TAXAJ

Non-Resident Indian (NRI) Tax Returns Filing

Every NRI who has earned income in India is required to pay taxes on such income. The income may be on rendering some services or on sale of some assets located in India. Any excess TDS that may have been deducted can also be claimed as a refund only if the assessee files return within the due date. For that, you need income tax login details to get into the website for efiling income tax, i.e. www.incometaxindiaefiling.gov.in

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About This Plan

Are you eligible business under Presumptive tax Scheme? Disclose income under section 44AD & sec 44ADA and file tax return with TAXAJ.

Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It usually takes 3 to 5 working days.

Buy Now
Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered

  • CA Assisted Filing of your Income Tax returns
  • Email/Skype/Calling Support
  • Includes foreign & domestic income and resulting tax liabilities
  • Handling complexities of taxation in multiple countries, availing double taxation avoidance agreements (DTAA)
  • Declaration of foreign assets for Indian residents (Schedules FA, FSI and TR in the Income Tax Return)
Who Should Buy
  • Indian citizens working on-site, at client locations outside India
  • Indian citizens who own a bank account or any other asset abroad
  • Foreign nationals who work in India, who earn salary in India or have Indian assets
How It's Done

    • Purchase of plan
    • Upload documents
    • Review computation sheet
    • Return filed & acknowledgement generated
Documents Required
  • Form 16 from your company
  • Form 26AS Tax Credit Statement
  • Bank a/c -NRE/NRO A/C statement(if any)
  • Details of any Income earned in India
   Are you a Resident or a Non Resident Indian?

What are the ingredients of taxable income in India for an NRI? Suppose You landed yourself a plush job outside the country, and you are living the dream. However, the Income Tax Act had a mind of its own and has laid out certain conditions to define your residential status. This status will define your tax-ability in India. Before we understand who is a Non-Resident Indian, lets first decide who a Resident Indian is โ€“ An Individual would be a RESIDENT of India in the eyes of income tax purposes if-


๐Ÿ‘‰ He/She is in India for 182 days or more during the financial year.

or

๐Ÿ‘‰ If he/she is in India for at least 365 days during the 4 years preceding that year AND at least 60 days in that year.

So, therefore โ€“ if you fail to satisfy the condition mentioned aboveโ€“ you will be considered an NRI. If you are an Indian Citizen and have to leave India for employment, then 60 days minimum duration will be increased to 182 days. In the case of an Indian citizen and a member of a ship's crew, the calculations are different. Here the period of stay in India shall, in respect of an eligible voyage shall be computed as follows:

๐Ÿ‘‰ The number of days of stay in India for ship crew member shall not include the days โ€“ from the start date of the Continuous Discharge Certificate and ending on the end date of this document, as signed off on the Discharge certificate.

๐Ÿ‘‰ Continuous Discharge Certificate must be as per the Merchant Shipping (Continuous Discharge Certificate-cum-seafarerโ€™s Identity Document) Rules, 2001 made under the merchant shipping act, 1958

๐Ÿ‘‰ This Continuous Discharge Certificate must be for a voyage, which originates from any port in India and has its destination at any port outside India OR vice versa.


The above rule is applicable from the 1st of April 2015 to find out the residential status of Indian citizens as crew members on ships starting from the financial year 2015-16. Such crew is considered NRI for income tax purposes if they spent 182 days or less in India. While calculating this stay of 182 days, the entire period mentioned in the Continuous Discharge Document shall be excluded even though the ship may have been on Indian coastal waters in its journey. Earlier, the number of days outside India was only calculated from the Indian ship left Indian coastal waters.

In Case of Sailing on Foreign ships: Indian crew serving on foreign ships for 182 days or more are treated as non-resident in India, irrespective of where the ship trades (including Indian waters).


While sailing on Indian ships: A seafarer serving on Indian ships outside India for 182 days or more in a year is considered a non-resident Indian. Days spent by a ship in Indian territorial waters is regarded as a period of service in India, as per the tax rules framed in 1990. The number of days spent outside India of Indian crew working on Indian ships gets counted when the Indian ship crosses the Indian coastal boundaries. This increase applies to you if you are an Indian citizen or a PIO and you live outside India and visit India. The intention behind these relaxing norms of a minimum number of days to 182 is to protect your tax liability (so you donโ€™t get taxed as a Resident Indian). If you decide to visit India for an extended stay to visit family or meet other obligations, end up staying more than 2 months. Besides Resident & Non-Resident Indian, there is a third category โ€“ A Resident But Not Ordinarily Resident. Suppose, after spending many years abroad and having recently moved back to India after so many years, you may fall in the category of Resident but not Ordinarily Resident (RNOR).
   What is R.N.O.R. (Resident but Not Ordinary Resident)?

You will be considered Resident but Not Ordinarily Resident in a year on fulfilling any one of the conditions mentioned:

๐Ÿ‘‰ If you have been an NRI in the last 9 out of 10 FY.

