.jpg)
It is imperative for an individual to determine his/her residential status to determine the taxability of income earned by such taxpayer. An individual is a resident of India (for tax purposes or otherwise) if:
If an Indian citizen leaves India in any year for the purpose of employment, or as a member of a crew of an Indian merchant ship, the period of '60 days' is to be replaced by '182 days.' Similarly, when an Indian citizen or a person of Indian Origin (PIO) who is abroad and comes to visit India, the period of '60 days' is to be replaced by 182 days. If you satisfy any of the two conditions, you are a Resident Indian. Else, you are deemed a Non-Resident Indian (NRI).
If you reside and work abroad, the NRI income tax you pay will depend on your residential status for the year. If you fit the Resident Indian criteria, your total global income is taxable under Indian tax laws. But if your status for the year is 'NRI', only the income earned or accrued in India is taxable.
The NRI income tax is levied on the following:
NRIs can avail of the tax deductions under Section 80C. Currently, a maximum deduction of up to Rs 1.5 lakh is permissible for tax deductions under the said section in Life Insurance Premium payment, Repayment of Principal on Loan for the Purchase of Property or Investment in Equity-Linked Savings Scheme (ELSS), etc. An NRI can also claim a deduction on premium paid for Health Insurance under Section 80D of the Income Tax Act, 1961 but it is available for premiums paid up to Rs 25,000 on insurance paid for self, spouse and dependent children. In case of senior citizens, this amount increases to Rs 50,000.
The information provided in this article is for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to visit https://www.incometaxindia.gov.in for more information on the taxation norms for an NRI or contact a tax consultant for specific professional advice pertaining to your situation or query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
2024 NRI Club™ © All Rights Reserved.