Remmittance of fund out of India
Frequently Asked Questions by NRIs
Any money earned or received in India must be taxed by NRIs. NRIs pay taxes at a rate that is comparable to that of permanent Indians. However, unless the foreign income is earned in India or is received in an Indian bank account, NRIs are not compelled to pay tax on it.
If an NRI's taxable income in India exceeds the basic exemption threshold of Rs. 2.5 lakhs, they must file a tax return in India. A tax return must be filed in order to request a refund if the NRI had any tax deducted at source (TDS) in India.
Generally speaking, the TDS rate for NRIs is higher than it is for local Indians. The rate is determined by the NRI's country of residency, the type of income, and any applicable tax treaties between India and that country. TDS on the Sale of Property is 22.88% However, you can take permission for lower TDS rate with help of your local CA
NRIs are entitled to the same tax breaks and deductions that Indian residents enjoy in India. For instance, NRIs may be able to deduct their investments in tax-avoidance vehicles like PPF, ELSS, and NSC. NRIs are not eligible for some tax deductions, such as Section 80TTA (interest on savings bank accounts) and Section 80TTB (interest on deposits for elderly citizens).
An NRI might get a refund by filing a tax return if they overpaid taxes in India. The procedure is the same as it is for native Indians, and the NRI's bank account will get a refund.
If they meet certain requirements, such as being an Indian resident for tax purposes, NRIs must disclose their foreign assets and income to Indian tax authorities. If such assets and income are not disclosed, there may be consequences, including legal action.
It’s crucial to keep in mind that tax regulations might change, so not all questions will have the same answers. NRIs are urged to speak with a tax professional or chartered accountant for further guidance on their tax responsibilities in India.
