"Tax-Free Tips for NRIs: Maximize Your Benefits!"

The article outlines tax benefits available to NRIs for various accounts and investments, highlighting tax-free interest on NRE and FCNR accounts, taxable interest on NRO accounts, and DTAA advantages. It also covers taxation on mutual funds and property income, emphasizing exemptions and strategies to minimize tax liabilities.


Below is a table showcasing the tax benefits available to NRIs under various schemes like NRO and NRE accounts:
Account Type Tax Benefits Additional Notes
NRE Account (Non-Resident External) Interest earned on NRE accounts is completely tax-free in India. Funds deposited in NRE accounts must be earned abroad. Principal is also tax-free.
NRO Account (Non-Resident Ordinary) Interest earned is taxable at a flat rate of 30% (plus applicable surcharge and cess). Tax can be reduced by claiming benefits under Double Taxation Avoidance Agreement (DTAA) if applicable.
FCNR Account (Foreign Currency Non-Resident) Interest earned is tax-free in India. Account is maintained in foreign currency, so it is immune to exchange rate risks.
Investment in Indian Mutual Funds Taxation on gains depends on the type of mutual fund and holding period, with long-term capital gains taxed at concessional rates. NRIs can avail DTAA benefits for reduced taxation.
Income from Property in India Rental income is taxable as per slab rates. Capital gains on property sales are taxed at 20% for long-term gains. NRIs can claim exemptions under Section 54 and Section 54EC on reinvestment of gains.


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