Nri taxation

2️⃣ What Income is Taxable for NRIs in India?

🔹 Taxable in India (if earned in India):

• Rent from property in India

• Capital gains from selling Indian assets

• Interest income from Indian bank accounts (except NRE/NRO)

• Salary received in India

• Business or consultancy income earned in India

🔹 Not taxable in India:

• Foreign income (earned and received outside India)

3️⃣ Tax Deductions and Benefits Available

NRIs can also claim:
✅ Section 80C deductions (e.g. LIC, ELSS, ULIPs)
✅ House loan interest
✅ Education loan interest
✅ Health insurance under Section 80D

But cannot invest in: PPF, NSC, or post office savings.

4️⃣ TDS (Tax Deducted at Source) for NRIs

• TDS on rent, capital gains, or interest is often higher for NRIs

• TDS on property sale by NRI = 20% to 30% + surcharge & cess

• To avoid high TDS, NRIs can apply for lower TDS certificate from the Income Tax Department

5️⃣ Filing Income Tax Return (ITR)

NRIs must file ITR in India if:

• Their Indian income exceeds ₹2.5 lakhs

• They want to claim refund or avoid double taxation