{"id":4027,"date":"2021-10-05T20:02:31","date_gmt":"2021-10-05T20:02:31","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4027"},"modified":"2026-02-15T17:09:11","modified_gmt":"2026-02-15T17:09:11","slug":"income-tax-deductions-to-nri-in-india","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/","title":{"rendered":"Income Tax Deductions to NRI in India"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4030\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/NRI..jpg\" alt=\"NRI.\" width=\"946\" height=\"432\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/NRI..jpg 626w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/NRI.-300x137.jpg 300w\" sizes=\"(max-width: 946px) 100vw, 946px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69da1a75c1363\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69da1a75c1363\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#Income_Tax_Deductions_to_NRI_in_India\" title=\"Income Tax Deductions to NRI in India\">Income Tax Deductions to NRI in India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#BRIEF_INTRODUCTION\" title=\"BRIEF INTRODUCTION\">BRIEF INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#NON-RESIDENT_INDIAN\" title=\"NON-RESIDENT INDIAN\">NON-RESIDENT INDIAN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#RESIDENTIAL_STATUS\" title=\"RESIDENTIAL STATUS\">RESIDENTIAL STATUS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#TYPES_OF_NON-RESIDENT_INDIANNRI\" title=\"TYPES OF NON-RESIDENT INDIAN(NRI)\">TYPES OF NON-RESIDENT INDIAN(NRI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#MEANING_OF_NON-RESIDENT_INDIANNRI\" title=\"MEANING OF NON-RESIDENT INDIAN(NRI)\">MEANING OF NON-RESIDENT INDIAN(NRI)<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#DEFINITION_UNDER_FEMA_ACT_1999\" title=\"DEFINITION UNDER FEMA ACT, 1999\">DEFINITION UNDER FEMA ACT, 1999<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#DEFINITION_UNDER_INCOME_TAX_ACT\" title=\"DEFINITION UNDER INCOME TAX ACT\">DEFINITION UNDER INCOME TAX ACT<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#DEEMED_RESIDENCY_PROVISION\" title=\"DEEMED RESIDENCY PROVISION\">DEEMED RESIDENCY PROVISION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#PAYMENT_OF_INCOME_TAX_BY_NON-RESIDENT_INDIANNRI\" title=\"PAYMENT OF INCOME TAX BY NON-RESIDENT INDIAN(NRI)\">PAYMENT OF INCOME TAX BY NON-RESIDENT INDIAN(NRI)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#INCOME_EARNED_OR_ACCRUED_IN_INDIA\" title=\"INCOME EARNED OR ACCRUED IN INDIA\">INCOME EARNED OR ACCRUED IN INDIA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#NON-RESIDENT_INDIANNRI_INCOME_TAXABLE_IN_INDIA\" title=\"NON-RESIDENT INDIAN(NRI) INCOME TAXABLE IN INDIA\">NON-RESIDENT INDIAN(NRI) INCOME TAXABLE IN INDIA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#An_NRI_like_resident_is_allowed\" title=\"An NRI, like resident is allowed\">An NRI, like resident is allowed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#Where_an_NRI_sell_a_capital_asset_being_a_house_property_then\" title=\"Where an NRI sell a capital asset, being a house property, then\">Where an NRI sell a capital asset, being a house property, then<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#SPECIFIC_PROVISIONS_WITH_INVESTMENT_INCOME_OF_NRI\" title=\"SPECIFIC PROVISIONS WITH\u00a0INVESTMENT INCOME OF NRI\">SPECIFIC PROVISIONS WITH\u00a0INVESTMENT INCOME OF NRI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#INVESTMENTS_ELIGIBLE_FOR_SPECIAL_TREATMENT\" title=\"INVESTMENTS ELIGIBLE FOR SPECIAL TREATMENT\">INVESTMENTS ELIGIBLE FOR SPECIAL TREATMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#SPECIAL_PROVISION_IN_RESPECT_OF_LONG-TERM_CAPITAL_GAINS\" title=\"SPECIAL PROVISION\u00a0IN RESPECT OF\u00a0LONG-TERM CAPITAL GAINS\">SPECIAL PROVISION\u00a0IN RESPECT OF\u00a0LONG-TERM CAPITAL GAINS<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#Income_Tax_Deductions_applicable_for_the_Financial_Year_2024-25\" title=\"Income Tax Deductions applicable for the Financial Year 2024-25\">Income Tax Deductions applicable for the Financial Year 2024-25<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#All_the_Important_Income_Tax_Applicable_Due_Dates_Limits\" title=\"All the Important Income Tax Applicable Due Dates &amp; Limits\">All the Important Income Tax Applicable Due Dates &amp; Limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/income-tax-deductions-to-nri-in-india\/#About_Rajput_Jain_and_Associates\" title=\"About Rajput Jain and Associates\u00a0\">About Rajput Jain and Associates\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Deductions_to_NRI_in_India\"><\/span><span style=\"color: #000080;\">Income Tax Deductions to NRI in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"BRIEF_INTRODUCTION\"><\/span><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>So as defined above, \u201ca non-resident could be a one who isn&#8217;t resident in India\u201d, therefore we need to know who shall be considered as Resident in India.