What is the tax liability on income earned in India for a non-resident Indian?
- Harish
.
Read our full coverage on Union Budget
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.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU