THE NORMAL Income Tax Act of India is not applicable on the NRI directly. But there is a provision for NRI to start their business in India. Of course, certain tax regulations are applicable if non-resident plans to open up a business.
Who is an NRI when it comes to Tax regulations?
When the Non-resident taxation in India is considered, NRI is a person who has not stayed in India for last 182 days or has spent more than a year in a foreign land. For NRI who declared themselves as residents in India, the globally earned money falls under taxable limits. But NRIs who don’t declare themselves as residents, only the portion of earning that is earned in Indian land falls under tax liability. No matter if you are an NRI if you level of income exceeds the standard income of Rs. 2,50,000/- you are liable to pay the Indian government the applicable amount of tax. Filing income tax is very important for NRIs as well because of the following reasons –
Tax filing helps them to get refunds for various expenditures.
If they have incurred a loss in business and want to carry it forward then the ITR can help you out of the situation.
When it comes to Non-resident taxation in India there are certain deductions that are not permitted for NRI but are considered for resident Indian –
There is no permission for NRIs to invest in PPF accounts.
NRIs are not even permitted to invest their earned money in NSC
NRI is not eligible for the Post office scheme for 5 years
No matter if you are the senior citizen, if you are an NRI then you don’t get benefitted with the silver investment plans.
This is the situations when NRI need to hire professional tax consultants to provide them with good investment ideas and help them in establishing business here.