- Is a Non-Resident Indians (NRIs) is required to file Income Tax Return in India?
If a Non Resident Indians (NRIs) is deriving income from India which is exceeding the threshold limit then it is compulsory for Non-Resident Indians (NRIs) to file his Income Tax Return. If income derived includes the income of short term capital gain from the notified investments in that case income tax return filing is mandatory for Non-Resident Indians (NRIs) even if his total income is not exceeding the threshold limit.
- I am a Non-Resident Indians (NRIs) and I want to purchase immovable property in India then what will be the income tax implications?
There are following implications which need to be kept in mind:
- If the value of the property is more than Rs. 50 lakh then TDS at the rate of 1% need to be deducted.
- If the seller does not have PAN then in place of 1%. TDS will be deducted at the rate of 20%.
- Such TDS has to be deposited with the government within a period of 30 days from the end of the month in which TDS is deducted.
- The liability of deducting and depositing the TDS is with the buyer only.
- You can acquire immovable property in India other than agricultural/plantation property or a farmhouse.
- I am a Non-Resident Indians (NRIs) and I want to sell immovable property in India then what will be the income tax implications?
There are following implications which need to be kept in mind:
- If the property is held for more than 2 years then long term capital gain will be attracted and taxed at 20% of the gain.
- If the property is sold for less than 2 years then short term capital gain will be attracted and will be added to the normal slab of the income tax.
- The buyer will deduct the TDS at the rate of 20% in case of long term capital gain.
- In the case of short term capital gain, 30% TDS will be deducted by the buyer.
- If I am a Non-Resident Indians (NRIs) and I’m accepting gifts from my relative in India then what will be the income tax implications?
While receiving a gift from a relative in India, following points to be kept in mind:
- There is no restriction for Non-Resident Indians (NRIs) in accepting the gifts from the relatives (Definition of relatives is specified in the Income Tax Act).
- Gift received from relatives is exempt income in the hands of Non-Resident Indians (NRIs).
- But the person making the gift is not allowed to make gift exceeding US$ 2, 50,000/- in India.
- If a gift is made in Indian currency then it has to be credited in the NRO account of the Non-Resident Indians (NRIs).
- But before accepting the gift, Non Resident Indians (NRIs) should check the compliances with the country in which he is residing. For example, in the United States, if a person accepts a gift of more than US$ 1, 00,000/- then he has to file a declaration in a prescribed format.
- If I am a Non-Resident Indians (NRIs) and I’m accepting loans from my relative in India then what will be the income tax implications?
The limit specified for making gifts and loans per person is US$ 2, 50,000/-. It is to be noted that the loan must be interest-free and should be matured within one year.
- What are tax implications if a Non-Resident Indians (NRIs) send money to India to his relative?
It is allowed to send money to India. There are no Income tax implications if money is transferred from one individual to another individual.
- What are the implications if Non-Resident Indians (NRIs) invest money in Indian company?
There is no restriction if money is sent to an individual from an individual. But if money is sent/invested in a company then the company has to comply with the norms of ECB before accepting such money. Even if money is invested through equity, there is much compliance which is to be followed.
