Taxability in India depends on the following: Residential status in India; source of income; and place of receipt of income. Residential status depends on your total physical presence in India in current financial year and previous 10 financial years. Residential status is dynamic and needs fresh determination for each financial year. There are three types of residential status in India: Ordinarily Resident (OR); Not Ordinarily Resident (NOR); and Non-resident.
An individual qualifying as OR is taxable on worldwide income irrespective of where the income is earned and received. Such an individual is also required to report his overseas assets in the India income-tax return.
An individual qualifying as NOR or NRI is taxable on the following income:
(a) Income accrued or arising in India
(b) Income deemed to accrue or arise in India
(c) Income received in India.
You would qualify as OR in India for financial year 2017-18 since:
(a) Your physical presence in India is 182 days or more;
(b) Your physical presence in India is 730 days or more in seven financial years preceding the financial year 2017-18;
(c) You qualify as ‘Resident’ in India in any two out of 10 financial years preceding financial year 2017-18.
Contact an experienced NRI tax service company as it will provide the best information and also the way out to save the tax on earnings. It is always required to have the proper requirement of taxes.
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