As a Non-Resident Indian (NRI), Person of Indian Origin (PIO), or Overseas Citizen of India (OCI), understanding your tax obligations in India is crucial for maintaining financial compliance. At ArthaX, we specialize in simplifying the complexities of taxation, helping you navigate your responsibilities with ease.
Income Tax Obligations
NRIs, PIOs, and OCIs are subject to taxation on income earned or accrued in India. Common taxable income sources include:
- Rental Income: Income from property rentals in India.
- Interest Income: Earnings from fixed deposits, savings accounts, or other investments.
- Capital Gains: Gains from the sale of property, shares, or other assets in India.
The Income Tax Act of 1961 mandates that if your total annual income in India exceeds ₹2.5 lakh as per the existing tax regime or ₹3.00 lakh as per the new regime in a financial year, filing an income tax return (ITR) is necessary.
Double Taxation Avoidance Agreements (DTAA)
To prevent the same income from being taxed in both India and your country of residence, India has signed DTAA with more than 90 countries. These agreements:
- Reduce tax rates on specific types of income, such as dividends and interest.
- Allow exemptions or tax credits for income already taxed abroad.
To avail of DTAA benefits, ensure you have a Tax Residency Certificate (TRC) from your resident country.
TDS on NRI Transactions
Tax Deducted at Source (TDS) applies to certain transactions involving NRIs. For example:
- Rental income is subject to a 30% TDS.
- Capital gains from property sales attract TDS at rates based on the holding period.
Proper documentation, such as Form 15CA and Form 15CB, is essential for compliance.
Simplify Your Tax Journey with ArthaX
At ArthaX, we assist NRIs, PIOs, and OCIs in managing their tax obligations seamlessly. As your trusted online tax consultant, we offer end-to-end assistance, from filing Income Tax Returns (ITR) to repatriating funds. Our experts ensure compliance while optimizing your tax liabilities, making your financial journey stress-free.
Partner with ArthaX today—where transparency meets expertise, and your financial peace of mind is our priority.
