Taxability for NRIs depends on the number of days spent in India: Kuldip Kumar

Kuldip Kumar, partner-tax & regulatory services, PwC India, answers questions on tax and Budget 2015

What is the tax liability on income earned in India for a non-resident Indian?
- Harish


Taxability in India depends on the tax residency of the individual which in turn depends on the number of days the individual is present in India. Assuming the person of Indian origin qualifies to be non resident of India under the Indian tax laws, then such individual would be taxable in India only on his India sourced income or income received in India. In case of non-resident Indians, there are special provisions governing the taxability of certain incomes such as capital gains, investment income etc. Further, non-residents do not get tax slab benefit in relation to their capital gains in India.

 

However, where individual qualifies to be ordinarily resident of India, then such individual would be taxable in India on his or her global income. However, credit of taxes paid overseas would be available in accordance with the relevant treaty or domestic tax laws as the case may be.