Non Resident Center

NRI Taxation
  1. Who is an NRI?
      Basic Conditions for a Resident Indian
    1. In India for 182 days or more during previous year or
    2. In India for 60 days or more during previous and 365 days or more during the last 4 year prior to the previous year

      Additional Conditions

    3. Resident in India in atleast 9 out of 10 presvious years prior to the previous year AND
    4. In India for 730 days or more during 7 years prior to the previous year
    So select yourself: Resident = Satisfy 1 or 2 and 3 & 4 Resident but Not ordinary Resident = Satisfy 1 or 2 but non of 3 & 4 Non Resident = Satisfy non of 1 and 2 (Remember definition of Non Resident under FERA and Income Tax is different)
  2. Taxability of Income
    Resident but Not ordinary Resident : Taxable only if income earned in India or income arising out of India ,from business or profession controlled or setup in India. Non Resident Indian: Income earned in India is taxable
  3. Exempt Income
    • Interest on notified securities or bonds and premium on redemption of such securities
    • Interest on NRE/FCNR Accounts
    • Interest on notified savings certificates subscribed in foreign currency by an Indian citizen/person of Indian origin
    • Income from Units of UTI acquired in foreign exchange by Indian citizen/person of Indian origin
    • Interest on NRNR deposits and other securities ,bonds, saving certificates notified U/S 10(15)(i)
    • Interest from NRI Bonds 1998 and NRI Bonds (Second Series) issued by SBI purchased in foreign exchange ,exemption continues even after person becomes rsident
    • Interest paid by Scheduled banks on RBI approved foreign currency deposits,FCONR , RFC A/C to a Non Resident or Non Ordinary Residents
  4. Taxation of Expatriates
    • If a person is a technician and comes to India for carrying on any scientific research and he was not a resident in India for any of the four preceding financial years then there is no grossing up for the first 48 months when he comes to India.
    • Foreign citizen employed in India get free passage money for him self,spouce and children for home leave oit of India is tax exempt.
    • If a foreign citizen is receiving remuneration and is in India for less than 90 days; employed is not claiming this as a deduction , then it is not taxable in India.
    • Non citizen professor or teacher of a University who come to India to teach has not to pay any tax in India for 36 months and there after for 24 months he may be paid salary net of tax.
    • There are many such provisions for Expatriates , for further information email us.


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