InvestorQ : Which NRI incomes are taxable in India?
Pratik vyas made post

Which NRI incomes are taxable in India?

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Rutuja Nigam answered.
3 months ago
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To obtain the NRI status, an individual of Indian origin shall have stayed in India for less than 120 days and whose income (from Indian sources) is more than 15 lakhs. Those individuals qualifying as ‘deemed resident’, will be considered as ‘Residents but Not Ordinary Residents’ (RNOR) if their stay in India is more than 120 days but less than 182 days. In the case of RNOR, only income generated from Indian sources shall be taxable in India. This status needs to be determined individually for every financial year that may vary from year to year.

As per the residency rules, only income that is derived from a direct or indirect source of origination from India shall be deemed as income accrued in India and NRI would be liable to pay tax on it or on any income which is earned in India.
Here are some of the incomes that become taxable in India:

House Property Income: If the house property is located in India, and the NRI generates any rental income from such property, it shall be taxable in India. All other deductions such as standard deduction at the rate of 30%, and 80C deduction for repayment of principal, stamp duty and registration charges, etc. paid on the house can also be claimed.

Salary income: Any income from salary received in India or for service rendered in India, NRIs shall be liable to tax in India at the slab rate applicable in that financial year. If the Government of India remits any salary or income to an Indian citizen for services rendered outside India, it shall be considered as income accrued in India and become taxable in India even if the individual has obtained the status of NRI.

Business/Profession income: Any income by NRI from a business set up in India shall be considered as income accrued in India and becomes taxable in India.

Income from Other Sources: Other income like interest on a savings account or fixed deposits held in Indian banks becomes taxable in the hands of NRI in India.

Capital Gains income: Income from a gain on sale of capital assets like house property, shares, gold, securities, etc. of Indian origin shall be taxable in the hands of NRI. However, NRIs cannot adjust their capital gains with a basic exemption limit of Rs 2.5 lakh as allowed to residents.
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