DETERMINATION OF NRI STATUS
When a assessee is not meeting the following conditions then he is considered as NRI:
1. When assessee is in India for 182 days during previous financial year.
OR
2. When assessee is in India for last 2 months in previous financial year and has stayed for 1 year in last four years.
The above conditions do not apply to Indian citizen working outside India or a member of crew of Indian Ship.
COMPUTATION OF INCOME
Computation of Total Income of Mr. X
1. Income From Salary | xxxx |
2. Income From House Property | xxxx |
3. Income From Profits or Gains | |
From Business or Profession | xxxx |
4. Income From Other sources | xxxx |
5. Income From Capital Gain | xxxx |
6. Gross Total Income[1+2+3+4+5] | xxxx |
7. Less: Deduction Under Chapter VIA | xxxx
|
Total Income [6-7] | xxxx |
Sources Of Income
File ITR 1 For NRIs having Income From Salary
Documents For Filing ITR 1
1. PAN Card
2. Form 16 Received By Employer
3. Bank Account Details [Copy Of Cancelled Cheque]
4. User ID and Password of Income Tax Website [www.incometaxindiaefiling.gov.in]. You don’t have it? Don’t worry we’ll assist you for same.
INCOME FROM BUSINESS OR PROFESSION
Profit or gains earned by NRI shall be taxable in India and tax slab rates are applicable on the same income.
INCOME FROM HOUSE PROPERTY
Income from house property arises when property of NRI is situated in India. In general parity house property arises in the following two cases
A deduction of 30% is allowed along with benefit of housing loan and property tax is given from the income of house property.
INCOME FROM OTHER SOURCES
Interest Income of NRI from saving bank interest, fixed deposits, time deposits earned from bank accounts maintained in India are taxable.
Please note interest on NRE account is tax-free but interest on NRO account is fully taxable.
INCOME FROM CAPITAL GAIN
Where a capital asset [house property, shares, investments, debentures, etc.] is held by NRI in India shall be taxable in India.
However, following assets are not included in the income of a NRI under capital gains:
1. Shares held by NRI in a public or private company in India.
2. Debentures issued by public and listed company.
3. Securities issued by Central Government.
4. Deposits with banks and public companies.
5. Other assets notified in official gazette.
For the above assets, tax rate shall be 20%.
DEDUCTIONS AND EXEMPTION FROM GROSS TOTAL INCOME OF NRI
SECTION 80C
Maximum deduction of Rs. 1,50,000 is allowed on Gross Total Income. Deduction is like benefit given in Indian Tax Laws which will reduce the burden of tax. Invest in following assets/securities to claim benefit under this section:
1. Principal repayment of housing loan
2. Tuition Fees of maximum two children
3. Premium on Life Insurance Policies
4. Investment in ELSS
5. Term deposit of not less than five years.
Deduction in respect of health/medical premium paid. Maximum deduction allowed is Rs. 25,000 in case of self, spouse and children (dependent) and Rs. 30,000 in case of senior citizen.
Additional benefit of Rs. 5,000 shall be given if amount is paid towards preventive health scheme. Rs. 5,000 is extra benefit in addition to Rs. 25,000 and 30,000 as the case may be.
SECTION 80E
This section is dedicated to provide deduction where NRI has taken education loan. The deduction allowed shall be the interest paid on education loan taken and the deduction shall be allowed for maximum of 8 financial years.
SECTION 80TTA
The relief of this section is also extended to NRI’s where a total deduction of Rs. 10,000 is allowed on the interest earned from saving bank accounts maintained by NRI.
SECTION 80G
Deduction under this section is allowed when NRI has given donations to various funds. It is advised to keep in record receipt of donations.
AN NRI HAS BEEN SOLD HIS RESIDENTIAL HOUSE AND CAPITAL GAIN, ARRISE. HE HAS ONLY CAPITAL GAIN INCOME. I WANT TO KNOW THAT NRI CAN BE BENEFIT OF BASIC EXEMPTION OF Rs. 250000/- AND LIC PREMIUM BENEFIT ON HIS OWN LIFE ?
Having inerest income on fixed deposits to the extent of Rs 400000/- and no other income. What is the tax liability
Hello Sir.
i am PSU government employees posted myanmar for foreign project, i am receiving my salary in india in NRE account and i claim NRI Status for FY2018-19, company deducting and depositing my EPF to department. Can i claim EPF as NRI under 80C
WHAT IS THE STANDARD DEDUCTION FOR NRI IN A.Y.2019-2020
CAN I CLAIM INTEREST REBATE OF 50000 AS SENIOR CITIZEN IN A.Y.2019-2020. US 80C CAN I INVEST IN ELL RELIANCE AS NRI FOR A.Y.2019-2020
Consultation fees earned & received outside India by NRI, but same amount has been Remitted to India to there parents but this is exempted under which section & under which head??
Hello,
I am an NRI. My Income in India does not exceed INR 2.50 lacs in last F Y. Do I have to file the IT returns. Please guide. Thanks.
Thanks for this important update. Please guide me if NRI has short term capital gain income in india in FY 2017-18 and TDS has been deducted on that gain, then whether NRI can get refund this TDS or not. What ITR should he filed in that case for AY 2018-19
Sir please share the type of asset.
There are some specified assets on which if TDs is deducted then filing of itr is not mandatory.
My client (NRI) has short term capital gain on transfer of Equity shares in india in indian currency. STT has been deducted on that STCG. He has other interest income in his NRO account after deducting TDS on interest.