"Tax Guide for NRIs: Rules, Reliefs & Requirements"

The article outlines key tax requirements for Non-Resident Indians (NRIs), including residential status determination, taxable income in India, filing tax returns, and foreign asset disclosure. It also covers DTAA benefits, TDS provisions, bank accounts, remittance forms, advance tax, and proper documentation for compliance.


Requirement Description
Residential Status
Determine residential status as per Indian Income Tax Act. NRIs are individuals who do not meet the criteria of "resident" for the relevant financial year.
Taxable Income in India
NRIs are taxed on income accrued or received in India. Overseas income is usually not taxable in India unless it is received or accrued in India.
Filing Income Tax Returns
NRIs must file an income tax return in India if their taxable income in India exceeds the threshold limit for that financial year.
Foreign Assets Disclosure
NRIs need to disclose foreign assets and income in their Indian tax returns if they are deemed residents under tax laws in India for the financial year.
Double Taxation Avoidance Agreement (DTAA)
NRIs can claim tax relief under DTAA to avoid double taxation on income earned overseas. They must provide relevant documentation, such as a Tax Residency Certificate (TRC).
Tax Deducted at Source (TDS)
Income earned in India by NRIs is subject to TDS as per applicable tax rates. NRIs may claim a refund if excess TDS is deducted.
Bank Accounts
NRIs should maintain NRO, NRE, or FCNR accounts for handling income in India and remittances to/from overseas.
Form 15CA and Form 15CB
NRIs are required to submit Form 15CA and Form 15CB for remittances involving taxable income to ensure compliance with withholding tax provisions.
Advance Tax
NRIs earning income in India, such as rental or business income, may need to pay advance tax if the tax liability exceeds Rs. 10,000.
Documentation
NRIs must maintain proper documentation like tax returns, proofs of income, DTAA certificates, and other relevant records for compliance and audits.


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