Rules for filing income taxes broadly same for NRIs and residents
6 years, 5 months ago

Rules for filing income taxes broadly same for NRIs and residents

Live Mint  

I am based in Kenya and am selling a house in Hyderabad, which I had bought in 2007. However, NRIs can also claim exemption on the capital gains, by purchasing another property in India, or by investing the gains in capital gains bonds. In case you are not able to conclude the purchase of a house property, you may park the capital gains in a Capital Gains Account Scheme with a bank and then later invest them. To ensure that the buyer is deducting taxes on the gains only, you could approach your income tax officer to determine the value of capital gains and furnish the same to the buyer to avoid excessive deduction of tax in India. I understand future income and capital gains of the trust are taxable on passthrough basis.

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How are non-residents taxed on profits on the sale of real estate?
1 month ago

How are non-residents taxed on profits on the sale of real estate?

Live Mint  

After acquiring two residential properties, an NRI inquires about capital gains tax and remittance options. {{^adFree}} {{/adFree}} Profits on the sale or transfer of land and buildings, whether residential or commercial, are treated as long-term capital gains if sold after 24 months. The long-term capital gains are taxed at a flat rate of 12.50% without any indexation benefits, as the …

NRI Taxation Explained: How India taxes non-resident Indians
1 month, 2 weeks ago

NRI Taxation Explained: How India taxes non-resident Indians

Live Mint  

An Indian-origin individual living outside India is termed a Non-Resident Indian. Regulations defining NRI status Two primary legislations outline the rules applicable to NRIs in India: Income Tax Act, 1961: Specifies the tax obligations of NRIs. You will be classified as resident but not ordinarily resident for a particular year if you satisfy one of the following conditions: If he/she …

Tax breaks, reforms, and returns: Why NRIs are banking big on India
1 month, 3 weeks ago

Tax breaks, reforms, and returns: Why NRIs are banking big on India

Live Mint  

India is cementing its reputation as a prime destination for global investors, with inflows into NRI deposit schemes surging to $7.8 billion between April and August this year—more than double the figure from the same period last year. By refining tax rules, increasing transparency, and aligning with global trends, the reforms position India as an attractive and efficient investment destination …

How is TDS calculated while buying property from an NRI?
2 months, 1 week ago

How is TDS calculated while buying property from an NRI?

India TV News  

Prices of the immovable properties are always soaring in India which makes it an investment. TDS on immovable NRI properties After July 23, 2024, if a person purchases any immovable property from an NRI, he must pay the following tax: Property held for 2 or more years: If a property is held by an NRI for more than 2 years, …

What’s the TDS when buying property from an NRI?
2 months, 1 week ago

What’s the TDS when buying property from an NRI?

Live Mint  

What is the TDS rate for purchasing property from an NRI after 23 July 2024? -Name withheld on request If you purchase immovable property from a non-resident Indian after 23 July 2024, the applicable TDS rate depends on the duration the seller held the property: For property held more than 2 years: TDS is deducted at 12.5%. Read this | …

Tax FAQs for NRIs: Schedule AL, India-Germany DTAA decoded
6 months, 1 week ago

Tax FAQs for NRIs: Schedule AL, India-Germany DTAA decoded

Live Mint  

As a non-resident Indian with capital gains of around ₹ 1 crore, do I need to file Schedule AL? —Sanjeev Sharma Since you bought listed shares in 2018, under the Indian tax law, they will qualify to become long-term capital assets, and the gains or loss that you will make on their sale would become long-term capital gain/loss. Under the …

How tax on rental income works for NRIs?
1 year, 7 months ago

How tax on rental income works for NRIs?

Live Mint  

How is income from house property taxed in India for NRIs or non-resident Indians? Rental income from the property situated in India is taxable in the hands of the owner of the house property, whether it is for an NRI or a resident Indian. The method of computing taxable rental income is prescribed under the income tax law as follows: …

How can NRIs claim tax deduction in India?
2 years ago

How can NRIs claim tax deduction in India?

Live Mint  

How can a Non-Resident Indian claim tax exemption of up to ₹1.5 lakh under 80C and other sections. For deductions under section 80C, the investments allowed to NRIs are: life insurance premium payment and children’s tuition fee paid to any school, college, university or educational institution situated in India for full-time education of any two children. They can also claim …

Taxation on sale and purchase of immoveable property by NRIs: All you need to know
2 years, 10 months ago

Taxation on sale and purchase of immoveable property by NRIs: All you need to know

Live Mint  

Owing to an increase in the transactions of purchase and sale of immoveable properties, going unreported and undervalued, the Government felt the need to bring a regulation to improve the reporting of such transactions, with the PAN card number and details of the buyer and seller. TDS on Sale of Immovable Property Particulars % Where Seller is a RESIDENT Any …

Tax Issues Arising Out Of A Sale Of Indian Securities By A Non-Resident To A Resident
3 years, 5 months ago

Tax Issues Arising Out Of A Sale Of Indian Securities By A Non-Resident To A Resident

Live Law  

One of the fundamental drivers of any transaction involving the sale of securities is the impact of tax laws on such transaction. As per section 45 of the IT Act, any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head "capital gains". Securities of an …

Income arising in India is taxable for NRIs
3 years, 11 months ago

Income arising in India is taxable for NRIs

Live Mint  

An employee is on work deputation in the UK. When the employee returns to India and his residency in India is more than 182 days in a financial year, does he need to pay tax on the income earned only in India? You must meet any of the following conditions and both the additional conditions: Conditions: a) you are in …

NRIs are subject to tax deducted at source on capital gains
4 years, 2 months ago

NRIs are subject to tax deducted at source on capital gains

Live Mint  

An Indian resident of foreign origin had two shares that the family did not know of. Capital gains tax shall apply in the case of sale of shares. In the case of inheritance, for the purpose of calculating capital gains, the purchase price paid by the original owner shall be considered for the inheritors. Note that NRIs are subject to …

Year-end tax compliance for NRIs
5 years, 10 months ago

Year-end tax compliance for NRIs

Live Mint  

India has witnessed significant movement of individuals across the globe, which leads to tax incidence in their new country of residence besides the tax obligations arising from the sources of income or investments in India. The Indian tax laws provide that an individual qualifies as a ‘non-resident’ if he is present in India for a period less than 60 days …

NRI taxation: Income arising from use of asset inherited is taxable
6 years, 2 months ago

NRI taxation: Income arising from use of asset inherited is taxable

Live Mint  

I am an NRI living in California. —Name withheld on request Under the India income tax law, the value of any asset received under a Will or by way of inheritance is not taxable in India. In case of a long-term capital asset, taxable capital gain will be net sale proceeds less indexed cost of acquisition less cost of improvement. …

Rental income from property in India taxable for NRIs
6 years, 3 months ago

Rental income from property in India taxable for NRIs

Live Mint  

I have an income of ₹ 2 lakh from two farm houses I have rented out in Manali. —Name withheld on request Income from a property situated in India must be reported in India by filing a return and relevant tax must be paid on it. From this rental income, reduce municipal tax already paid by you. Receipt of just …

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