Will NRI be taxed in India?
Asked by: Keyon Upton PhD | Last update: August 12, 2025Score: 4.5/5 (64 votes)
Non-resident Indians (NRIs) are taxed on income earned or collected in India. This could be from sources like property rent, share dividends, and investment and savings capital gains, if over a specified limit. Income earned outside India is not taxable in India.
Is NRI taxed in India in 2024?
NRIs must file tax returns in India if their total annual income exceeds Rs 2.5 lakh under the old regime or Rs 3 lakh under the new regime. Tax slabs under the old tax regime (FY 2024-25): No tax is payable on income up to Rs 2.5 lakh.
Is NRI returning to India taxable?
An NRI is not liable to pay tax on income earned outside India. However, an NRI returning to India gets a NOR status, eventually converted to a ROR status. A resident Indian is liable to pay tax on global income under the income tax laws.
Do I need to file income tax in India if I am NRI?
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
Do I have to pay taxes in India if I live in the USA?
If you have lived in the U.S. long enough to be considered an NRI but still have income coming from India, you are required to file your Indian income tax return when your income exceeds the basic exemption limit.
When is an NRI required to pay #tax in India? | English
What is the new NRI rule in India?
The income tax provisions for NRIs are not subject to age, gender, or any other specification. Therefore, you will have to pay the necessary tax for the income earned in India beyond ₹2.5 lakhs.
Can I keep my US bank account after moving back to India?
As per the Reserve Bank of India (RBI), you can continue to hold your international bank accounts, which you had opened overseas when you were an NRI.
Does OCI pay tax in India?
Taxation of OCIs
If an OCI is classified as a resident under these criteria, their global income will be taxed in India. “Any earnings, regardless of location, will be subject to Indian income tax," says Pallav Pradyumn Narang, partner, CNK. If classified as a non-resident, their taxation is different.
Do I have to pay tax in India if I receive money from abroad?
Q- How much foreign income is tax-exempt in India? According to the IT Act of 1961, any income up to INR 2,50,000 is not subject to income tax. Foreign income is considered domestic income and taxed according to the relevant slab rates.
How long can an NRI stay in India without paying tax?
Unlike residents, NRIs are not required under the law to pay tax on overseas earnings or declare foreign assets. However, if they overstay - spending more than 181 days in a year in India - tax and disclosure regulations, as related to residents, apply to them.
How much money NRI can keep in India?
As per NRI Foreign Currency Rules in India NRIs can carry up to US $5,000 in cash and US $10,000, including cash, traveler's cheque, etc. Anything above this limit must be declared before the customs department upon arrival. If the cash is in Indian currency, then only up to Rs 25,000 is allowed.
How much foreign income is tax-free in India?
3,00,000 is tax-free, while under the Old Regime, the threshold is Rs. 2,50,000. This article will explore the taxation on foreign sources of income in India for both residents and non-residents. IndiaFilings experts help you with ITR filing, ensuring accurate tax compliance for residents and non-residents!!
Is money sent to NRI taxable in India?
In such a case, you do not need to pay taxes on the amount sent. Even if the money is being sent as a wedding gift or inheritance, it is not taxable. However, if an NRI transfers money to someone not related by blood, then there is a tax aspect. Any amount over Rs 50,000 in a year is taxable.
Can OCI start business in India?
However, In case of the 'Non-resident Indian' (NRI), and Overseas Citizens of India (OCI), the Private Limited Company registration in India could be considered as the ideal kind of business that could be registered in India.
Do the NRE have to pay tax in India?
Income from deposits such as fixed deposits or interest earned on bank savings accounts in India. > Interest earned on NRO (non-resident ordinary) accounts will be taxed, whereas the interest on NRE (non-resident external) and FCNR (foreign currency non-resident) accounts will be exempt from taxation.
Can I live in India permanently with OCI?
(i) An OCI is entitled to life long visa with free travel to India whereas for a PIO card holder, it is only valid for 15 years.
How to avoid inheritance tax in India for NRI?
Tax liability for an inherited property as an NRI
There is no tax on inheritance of property, however, any income (such as rental income) attributable to that property shall be subject to tax. When selling immovable property, it is important to consider the capital gains tax.
Do NRIs need to file a tax return in India?
NRIs are generally not required to file Income Tax Returns (ITRs) solely based on their non-resident status. However, they must file if they meet certain income thresholds: Old Tax Regime (optional): NRIs must file ITR if their total income in India exceeds ₹2.5 lakhs in a financial year.
Can I transfer all my money from USA to India?
You can send up to $50,000 directly to an Indian bank account from your US account. You can make a money transfer to India banks including State Bank of India, HDFC and ICICI.
What are the tax rules for NRI returning to India?
An NRI who has returned to India for settlement, whose total stay in India for 4 preceding years does not exceed 364 days will not lose his non-resident status in the following year(s) if his total stay in India in such year(s) (from April 1 to March 31) does not exceed 181 days. 4.
Can NRI hold USD account in India?
An RFC (Resident Foreign Currency) Savings Account is a savings account maintained in foreign currencies - USD and GBP - for NRIs who have returned to India and hold funds in foreign currency.
How many days can NRIs stay in India without tax?
182 Days Tax Rule in India for NRIs. NRIs are individuals who have a family lineage of Indian parents/grandparents but have been living outside India for more than half of the previous year and intend to do so for an indefinite period of time for the purpose of education, employment, profession, etc.
Can a NRI buy property in India?
As an NRI/OCI, you can purchase a property independently or jointly. You can purchase jointly either with a Resident Indian (RI) or an NRI/OCI. If you have a property in India and you later attain an NRI status, you can continue to hold the property in your name.
What is the tax free income in India?
For an individual below 60 years of age, the basic exemption limit is of Rs 2.5 lakh. For senior citizens (aged 60 years and above but below 80 years) the basic income exemption limit is of Rs 3 lakh. For super senior citizens (aged 80 years and above), the basic income exemption limit is Rs 5 lakh.