It become difficult for NRIs to manager their finances in India. They face challenges in keeping up-to-date on the amendments or new introductions of laws or regulations that may affect their tax liabilities and in remaining compliant with the ever increasing compliance requirements. The Accorp tax team is made up of proficient and expert professional that guide NRIs through the entire process and all compliance issues. We provide NRI Income Tax Services to assist our clients. They include tax planning, filing of tax return and compliance with various laws and transactions. We also assist them in purchasing or selling property in India, as well as liaise services for their needs.
There is a fair amount of confusion about tax implication for NRIs who want to sell any house property that they may have in india
Over years of living abroad, you may have accumulated funds in all your NRI accounts.
Any NRI, returning to india, has to follow numerous formalities such as transferring of assets and funds to resident accounts, facing foreign exchange issues, etc.
The process of selecting the form of business organization plays a very important role in setting up of business as various factors like flexibility, business requirement, taxation etc are required to be considered and a wrong decision may hamper yyour future business plain.
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A person who is not a resident of India is considered a non-resident of India (NRI).
You are a resident if your stay in India for a given financial year is:
In case you do not satisfy either of the above conditions, you will be considered an NRI.
An NRI, like any other individual taxpayer, must file his return of income in India if his gross total income received in India exceeds Rs 2.5 lakh for any given financial year. Further, the due date for filing a return for an NRI is also 31 July of the assessment year or extended by the government.
If an NRI receives income in India, such income is taxable in India,i.e. India as a source state has the right to tax such income. However, the country where such NRI is a resident will also have a right to tax such income as it is the residence state. This way, the NRI will end up getting taxed twice on the same income. To overcome this, India has entered into DTAAs with various countries. It will help eliminate double taxation by allowing the taxpayer to claim credit for foreign taxes paid while filing their return of income in the home country.
If there is a rental income in India, then tax papers need to be filed in India mentioning the PAN and tax to be paid. Also to note, that though holding one property in India is considered as ‘self-owned’, a second property, even if it is not on rent, is considered ‘deemed rented’ and tax needs to be paid for that. You can, however, show 30% of the deemed rental as ‘maintenance cost’. There is no tax to be paid abroad (say, USA) on ‘deemed’ income, but declaring it is important as during repatriation of funds from India, it should not cause any issue.
According to section 24 of the Income Tax Act, the interest on a home loan is deductible from the income gained from house property to the extent of Rs 2 lakh per annum for self occupied property. For other than self occupied property, you can claim actual interest paid. Moreover, up to Rs 1.5 lakh of the principal repayment can be deducted under section 80C (subject to an overall limit of Rs 1.5 lakh of that section including other investment options which allow grant under the same section).