| Tax is generally imposed in the country of residence | | | | any rent received from the property in India etc. |
| or in the place where the person resides permanently | | | | Whereas, the income which has been generated in |
| or has business. However, in some exceptional | | | | India from any long term capital gains are not taxable in |
| circumstances tax is also imposed in the place where | | | | India. |
| the temporary business is set up or the person is | | | | NRI tax liability is also limited to the abovementioned |
| earning some money from the property situated there. | | | | categories and if in any case the NRI is taxed more |
| NRI tax liability arises in the same manner. The NRIs | | | | than his liability then the NRI can also claim the return of |
| are liable to pay tax on the income that is obtained in | | | | the over tax paid. |
| India. The NRI tax liability begins in India in certain | | | | NRI tax liability is also on the wealth that is generated in |
| situations. The NRIs also have to file return in India at | | | | India, jewellery, gold and such other un-productive |
| uniform rate of interest that is charged in conformity | | | | assets and not on any wealth in any foreign country |
| with the law of the land. | | | | abroad. The interest received from the NRE accounts |
| The NRI tax liability only arises if the income has been | | | | are not charged with interest whereas NRO accounts |
| earned in India from some rental property in India, any | | | | are liable to be taxed. On the other hand, the |
| salary that has been earned in India from any | | | | government of India has also made specific provisions |
| company that is based in India or from any Indian | | | | for the welfare of NRIs. The Income tax act gives |
| company that is set up in the country where the NRI is | | | | concessions to NRIs for some types of incomes. The |
| working. The NRI tax liability also arises from any | | | | Chapter XIIA of the Income Tax Act has specific |
| non-specific assets that are purchased in India. The | | | | sections from 115C to 115I. Concessions on tax up to |
| NRI tax liability is not incurred from the income from | | | | certain percentage are given in the investment in long |
| specified assets or any long term capital gains. | | | | term capital gains. Gifts are also not taxed in this |
| It is a strange fact but it is true that most of the NRIs | | | | respect. But it is necessary for all the Indians who go |
| are not even aware of the fact that they have to | | | | out of India for employment to apply for an IT |
| incur NRI tax liability in India. But in incurring the NRI tax | | | | clearance certificate so that there are no problems in |
| liability, NRIs have to pay tax which is generally much | | | | their visa procurement or any other case. Simple |
| more than the actual liability and thus loss is suffered | | | | procedures, tax on only the real income, tax deduction |
| by the NRIs in discharging their tax liability. | | | | at source and also fixed rate of interests are some of |
| The categories of taxable incomes include the income | | | | the many privileges given to NRIs. |
| generated from any royalty received on account of | | | | However, even after the simple nature of the tax laws |
| the services, any kind of professional services | | | | and the concessions offered there is a need to consult |
| rendered in India, earnings from any company that is | | | | expert tax law professionals or outsourcing |
| engaged in business in India or from an Indian company | | | | executives to have the best advice in this field. |
| set up abroad where the NRI has discharged duty, or | | | | |