Income tax is definitely a very important thing for people to consider. Whatever a person earns, he has to share a portion of the same to the government so that, the money could be utilized in the welfare of people and also in country’s development. Even a person who is not staying in India but a resident of the country, he has to share a portion of his income to the Indian government. To understand the law better, we are mentioning few important points here.
- An NRI’s income taxes in India will depend upon his residential status for the year.
- If your status is ‘resident,’ your global income is taxable in India. If your status is ‘NRI,’ your income which is earned or accrued in India is taxable in India.
- Salary received in India or salary for service provided in India, income from a house property situated in India, capital gains on transfer of asset situated in India, income from fixed deposits or interest on savings bank account are all examples of income earned or accrued in India.
- These incomes are taxable for an NRI. Income which is earned outside India is not taxable in India. Interest earned on an NRE account and FCNR account is tax-free. Interest on NRO account is taxable for an NRI.
These are the most important points that one has to consider. Income tax is important thing hence knowing each and every aspect of the same is required for the NRI. A good NRI tax service company can help in this in a much better way of course. For a tax payer it is necessary to have the proper knowledge of laws.