We help NRIs, PIOs & OCIs.!!
We assist NRIs to File taxes in India

NRI Taxation Scene in India: India NRI Tax is targeted towards Non- resident Indians (NRIs) and is the tax taken out of their income. An NRI is an Indian or person of Indian origin who were born and raised outside of India, or have moved out of India and became a resident of another country. Yes it is easy with us to file sales tax, wealth tax and income tax even if you are living abroad.

"Please use the form on the right, to send us your TAX Questions"

NRI Taxation Scenario:

Studies, recently, have shown that there are millions of NRIs across the world. There is now an OCI issued by the government of India that is available to NRIs. This will insure that an NRI is a citizen of India along with the country he/she presides in. There is also a way to be considered a PIO (Person of Indian Origin). There are many privileges for NRIs given by the Indian government, but there are also hidden taxes given by the Income Tax Department.

Trading in India is doing very well and has made the economy grow very quickly. This is also making it easier for foreigners to trade in India and is opening many opportunities for NRIs.  However, when an NRI does get involved in the Indian markets, there are taxes for them as well. In the Income Tax Act, there are articles dedicated to NRIs. The tax for NRIs is dependent upon the income interest they have, then there is also a fixed tax rate on their gross earnings.

India NRI Taxing Rates:

These are some special regulations given by the Indian government just for NRIs. This is the India NRI Tax, and the income tax rate stays the same.

1.)  When a Foreign company gets a loan from the Indian government, it is mandatory for them for pay 20% interest rate on it.

2.)  When an NRI gets a loan from the Indian government or any other Indian company, it is mandatory for them for pay 20% interest rate on it as well.

3.)  If an NRI enters into a governmental bond, it is mandatory for them to pay 10% interest on it. These kinds of bonds are usually called Foreign Currency Convertible Bonds (FCC).

4.)  A foreign institution is required to pay 20% interest, on the profits made from any securities in an Indian stock exchange.

NRI Taxation FAQs:

There are a lot of NRIs that own assets in India. This creates a lot of confusion for them about taxes and a few other things. We took the things that we think would confuse NRIs and addressed them for NRIs to understand.
 

·     Filling out an Income Tax Clearance Certificate: If and Indian is going overseas for work, then they have to apply for this Income Tax Clearance Certificate. You will get this certificate from an assessing officer at the Income Tax Department. Other than this, you do not need anything else with the IT department before you work abroad.

·     NRI Income in India: All NRIs that have income earned in India will be taxed and should file for tax returns annually. For an NRI, it is not required to file for tax returns on investment gains if the tax was taken out for it at the beginning.

·     NRI Income Abroad: NRIs do not need to pay tax on income generated from abroad.

·     NRIs selling Stock Options: An NRI does not need to pay tax to India while he/she is selling their stock options. An Indian that has a resident status in India will need to pay taxes to India when doing the same.  

·     NRIs selling GDRs and ADRs: An NRI does not need to pay tax to India while he/she is selling GDRs and ADRs. An Indian that has a resident status in India will need to pay taxes to India when doing the same.  

·     NRIs investing in the Indian Stock Market: NRIs do have to pay tax to India when investing in the Indian Stock Market because the income made would take place in India.

·     NRIs bringing money to India: NRIs pay no taxes on the income that they generate from abroad.

·     No Double Taxation Agreement: When India does not have a double taxation agreement with the country that an NRI is located, then an NRI must provide proof that his income was taxes by that country to avoid further taxation by India.

·     NRIs consulting Indian companies: NRIs have to pay taxes on any income that they receive in India.

·     Income Earned abroad by a Resident Indian: Any Indian that is not identified as an NRI has to pay taxes. A resident Indian can apply for a 75 percent deducted off of their taxes. There are different rules depending on what kind of work a resident Indian is going abroad for.

·     A Resident Indian with Overseas Deputation: Again, the resident Indian would have to pay taxes because the money is being generated in India. With this, depending on the Indian’s job, he/she can apply for a deduction in the taxes.

·     NRI PAN Card: A NRI filing for their tax return or investing in India will need to have a PAN Card.

·     NRI returning to India: When an NRI returns to India after living abroad, he/she will not be taxed for the money that was made abroad for seven years after they have returned. If they have an NRE bank account, that is also free from tax.