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"NON-RESIDENT_INDIAN\"><\/span><span style=\"color: #000080;\">NON-RESIDENT INDIAN<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Where the NRI stayed in India for 182 days or more during the financial year; OR<\/li>\n<li>Where the NRI have got stayed in India for 60 days within the financial year and for in total of 365 days within the preceding 4 years.<\/li>\n<\/ul>\n<p>However, there are certain exceptions to the second condition &#8211;<\/p>\n<ul>\n<li>If you&#8217;re an Indian citizen who has left India within the yr as a crewman of an Indian ship or for the aspect of employment abroad; or<\/li>\n<li>If you&#8217;re a PIO or a citizen of India who comes on a visit to India;<\/li>\n<\/ul>\n<p>Then the second condition of 60 Days and\u00a0365 days\u00a0won&#8217;t\u00a0apply to you,\u00a0which suggests\u00a0that\u00a0within the\u00a0above situations\u00a0you may\u00a0be considered resident in India if and\u00a0only if\u00a0you were present in India\u00a0within the\u00a0relevant\u00a0year\u00a0for a period of 182 days or more.<br \/>\nTherefore,\u00a0you&#8217;re\u00a0a Non-Resident if\u00a0you do\u00a0not fulfil any of the above conditions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"RESIDENTIAL_STATUS\"><\/span><span style=\"color: #000080;\"><strong>RESIDENTIAL STATUS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4039\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Residential-Status-for-Income-Tax-\u2013-Individuals-Residents.png\" alt=\"Residential-Status-for-Income-Tax\" width=\"971\" height=\"728\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Residential-Status-for-Income-Tax-\u2013-Individuals-Residents.png 720w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Residential-Status-for-Income-Tax-\u2013-Individuals-Residents-300x225.png 300w\" sizes=\"(max-width: 971px) 100vw, 971px\" \/><\/p>\n<ul>\n<li>Residential status of an individual is set on the idea of the number of days a personal has physically stayed in India. Residential status has nothing to do with the nationality or domicile of a personal.<\/li>\n<li>It should also happen that an Indian, who is citizen of India, is also a non-resident for tax purposes during a particular year and an American citizen could also be resident in India for taxation purposes during a particular year.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"TYPES_OF_NON-RESIDENT_INDIANNRI\"><\/span><span style=\"color: #000080;\"><strong>TYPES OF NON-RESIDENT INDIAN(NRI)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under\u00a0income tax\u00a0Act 1961, non-resident is broadly classified under\u00a0the subsequent\u00a0three heads:<\/p>\n<ul>\n<li>Non-Resident Indian\/Person of Indian Origin<\/li>\n<li>Foreign Company<\/li>\n<li>Other Non-Resident Person<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\">SALIENT FEATURES<\/span><\/p>\n<ul>\n<li>Residential status is something, which is to be determined for every previous year. Residential status of assessment year\u00a0isn&#8217;t\u00a0relevant. Also,\u00a0you&#8217;ll\u00a0be a resident\u00a0during a\u00a0previous year and non-resident in another. Hence,\u00a0it&#8217;s\u00a0to be determined\u00a0for every\u00a0previous year.<\/li>\n<li>It is very much possible to possess dual residential status in a very previous year, i.e., you&#8217;ll be a resident in India within the previous year and also resident in another country tell us. it&#8217;s going to happen thanks to different set of rules laid down by countries for determination of Residential status.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"MEANING_OF_NON-RESIDENT_INDIANNRI\"><\/span><span style=\"color: #000080;\">MEANING OF <strong>NON-RESIDENT INDIAN(NRI)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u201cNon-Resident Indian (NRI)\u201d is\u00a0a personal\u00a0who\u00a0may be a\u00a0citizen of India or\u00a0an individual\u00a0of Indian origin and who\u00a0isn&#8217;t\u00a0a resident of India. In India Non-Resident Indian\u00a0is especially\u00a0governed by two Acts-<\/p>\n<ul>\n<li>Income Tax Act, 1961 &amp;<\/li>\n<li>Foreign Exchange and Management Act, 1999(FEMA).