How is the tax liability of an NRI determined?

Determination of Tax on an individual’s income depends on the source of such income and the residential status in India.

Am I Required to File My Income Tax Return in India when I am filling my return regularly abroad? 

Any individual, whether NRI or not, is liable to file ITR if his/her income is above INR 2,50,000 subject to certain conditions.

Is an NRI liable to pay tax in India on rental income earned from house property in India?

Yes, an NRI is liable to pay tax on the rental income earned from a house property situated in India.

Is a non-resident taxable on salary income for the period of services rendered in India?

A non-resident is taxable on the salary income in respect of the services rendered in India under a deputation or any other arrangement.

What Is a Short-Term Capital Gain?

If an individual buys a property and sells it within two years of the purchase, then the profit from the sale is called short-term capital gains. Short term capital gains add up to the taxable income of the individual and attract taxes as per the individual’s applicable Income Tax slab. Short term capital gains are calculated by deducting the cost of purchase from the Full Sale Price of the property as per the provisions.

I am an NRI. I have stayed in the UK for the past five years. Am supposed to File My Income Tax Return in India?

Any individual whose income exceeds INR 2,50,000, irrespective of them being NRIs or not, has to file an income tax return in India.

Whether an NRI is required to pay Advance Tax?

If your tax liability exceeds INR 10,000 in a financial year, you are required to pay advance tax.

How can NRI avoid double taxation?

If a person has paid tax on the sale of property in India, then he can get a tax credit of the taxes paid in India, which will reduce his tax liability in the other country. Two methods are specified to claim tax relief – the exemption method and the tax credit method. In the exemption method, NRIs have to pay tax in only one country and have to be exempted in the other. In the tax credit method, if the income is taxed in both countries, tax relief can be claimed in the country of residence.

Do I need to file ITR even if my gross income does not exceed the exemption limit?

In certain cases, even if the total gross income does not exceed the exemption limit, an individual will have to mandatorily file an income tax return, for example, when (i) an Individual has deposited an amount exceeding Rs 1 crore in one or more current accounts maintained with a bank or co-operative bank (ii) Individual has spent an amount or aggregate of amounts exceeding Rs 2 lakh for himself/herself or any other person for travel to a foreign country; (iii) an Individual has Spent more than 1 lac on electricity

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