How NRIs can lower TDS on income generated from India?
1 year, 9 months ago

How NRIs can lower TDS on income generated from India?

Live Mint  

For income generated in India, non-resident Indians are required to file income tax returns. However, the provisions of the Income Tax Act provides certain relaxations or relief for the NRI being subjected to deduction of part or whole of the TDS as discussed below: Application for Lower Deduction by the Tax Deductee/ Payee As aforementioned, there could be certain instances where the NRI is subjected to TDS u/s 195 whereas the NRI’s total tax liability computed for the year is less than the TDS deducted. Alternatively, the application can also made by the Tax Deductor for determination of tax liability as follows: Application for Determination of Tax liability by the Tax Deductor/ Payer Section 195 of the IT Act provides the where the tax deductor/ payer is of the opinion that the recipient/ payee should not be entirely subjected to tax on such income, they may make an application to the Assessing officer to determine the appropriate proportion of sum so chargeable and upon such determination, TDS shall be deducted only on that proportion of the sum which is so chargeable. Depending on the capital gains that result from the sale of a property, the Income Tax Department will calculate the seller's capital gains and issue a certificate for a Nil/Lower TDS deduction. Submitting Form 15G or Form 15H: NRIs can submit Form 15G or Form 15H to the Indian income tax department to avoid TDS on their income if their total income is below the taxable limit.

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History of this topic

How can tenants of NRIs apply for TDS reduction?
2 weeks, 1 day ago

How can tenants of NRIs apply for TDS reduction?

Live Mint  

Under what circumstances a tenant whose landlord is a non-resident Indian can apply for a reduction in tax deducted at source on rent and what are the documents needed to support the application? However, the landlord's actual tax liability will generally be lower due to deductions available against the rent income or lower tax slabs. However, regardless of the landlord's …

What is the tax on an NRI’s professional fees?
3 weeks ago

What is the tax on an NRI’s professional fees?

Live Mint  

I am an Indian citizen and a lawyer by profession. -Name withheld on request I assume you are a tax resident of the US and qualify as a non-resident of India under Indian tax law. If your professional fees are subject to taxation in India, you may examine the provisions of the India-US Double Taxation Avoidance Agreement. Whereas under the …

NRI Taxation Explained: How India taxes non-resident Indians
3 weeks, 4 days 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 …

How are NRIs taxed on rental income?
1 year, 9 months ago

How are NRIs taxed on rental income?

Live Mint  

My son is a non-resident Indian with a small rental income of ₹30,000. Neither he nor his tenant can afford a chartered accountant to submit the tax deducted at source on this income to the income tax department. —Name withheld on request As per income tax rules on TDS, the deductor is obligated to deduct TDS and deposit the same …

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 …

Income Tax: How can NRIs prevent double taxation in India? MintGenie explains
2 years, 1 month ago

Income Tax: How can NRIs prevent double taxation in India? MintGenie explains

Live Mint  

The Non-Resident Indians, or NRIs, who stay abroad for a minimum of 182 days in a year, are eligible to apply for tax exemption in their country of residence if they have already paid tax in India. In other words, this means the NRIs can seek exemption for tax paid in India while filing the tax return in the other …

Income Tax: Resident but not ordinarily resident: Here is how your income will be taxed
2 years, 3 months ago

Income Tax: Resident but not ordinarily resident: Here is how your income will be taxed

Live Mint  

Are you an Indian residing outside the country? One of the main sources of revenue for the government is income tax, which is then used to pay for public services, fulfill debt commitments, and offer products and services to citizens. If a person stay in India for at least 365 days throughout the course of the four years prior to …

Income arising in India is taxable for NRIs
3 years, 10 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 …

Budget 2021: NRIs expecting tax sops, benefits from FM Sitharaman
3 years, 11 months ago

Budget 2021: NRIs expecting tax sops, benefits from FM Sitharaman

Live Mint  

With the countdown for Union Budget underway, the Indian diaspora, which has been instrumental in making India one of the leading recipients of remittances from abroad, is now eagerly anticipating tax sops and benefits from finance minister Nirmala Sitharaman. Relief of residential status on account of Covid-19 With the Covid-19 pandemic, NRIs who were on a visit to India towards …

NRIs are not required to give foreign income, overseas bank details in India
4 years, 2 months ago

NRIs are not required to give foreign income, overseas bank details in India

Live Mint  

I was a non-resident Indian and had bought a policy from an Indian insurer before the Double Taxation Avoidance Agreement was enforced in 2015. Therefore, it would be advisable to share the relevant details with your insurer to make sure TDS is deducted keeping in mind the double tax avoidance between the two countries. Do NRIs have to disclose their …

Stranded NRIs wary of tax implications
4 years, 2 months ago

Stranded NRIs wary of tax implications

Live Mint  

Non-resident Indians stuck in the country because of the pandemic are seeking clarifications on the tax implications of their stay. A change in residency status may result in increased tax liability for some NRIs who have been forced to stay on in India and who seek clarifications from the tax department. “As per Section 6 of the Income Tax Act, …

NRIs are liable to pay tax on dividend income
4 years, 3 months ago

NRIs are liable to pay tax on dividend income

Live Mint  

I have been living in the UK for five years now, and I started investing in Indian stocks this year. —Name withheld on request Until 31 March, dividend income from an Indian company was exempt from Income tax in India with certain exception for super rich “residents”. For shareholders qualifying as NRI, dividend income is taxable at the rate of …

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