Taxation of Non-Resident Individual (NRI) Part 3 : FAQ’S on Taxability of NRI By: Ayushi Raja  

Taxation of Non-Resident Individual (NRI) Part 3 : FAQ’S on Taxability of NRI By: Ayushi Raja  

 937 total views

Taxation of Non-Resident Individual (NRI) Part 3 : FAQ’S on Taxability of NRI

By: Ayushi Raja

 
(The author is an article assistant at SSRPN & Co. She can be approached at cassrpn@gmail.com)
In the previous article we discussed briefly the meaning, concept and basis for determinationof Residential status along with its tax provisions. The link for the same has been provided hereby.
https://thetaxtalk.com/2022/03/01/taxation-of-non-resident-a/
https://thetaxtalk.com/2022/03/02/taxation-of-non-resident/
Now, in this article we shall be understanding the instances where the income of aResident but Ordinary Resident, Resident but Not Ordinarily Resident and Non Resident is taxable.
Given below are some FAQ’s :
Particulars
R-OR
R-NOR
NR
1.     Income received in India whether accrued in India or outside India.
Taxable
Taxable
Taxable
2.     Income accrued in India whether received in India or outside India.
Taxable
Taxable
Taxable
3.     Income deemed to be received in India whether accrued in India or outside India.
Taxable
Taxable
Taxable
4.     Income deemed to accrue in India, whether received in India or outside India.
Taxable
Taxable
Taxable
5.     Income received and accrued outside Indiafrom a business controlled from India or profession set up in India.
Taxable
Taxable
Not-Taxable
6.     Income received and accrued outside India from a business controlled outside India.
Taxable
Not-Taxable
Not-Taxable
7.     Income received and accrued outside India from other sources.
Taxable
Not-Taxable
Not-Taxable
8.     Income received and accrued outside India in earlier year but later on remitted to India in previous year.
Not-Taxable
Not-Taxable
Not-Taxable
v APPLICATION BASED
Particulars
R-OR
R-NOR
NR
1.  Dividend received from Foreign Company received in India.
Exempt
Exempt
Exempt
2.  Dividend from Foreign Company received in India.
Taxable
Taxable
Taxable
3.   Dividend from Foreign Company received there.
Taxable
Not-Taxable
Not-Taxable
4.  Agriculture Income from a land situated in Australia but received in India.
Taxable
Taxable
Taxable
5. Agriculture land from a land situated in Nepal and received there.
Taxable
Not-Taxable
Not-Taxable
6.   Rent of Rs. 1,20,000 received from a flat situated in Nagpur but received in London. (1,20,000 – 30% standard deduction = Rs. 84,000)
Taxable
84,000
Taxable
84,000
Taxable
84,000
7.  Rent of Rs. 1,00,000 from a flat situated in London and received there.
Taxable
Not-Taxable
Not-Taxable
8.  Gift of Rs. 3,60,000 received from a friend in London out of which 1/3 is received in India.
Taxable
3,60,000
Taxable
1,20,000
Taxable
1,20,000
9.    Profit from a business in London out of which half amount is received in India.
Taxable
2,40,000
Taxable
1,20,000
Taxable
1,20,000
10.  Profit from a business in Bombay, received in London.
Taxable
Taxable
Taxable
  • R-OR : Resident but Ordinary Resident
  • R-NOR : Resident but Not Ordinarily Resident
  • NR : Non-Resident

Leave a Comment

Your email address will not be published.

the taxtalk

online portal for tax news, update, judgment, article, circular, income tax, gst, notification Simplifying the tax and tax laws is the main motto of the team tax talk, solving