Non Residential Indians can also be taxed if they come under certain conditions that have been set by the Indian taxation laws. Non Resident Indian taxation is calculated by determining the residential status of a person. Taxes, even non-resident Indian taxation, are imposed in India at the end of every financial year (31st March). They are imposed in the assessment year for the previous year that is from Aril to March of the previous year.
The residential status of a person is determined in two ways:
If the person was in India for at least 6 months or to be exact 182 days of the previous year or if the person was in India for 2 months or 60 days in the previous year and a total 365 days in the four years prior to that.
Income Tax can be levied on Non-Residential Indians for the following:
Income from Salary: Any salary that is accrued in India and the person’s residential status being determined, income from salary is liable to be taxed.
Income from House Property: If a Non Residential Indian has property within the country and income is being accrued from it. It is liable to be taxed.
Income from Capital Gains: Any capital gains, such as investing in the stock market and any amount accrued therein and the person’s residential status being determined, such income is liable to be taxed.
Income from Business and Profession: Any business or profession set up by a Non Residential Indian, and amount accrued therein is liable to be taxed.
Income from other sources: Income from sources other than the above mentioned and the person’s residential status being determined is liable to be taxed as well.
Non Resident Indian taxation is done under the Income Tax Act that is in force in the country. If you are a Non-Resident Indian and your residential status for a previous year is determined to be in India, then you are liable to pay the taxes.