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  Tax Planning

 
home > Tax Planning > NRI Corner > NRI Introduction
logo   NRI INTRODUCTION
   
  I. Who is a non-resident ?
  Under the IT Act, a person is a non-resident in India in any previous year, if he satisfies the following conditions:
 
  • If he was in India for a period of less than 182 days during the previous year; and
  • If he was in India for a period less than 365 days during the preceding four years and for less than 60 days during the previous year.
  An individual who is a citizen of India or a person of Indian origin, and a 'non-resident' (according to the above definition), is called a 'Non-Resident Indian' (NRI).
   
  II. Scope of taxability of income in case of NRI:
 
Nature of income Whether tax incidence arises or not
Income received in India, whether accrued in India or outside India Yes
Income deemed to be received in India, whether accrued in India or outside India Yes
Income accrued or deemed to accrue in India, whether received in India or not Yes
Income arising or deemed to be arising in India, whether received in India or not Yes
Income received or accrued outside India, from a business controlled from India or profession set up in India No
Income received or accrued outside India, from a business controlled outside India or profession set up outside India No
   
  Remittance or Transmission of Money to India is not an Income Received in India
  It is significant to note that income received in first instance outside India and subsequently remitted or otherwise transferred to India is not to be treated as 'income received in India'.
   
  III. Income-tax Liability of a Non-resident
  A non-resident Indian having (Indian) income of more than basic exemption limit (i.e. Rs.1,00,000 in case of male assessees, Rs.1,35,000 in case of female assessees and Rs.1,85,000 in case of senior citizens) except income from certain specified assets, is liable to pay income-tax at the same rates as are applicable in case of resident assessees.
 
 (Click here for tax rates) 
   
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