Taxability of income of Non Resident Individuals (NRI)

Residential status of an individual provides the scope of his taxable income and tax thereon. An individual can be a resident, not ordinarily resident or non resident in India. The residency of the person in the previous year along with the location of the income accrued in that year determines the taxability of his income as per the income Tax Act, 1961 (“the act”).

For Non-Resident Indians, following shall be chargeable to tax under the act:

  • Income received or deemed to be received in India during the financial year whether earned in India or elsewhere.
  • Income which accrues or arises or deemed to be accrue or arise in India, whether received in India or elsewhere.

In order to avail credit of TDS deducted on any source of income earned in India, the non resident assessees are required to file their return of income in India. Income of a non-resident individual is taxed as per the rate prescribed for Male assessee below 65 years irrespective of women and senior citizen.

Tax Slab for Non resident individuals (Male, Female and Senior citizen) for the financial year 2010-11

Income Tax thereon
Upto Rs. 1.6 lakhs Nil
Above Rs. 1.6 lakhs to Rs. 5 lakhs 10%
Above Rs. 5 lakhs to Rs. 8 lakhs 20%
Above Rs. 8 lakhs 30%

We at have the expertise in handling issues relating to individual taxation. We at provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning.

Please join us now in pursuit of simplifying individual taxation!

Alok Patnia

Leave a Reply

Your email address will not be published.