<\/li>\n<\/ul>\n<p>The term \u201cNon-Resident Indian\u201d is defined differently under both the Acts, however one\u00a0must\u00a0understand that for\u00a0the needs\u00a0of Income-tax, the FEMA Act holds no relevance and\u00a0you only\u00a0have to\u00a0confirm to\u00a0the provisions of\u00a0income tax\u00a0Act 1961.<br \/>\nPerson of Indian origin (PIO) \u2013 it is an individual who either himself, or any of his parents or any of his grandparents were born in undivided India.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"DEFINITION_UNDER_FEMA_ACT_1999\"><\/span><span style=\"color: #ff9900;\">DEFINITION UNDER FEMA ACT, 1999<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>FEMA, an acronym for\u00a0foreign exchange\u00a0Management Act, has its rule stating that if\u00a0an individual\u00a0stays\u00a0within the\u00a0country for a period\u00a0but\u00a0182 during\u00a0the continuing\u00a0fiscal year, then the same shall be regarded as an NRI. Typically,\u00a0yr\u00a0starts 1st of April and lasts till 31st March of\u00a0the subsequent\u00a0year.<\/p>\n<p>Additionally,\u00a0the subsequent\u00a0persons\u00a0are\u00a0included\u00a0within the\u00a0list of NRIs:<\/p>\n<ul>\n<li>People employed in organizations\u00a0and therefore the\u00a0ones carrying businesses overseas.<br \/>\n\u2022 People staying outside India\u00a0because of\u00a0some constraints for an unfixed period.<br \/>\n\u2022 Government servants deputed by the govt to be stationed overseas.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"DEFINITION_UNDER_INCOME_TAX_ACT\"><\/span><span style=\"color: #ff9900;\">DEFINITION UNDER INCOME TAX ACT<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Currently,\u00a0an individual\u00a0shall be considered\u00a0to be NRI under the IT Act if he or she fulfils\u00a0the subsequent\u00a0conditions.<\/p>\n<ul>\n<li>If the concerned person is absent for more than 182 days within the current yr.<\/li>\n<li>If the concerned person has not been present for a period of twelve months or more during four preceding financial years.<\/li>\n<\/ul>\n<p>NRI tax consultants\u00a0are available in\u00a0handy in cases like these.\u00a0they supply\u00a0services\u00a0within the\u00a0sector of advisory, consultation, analysing residential status, consultation on paying and filing IT returns, investment advice, checking eligibility for residency, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DEEMED_RESIDENCY_PROVISION\"><\/span><span style=\"color: #000080;\">DEEMED RESIDENCY PROVISION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-4035\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/residential-status...jpg\" alt=\"residential-status..\" width=\"996\" height=\"468\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/residential-status...jpg 996w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/residential-status..-300x141.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/residential-status..-768x361.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/residential-status..-800x376.jpg 800w\" sizes=\"(max-width: 996px) 100vw, 996px\" \/><\/p>\n<ul>\n<li>According to the finance bill of 2020,\u00a0an individual\u00a0is to be considered as a resident of India if that person\u00a0isn&#8217;t\u00a0being taxed in\u00a0the other\u00a0country.<\/li>\n<li>This bill has been introduced as a countermeasure\u00a0to prevent\u00a0the tax evaders. These people\u00a0last\u00a0and settle in countries that have little to no tax-paying requirements.\u00a0this protects\u00a0their money from tax-paying.<\/li>\n<li>Umpteen numbers of misinterpretations of this bill have surfaced, like someone working during a country like Dubai or Qatar if he\/she doesn&#8217;t pay tax in this country, then they have to pay tax in India. this can be completely baseless and wrong.<\/li>\n<li>In accordance with the new bill, an individual shall pay tax in India after settling outside if he\/she makes money from India itself.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"PAYMENT_OF_INCOME_TAX_BY_NON-RESIDENT_INDIANNRI\"><\/span><span style=\"color: #000080;\">PAYMENT OF INCOME TAX BY <strong>NON-RESIDENT INDIAN(NRI)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>After\u00a0you&#8217;ve got\u00a0determined your residential status,\u00a0the subsequent\u00a0step is\u00a0to spot\u00a0income taxable in India as per your residential status. Simply put,<\/p>\n<ul>\n<li>In case of Resident Individuals: The global income would be taxable in India i.e., the entire income earned by the said person would be taxable in India, whether in India or outside India.