NRI Tax Return Filing in India- Which Incomes are Taxable?

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NRI Tax Return

Determination of Taxable Income for filing NRI Tax Return in India

The Financial Year 2021-22 is coming to an end and every individual assessee has to prepare and file their Income Tax return in Indiaon or before the specified due date i.e 31st July 2022 unless and until again the pandemic broke out and results in delay in all compliances including Income Tax Return Filing in India.

In this writeup, we would be discussing about types of income of NRI which are taxable in India. This would be helpful in filing NRI Tax returnin India.

In case of NRIs, following income which is earned in India or received in India or accrue or arise in India would be taxable in India namely,

  1. Salary Income Earned in India:

  • In case NRI has rendered any service in India, it would be taxable in India as it will be considered as income arises in India. Therefore, even if salary is received outside India for services rendered in India, it would be taxable in India.
  • Similarly, Salary received in India for services provided in India is taxable in India in case of NRIs.
  • In case NRI is an employee of the Govt. of India or a citizen of India, then it would be taxable in India even though the service is rendered outside India. However, salary of foreign diplomats and ambassadors rendering services in India are exempt

  1. Income from House property:

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In case NRI has any property situated in India through which He/ She is earning rental income, same would be taxable in India.However, like Residents, NRIs would also be allowed statutory deduction of 30% from such rental income and balance would be taxable. Further, any residents paying rental income to NRI outside India would have to deduct TDS @30%. Also, at the time of such remittance of rental income outside India, Form 15CA and 15CBwould be required by the residents making payments to NRIs.

  1. Income from Business or Profession

In case, NRI is running any business or profession in India, any income from such business or profession which is controlled or set up in India, would be taxable in India.

  1. Income from Capital Gain:

In case, NRI is engaged in share trading activities or sold any mutual funds or crypto currency, any 

Capital gain on transfer of such shares or mutual funds or crypto currency would be taxable in India. 

Similarly, in case NRI sold any property, any gain from sale of such property would also be taxable in India. In such case, resident buyer of such property would have to deduct TDS @20%. Also, like residents, NRI would also be eligible to avail exemption u/s 54 and 54 EC

  1. Income from Other Source:

Like Residents, in case NRI has earned any income form FDR or any interest on saving bank account, same shall be taxable in India. However, deduction upto. Rs 10,000 would be available on such interest income. 

Thus, from above, we may infer that like Residents, NRIs are also taxable for income earned under 5 heads of income and aforesaid points shall be kept in mind at the time of NRI Tax ReturnFiling in India.

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