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) |
Taxable84,000 |
Taxable84,000 |
Taxable84,000 |
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. |
Taxable3,60,000 |
Taxable1,20,000 |
Taxable1,20,000 |
9. Profit from a business in London out of which half amount is received in India. |
Taxable2,40,000 |
Taxable1,20,000 |
Taxable1,20,000 |
10. Profit from a business in Bombay, received in London. |
Taxable |
Taxable |
Taxable |
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R-OR : Resident but Ordinary Resident
-
R-NOR : Resident but Not Ordinarily Resident
-
NR : Non-Resident