8 Points about NRIs and Taxation
Being a mariner means staying out of India for long tenures. So that automatically grants you the status of an NRI. Here in this article, We would discuss the 10 critical points with regards to NRIs and Taxation in India.
- If you stay outside India for a period of 182 days or more in a financial year, you are termed as an NRI.
- NRIs are taxable for income earned in India, anything earned outside is not taxable in India.
- Any income earned from the money that was sent from abroad is taxable in India. So that means if he buys a plot with the income he earned from overseas, he could now be taxed on the income he earns from that plot.
- If an NRI is in India and he/she loses his NRI status, he will not be taxed on his overseas income if either of the two conditions are met:
- He has qualified as an NRI for the past 9 out of 10 financial years. OR
- He has been in India for not more than 729 days, during the last 7 financial years.
- NRIs can take benefit of Double Taxation Agreements that India has made with other countries, which entails them to have lower tax rates.
- Interest earned from NRE accounts is exempt from tax in India. However, the interest earned from NRO account is taxable.
- Wealth tax is not applicable to NRIs who have a property outside India.
- If an NRI has to perform any transaction like share trading, property buying etc., he needs to have a PAN card.
Read about RBI Guidelines for NRIs.
Hope these pointers would help you get a clearer idea regarding NRIs and taxation.