<\/li>\n<li>In case of Non-Resident Individuals: The income earned or accrued in India or which is deemed to accrue in India, shall be taxed in India. Therefore, your income from any country besides India isn&#8217;t taxable in India.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"INCOME_EARNED_OR_ACCRUED_IN_INDIA\"><\/span><span style=\"color: #000080;\">INCOME EARNED OR ACCRUED IN INDIA<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4041\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/1234.png\" alt=\"NRI Taxability \" width=\"967\" height=\"547\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/1234.png 550w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/1234-300x170.png 300w\" sizes=\"(max-width: 967px) 100vw, 967px\" \/><\/p>\n<p>India follows \u201csource rule\u201d basis of taxation, i.e., the entire income which accrue or arises in India shall be taxable in India. Hence, the identification of the source of Income becomes a matter of utmost importance. Where it has been determined that the income has its source in India, irrespective of whether direct or indirect, the said income shall be taxed in India. Some of these incomes are:<\/p>\n<ul>\n<li>Salary income received in India.<br \/>\n\u2022 Salary income received, in respect of services rendered in India.<br \/>\n\u2022 Rental income received, in respect of property situated in India.<br \/>\n\u2022 Capital gain arising in respect of transfer of property or asset situated in India.<br \/>\n\u2022 Any income from deposits in India\u00a0like\u00a0interest on fixed deposits<br \/>\n\u2022 Any interest received on savings checking account, etc.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"NON-RESIDENT_INDIANNRI_INCOME_TAXABLE_IN_INDIA\"><\/span><span style=\"color: #000080;\"><strong>NON-RESIDENT INDIAN(NRI) <\/strong><\/span><span style=\"color: #000080;\">INCOME TAXABLE IN INDIA<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>Income from Salary: Your salary income\u00a0is\u00a0taxed in India under two situations.<\/li>\n<\/ol>\n<ul>\n<li>Situation A: If\u00a0it&#8217;s\u00a0received in India- If\u00a0you&#8217;re\u00a0an NRI and\u00a0you have got\u00a0received any salary in India directly into an Indian Account or somebody else has received it in your behalf in India, then such salary income would become taxable in India.<\/li>\n<li>Situation B: If\u00a0it&#8217;s\u00a0earned in India- Your income\u00a0is claimed\u00a0to be earned in India if\u00a0it&#8217;s\u00a0earned for services rendered in India. Therefore, if\u00a0you&#8217;re\u00a0a NRI and your salary earned is for the services rendered in India, it shall be taxed in India.<br \/>\nYou will be taxed at the slab rate to which your income belongs to.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Income from House Property: Income arising from property located in India, whether in the form of rented or lying vacant and the same be taxed for an NRI. The calculation of such income shall be\u00a0within the\u00a0same manner as for a resident.<\/li>\n<\/ol>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-5975\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP-.jpg\" alt=\"Income from House Property\" width=\"1001\" height=\"1191\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP-.jpg 904w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP--252x300.jpg 252w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP--860x1024.jpg 860w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP--768x914.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/HP--800x952.jpg 800w\" sizes=\"(max-width: 1001px) 100vw, 1001px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"An_NRI_like_resident_is_allowed\"><\/span><span style=\"color: #000080;\"><strong>An NRI, like resident is allowed<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A standard deduction of 30%,<br \/>\n\u2022 To deduct property taxes,<br \/>\n\u2022 To take\u00a0advantage of\u00a0interest deduction if\u00a0there&#8217;s\u00a0an\u00a0equity credit line, and<br \/>\n\u2022 Claim the principal repayment of loan as deduction under section 80C. Also, tax and registration charges paid on purchase of a property can even be claimed u\/s 80C.<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">It is to be noted that, where the income is received in NRO account, whether or not received directly, the same would be susceptible to\u00a0tax in India\u00a0since the\u00a0source of income i.e., the property is situated in India.<\/p>\n<ol start=\"3\">\n<li>Income from Other Sources: Indian sourced income\u00a0within the\u00a0sort of\u00a0interest on fixed deposits and saving accounts is taxable in India. However, the amount received in NRE and FCNR account shall be tax free, whereas that received in NRO account would be subject to taxation in India.