Tax is one of the components around which the economy revolves. Taxes charged from Indian residents carry equal weightage against the taxes charged from NRIs. The contributions made by the NRIs in the taxation system carry so much value in our country. For every good we buy or for any luxury that we purchase, a tax is charged. Similarly, various amounts of taxes are charged from the NRIs based on their income level. The Indian residents are benefitted to some extent as certain deductions are allowed but the NRIs have to face complex procedures. In a nutshell, we can say that the rules or conditions differ for Indian residents and non-resident Indians. Before paying the right amount of tax, the NRI has to go through a lot of implications.
All information has to be correct and authentic. The tax implications for NRIs are never-ending. One should take the help of a professional in the tax field so that all the steps are executed properly and in time. Taxes are of major importance in the 21st century and it becomes necessary for every individual to pay them.
Let us know about the implications of taxes for NRIs in detail, have a look:-
1. Know about your true residential status
Not everyone who is born in India and lives abroad is an NRI. Certain conditions have to be fulfill to be qualify for the identity of NRI. The person should have stayed in India for at least 182 days or 60 days, the former is in relation to the financial year and the latter one with the previous year subject to certain conditions. Knowing about your true residential status should be your topmost priority. One of the above-listed conditions should be satisfy to claim yourself as NRI.
2. Income taxable for NRIs
Since the NRIs live abroad and visit India only for a short period, they are unaware of the incomes taxable under the taxation system. They should have a piece of detailed knowledge about it. The rental income earned through the individual’s self property, Income from fixed deposits, interest gained on saving accounts are all charged under the taxation system for NRI. There are much more incomes tax under the system. Tax is one of the components around which the economy revolves. Taxes charged from Indian residents carry equal weightage against the taxes charged from NRIs.
3. Certain deduction allowed
The Indian taxation system has favoured the NRIs to some extent. Certain deductions are allow under the taxation system for NRIs.
The payment of premium upon life insurance, payment of kids tuition fees and much more are allow as deductions. One should take guidance and the help of a professional tax advisor for the tax work. Even the smallest mistake can cost you pretty much.
So, these are the implications of the taxation system for NRIs. The income tax implications for NRIs have increased over time and everything should be done with utmost sincerity. All the deductions and incomes to be charge should be study in-depth . To have a proper insight into the true taxation system for NRIs. It is important to decode the implications before execution.