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3 things to know about taxes for NRI
01:36 Mins Read
This video explains three key things NRIs need to know about taxes.
Transcript
Taxation for non-resident Indians is very similar to resident taxation. However, there are some key differences that NRIs need to be aware of. Firstly, the income NRIs earn outside India is not taxable in India. But the income they earn in India is taxable in the country. For instance, the interest earned on NRE accounts and FCNR accounts is tax-free. But the interest on NRO accounts is taxable. Second, NRIs need to file their income tax returns just like residents, in three specific cases. If the taxable income exceeds Rs. 2,50,000, if the NRI needs to claim a refund, or if the NRI wants to carry forward any losses to be set-off in the coming assessment years, ITR filing becomes necessary. And lastly, the Double Taxation Avoidance Agreement - or the DTAA - is very important for NRIs. India has DTAAs with over 90 countries. And NRIs residing in any of these countries will not be subject to double taxation. That sums up the 3 key things NRIs should know about taxes. Next up, we’ll look at the lessons from top NRI investors.