Income Tax for NRI

Non-resident Indians (NRIs) are Indian citizens who reside abroad for employment, business, or vocation for a period of 182 days or more in a financial year. NRIs are subject to Indian income tax on their income earned or accrued in India, as well as any income brought into India. They are also eligible for the same tax exemptions and deductions as resident Indians. The tax treaty between India and the NRI's country of residence may also impact the NRI's tax liability in India. NRIs can access their tax information and file tax returns in India through the e-filing portal of the Income Tax Department or by appointing a tax representative in India. It is important for NRIs to stay compliant with their tax obligations in India to avoid penalties and interest.

Do NRIs have to pay advance tax?

Yes, NRIs are required to pay advance tax if they have taxable income in India. Advance tax is a system of paying tax in installments throughout the year, instead of paying the entire tax liability at the time of filing tax returns. This is applicable to both resident and non-resident taxpayers.

NRIs are required to pay advance tax if their taxable income in India exceeds the basic exemption limit for the financial year. The due dates for payment of advance tax are June 15th, September 15th, December 15th, and March 15th. If the NRI does not pay advance tax as required, they may be subject to interest and penalties.

It is important for NRIs to stay informed about their tax obligations in India and to make payments as required to avoid interest and penalties. NRIs can seek the guidance of a tax professional or accountant if they have any questions about their tax obligations.

Taxable income for an NRI

For an NRI, taxable income in India includes:

1. Income from salaries: Any salary income earned in India by an NRI, such as from employment or from serving as a director on a company's board, is taxable in India.

2. Valuation of Stock Transfers under GST