Taxable Income of NRI - NRI Taxation (Benefits and More)

The income tax rules applicable for NRIs (Non Resident Indians) differ from that of the resident Indians. It is important to note that NRIs should pay taxes for capital gains or income they earn in India.

According to the Income Tax department, an individual is categorised as a non-resident Indian under specific conditions as listed below:

• He or she lives outside India for 182 days in the previous year
• He or she does not stay in India for 60 days during the previous year and 365 days or more for four years prior to the previous year

Taxable Income of NRIs:

According to Foreign Exchange Management Act and Income Tax Act, 1961, a NRI can should taxes under specific conditions as listed below:

• Taxable income in a financial year in India is above Rs.2 lakh (exemption limit)

• Long-term or short-term capital gains earned from the sale of any property

The following table consists of details of taxable income of NRIs

Deductions Available to NRIs:

The following table shows the deductions and exemptions available for NRIs

Deductions Unavailable to NRIs:

NRIs cannot avail of the following deductions available under the IT Act, 1961

• Investment under RGESS under section 80CCG
• Differently-abled under Section 80U, Section 80DD and Section 80DDB
• Investments which are unavailable to NRIs are listed below:
• Senior Citizen Savings Scheme
• National Savings Certificates
• Post Office 5 Year Deposit Scheme
• Public Provident Fund