so,What will be the implication of tax in India.
    Please advise as to options for me and nature of acct I should open in India.
    Thanks and regards


    I am nri and planning to do some investmet in bank deposit not big amount up RS 10 LAKH over a period of i was told that interest wil be paid after deducting the income tax approx 33.3% is there any minimum amt which is not taxable pl advice

  • rakshita

    I am planning to move to Singapore to take up a job. I have worked for half financial year in India and some of these payments will come to me only after I have left the country.
    I am concerned on what rules apply in the 1st year when you move out of India as I don’t want to upset any of my existing financial assets/paperwork before i get settled in Singapore.

  • Best you consult a Indian taxation consultant/lawyer for advise on this matter

  • kamlesh

    i have income in uae for 2007 –2008 2009 –but not files return can –i filled return now for 2007 –08 09 ?? for that year ??

  • Contact a Local tax specialist please

  • caganeshrana

    I am indian citizen doing service in nepal.I have salary income and tuition fee income there. What compliance should be made by me in India and nepal inrespect to filing Return of Income.

  • I guess you mean you are a lawyer; this occupation does not figure in permitted occupations lists of majority of countries where skilled migration is open. But still send us your detailed profile and we shall assess it as per applicable selection criteria

  • raj

    respected sir
    I am Income tax layer in India, can I aply PR.

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