<\/li>\n<li>Capital Gains: Any\u00a0sought of capital gain\u00a0arising in relation to transfer of capital asset, being situated in India, shall be taxed in India. Also, the capital gains on investments made in India in the form shares, securities shall\u00a0be\u00a0taxable in India.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Where_an_NRI_sell_a_capital_asset_being_a_house_property_then\"><\/span><span style=\"color: #000080;\"><strong>Where an NRI sell a capital asset, being a house property, then<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>TDS be deducted @ 20%, in case of Long-term capital gains, or<\/li>\n<li>TDS be deducted @30%, in case of Short-term capital gains.<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">The buyer\u00a0whether or not\u00a0he&#8217;s\u00a0an individual\u00a0is\u00a0liable for\u00a0deducting tax at source and paying it to\u00a0the govt. Since the onus of deducting tax on payments made to NRI, lies on\u00a0the customer, and hence the same shall obtain a Tax Deduction\u00a0Account number (TAN) and issue a TDS certificate for\u00a0the same.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SPECIFIC_PROVISIONS_WITH_INVESTMENT_INCOME_OF_NRI\"><\/span><span style=\"color: #333399;\">SPECIFIC PROVISIONS WITH\u00a0INVESTMENT INCOME OF NRI<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4037\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Investment-Options-in-India-for-NRIs-v1.1-2.png\" alt=\"Investment-Options-in-India-for-NRIs\" width=\"962\" height=\"668\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Investment-Options-in-India-for-NRIs-v1.1-2.png 514w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Investment-Options-in-India-for-NRIs-v1.1-2-300x208.png 300w\" sizes=\"(max-width: 962px) 100vw, 962px\" \/><\/p>\n<p>As a NRI you&#8217;ll be able to avail of a special provision associated with investment income. A NRI income shall be taxed @ 20%, where he invests in certain assets in India.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"INVESTMENTS_ELIGIBLE_FOR_SPECIAL_TREATMENT\"><\/span><span style=\"color: #333399;\">INVESTMENTS ELIGIBLE FOR SPECIAL TREATMENT<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The income derived from\u00a0the subsequent\u00a0assets in India acquired in foreign currency shall qualify for special treatment:<\/p>\n<ul>\n<li>Investment in the shares of Indian Companies (Public or Private company)<br \/>\n\u2022 Investment in the debentures, being issued by a publicly-listed Indian company.<br \/>\n\u2022 Deposits made with the banks and public companies.<br \/>\n\u2022 Any security of the Central Government<\/li>\n<\/ul>\n<p>No deduction under Section 80 is going to be allowed while calculating investment income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"SPECIAL_PROVISION_IN_RESPECT_OF_LONG-TERM_CAPITAL_GAINS\"><\/span><span style=\"color: #333399;\">SPECIAL PROVISION\u00a0IN RESPECT OF\u00a0LONG-TERM CAPITAL GAINS<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On long term capital gain arising from the transfer or sale of those assets, no advantage of indexation and deduction under Section 80 is allowed. But you&#8217;ll be able to still save your taxes, by availing exemption on the gains earned under Section 115F. Under this, you&#8217;re required to reinvest the web consideration received within the amount of six months from the date of sale of the first asset, into the subsequent assets:<\/p>\n<ul>\n<li>Shares in an Indian company<br \/>\n\u2022 Debentures of an Indian public company<br \/>\n\u2022 Deposits with banks and Indian public companies<br \/>\n\u2022 Central Government securities<br \/>\n\u2022 NSC VI and VII issues<\/li>\n<\/ul>\n<p>The entire capital gain would be exempt if the entire of the net consideration is re-invested. However, if the price of recent asset purchased, falls short than the consideration, then the capital gain would be exempt proportionately, i.e.,<\/p>\n<p><strong>Total Capital Gain \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost of New Asset<\/strong><\/p>\n<p><strong>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8211;<\/strong><\/p>\n<p><strong>Total net consideration<\/strong><\/p>\n<p>Exemption=<\/p>\n<p>NOTE: The exemption\u00a0is\u00a0withdrawn if the new asset purchased is transferred or converted into money within a period\u00a0of three\u00a0years from the date of purchase. The NRI is eligible to withdraw the amount from the special provision, at any point of time and in such an event, the investment income and LTCG\u00a0shall be\u00a0charged to tax as per the standard\u00a0provisions of Income Tax\u00a0Act, 1962.