Income tax for NRI – We all understand as taxes received from taxpayers are the pillar of our economy. NRI Taxation in the Indian Income Tax Act, 1961 refers to non-domestic earnings. The income tax laws and the benefits provided to them are significantly unique by those relevant to resident Indians.
How is the residential status of a NRI determined?
Any individual should fall under any of these criteria for the following financial year: :
- If the individual is in India for a duration of a minimum of 6 months or 182 days exact, in the context of the financial year.
- The individual is in India for 2 months (60 days) in the previous year and has stayed for a whole year (365 days) over the past 4 years if that individual is an Indian citizen working in a foreign country or a crew member on an Indian ship, just the first criteria are applicable to the particular individual, that implies you are a resident if you spend a minimum of 182 days in India.
The same applies to an Indian Person of Origin (PIO) who is visiting India.
The second requirement does not apply to these people. A PIO is a person whose parents or grandparents were born and raised in India. If an individual does not fulfill any of those requirements, that means the person is an NRI.
For the Financial year 2019-20, if a person visited India before 22/3/2020 and,
(a) was refused to move due to a lockdown on or before 31/3/2020, the time of staying between 22 to 31 March should not be taken into account.
(b) Or has been quarantined because of Covid19 on or since the 1 March 2020 and it has left through an evacuation plane before or on 31 March 2020 or is still not free to exit India for a time from the start of the quarantine to 31 March.
(c) left on an evacuation plane on or before 31 March 2020, the time of staying from 22 March 2020 to the time of departure should never be regarded as having elapsed.
Minimum Salary requirement for an NRI
NRI or not, any Indian citizen whose income exceeds Rs.2.50,000 shall be allowed to submit the income tax return in India. Want to what all things are included taxable income of NRI? We have wrote an in depth article on this – Taxable income for NRI