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Income_Tax_Deductions_applicable_for_the_Financial_Year_2024-25\"><\/span><span style=\"color: #000080;\"><strong><a style=\"color: #000080;\" href=\"https:\/\/carajput.com\/publications\/income-tax-deductions-applicable-for-the-financial-year-2024-25.pdf\">Income Tax Deductions applicable for the Financial Year 2024-25<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"All_the_Important_Income_Tax_Applicable_Due_Dates_Limits\"><\/span><a href=\"https:\/\/carajput.com\/publications\/latest-direct-tax-income-tax-slab-and-income-tax-rates-in-india.pdf\"><span style=\"color: #000080;\"><strong>All the Important Income Tax Applicable Due Dates &amp; Limits<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6398\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001..jpg\" alt=\"All the Important Due Dates and Limits applicable\" width=\"2481\" height=\"1712\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001..jpg 2481w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-300x207.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-1024x707.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-768x530.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-1536x1060.jpg 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-2048x1413.jpg 2048w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0001.-800x552.jpg 800w\" sizes=\"(max-width: 2481px) 100vw, 2481px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6400\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002..jpg\" alt=\"All the Important Due Dates and Limits applicable\" width=\"2481\" height=\"1711\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002..jpg 2481w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-300x207.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-1024x706.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-768x530.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-1536x1059.jpg 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-2048x1412.jpg 2048w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2021\/10\/Compiled-All-the-Important-Due-Dates-and-Limits-applicable_page-0002.-800x552.jpg 800w\" sizes=\"(max-width: 2481px) 100vw, 2481px\" \/><\/p>\n<h2 data-start=\"136\" data-end=\"442\"><span class=\"ez-toc-section\" id=\"About_Rajput_Jain_and_Associates\"><\/span><span style=\"color: #000080;\"><strong>About Rajput Jain and Associates\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"136\" data-end=\"442\">For expert tax advisory and compliance support, businesses can rely on Rajput Jain and Associates, a trusted tax consultant for small and medium businesses. The firm provides strategic tax planning tips for businesses to help optimize financial efficiency and ensure full regulatory compliance.<\/p>\n<p data-start=\"444\" data-end=\"804\">With specialized expertise in GST tax planning for businesses, Rajput Jain and Associates assists clients in minimizing tax liabilities while maintaining seamless compliance with evolving GST laws. Their team offers affordable tax filing services for small businesses, ensuring accurate return filing, timely submissions, and reduced risk of penalties.<\/p>\n<p data-start=\"806\" data-end=\"1177\">Through proactive advisory and structured planning, the firm focuses on delivering practical tax savings for small businesses, helping entrepreneurs retain more profits and strengthen long-term financial stability. Their approach combines compliance, planning, and advisory to maximize overall tax savings for small businesses while supporting sustainable growth. Contrat us at Singh@carajput.com or 9555 555 480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Income Tax Deductions to NRI in India BRIEF INTRODUCTION So as defined above, \u201ca non-resident could be a one who isn&#8217;t resident in India\u201d, therefore we need to know who shall be considered as Resident in India. NON-RESIDENT INDIAN Where the NRI stayed in India for 182 days or more during the financial year; OR &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[623],"tags":[549],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4027"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4027"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4027\/revisions"}],"predecessor-version":[{"id":10091,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4027\/revisions\/10091"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}