OR

๐Ÿ‘‰ You have, during the last 7 financial years have been in India for 729 days or less.


What is your taxable income for Indian Tax Laws?

If you are an NRI, 

๐Ÿ‘‰ Any income earned here is taxable. 

๐Ÿ‘‰ But all Your Income earned outside India isn't taxable in India.


In case of the Salary of a non-resident seafarer, i.e. ship crew member for services outside Indian territory on a foreign ship, will not be included in his taxable income, even though his Salary is credited in the NRE account of the seafarer with an Indian bank. For instance, seafarers rendered their entire service in Europe and spent less than 182 days in India. The company credited his Salary in the NRE bank account with some Indian Bank. In this case, his salary income will not be included in the total taxable income of the seafarer.


What is your taxable income for Indian Tax Laws?

 If you are a RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR), Interestingly, if you have just returned to India, you can keep your RNOR status active for up to 3 financial years post your return. That could benefit you in an authentic way โ€“ since your taxation is already as per the NRI structure, and therefore income that you may earn outside of India (while you may have returned) will continue to be not taxed in India. 

Therefore just like an NRI โ€“

๐Ÿ‘‰ Any income that is 'earned' in India is taxable for you in India

๐Ÿ‘‰ Your income outside of India is not taxable in India

And you can continue this status for 3 years. However, once you have attained the status of a Resident, all of your income within and outside India will be taxable in India, barring any concessions that may be available under the Double Taxation Avoidance Agreement between India and the country from where your overseas income has arisen.

   What does the term โ€œEarnedโ€ in India mean?

Any income received in Indian territory or the law deems it received in India by you or on your behalf. โ€“ Any income that accrues or arises in India or income that the law believes accrues or arises in India.

   What does โ€˜Accrues in Indiaโ€™ mean?
This specific term 'Acrual' is mentioned in Section 9 of the Income Tax Act (this applies to everybody while considering the Income that accrues irrespective of residential status). 
If your answer to any of the following remarks is YES, then it will be considered as incomes accrued in India:-
๐Ÿ‘‰ Income related to some businesses in India.
๐Ÿ‘‰ Income from property, assets or another source in India.
๐Ÿ‘‰ Capital gain on assets situated in India.
๐Ÿ‘‰ Salary Income.
๐Ÿ‘‰ Income from salary payable by the Government for services rendered abroad to an Indian citizen.
๐Ÿ‘‰ Dividend paid by any Indian company even though paid abroad.
๐Ÿ‘‰ Interest, royalty or technical fees received from the Government or from specified persons in specific situations.

Frequently Asked Questions:

  • How do CA-Assisted Plans work?

    Handling complex cases where foreign income is involved requires expert assistance. TAXAJ assigns a chartered accountant to you after payment. The CA contacts you and prepares your return. Finally, the CA e-files the income tax return after your review.

  • Do you offer phone support in this plan?

    Most of the support and assistance is offered over email. You can always schedule a phone call / Whatsapp call with the CA at a time thatโ€™s convenient to you as per your time zone.

  • How do I determine my residential status?

    Your residential status for Income Tax purposes is based on the number of days you spend within India. If you are a foreign national living within India, you may be considered a โ€˜Resident Indianโ€™ for tax purposes, and similarly if you are an Indian living abroad, you might be considered a Non-Resident Indian (NRI).

    Typically, if you are in India for 182 days or more during that financial year, you will be considered a resident. There are a few more conditions associated with this. 

  • Who are the CAs whoโ€™ll be filing my return?

    TAXAJ taps into its CA network and puts you in touch with a qualified CA. These CAs bring a combined experience of 40 years in foreign taxation.

  • I hold stock of a foreign company as RSU/ESOPs. Which plan should I opt for?

    This plan is the right plan for you. In this plan, a CA will prepare and submit your tax return to the IT Department. He will also fill out foreign income-specific schedules and check relevant compliance with regard to Double Taxation Avoidance Agreement.

  • What is the cancellation / refund policy?

    Refund is applicable only if no CA has been assigned on the case, for detailed policy please visit our terms of use

    • Is an NRI liable to tax in India on the sale of equity shares listed on an Indian stock exchange taxable in India?

    An NRI gets taxed on the capital gains arising on the sale of shares listed on a stock exchange in India.

    • Is a non-resident taxable on salary income for the period of services rendered in India?

    A non-resident is taxable on the salary income in respect of the services rendered in India under a deputation or any other arrangement.

    • Is a foreign company liable to tax in India on its branch operations in India?

    The Indian branch of a foreign company is liable to pay income-tax in India and comply with the Indian tax laws.

    • Is an NRI liable to pay tax in India on rental income earned from house property in India?

    An NRI is liable to pay tax on the rental income earned from a house property situated in India.

    • Can an NRI or a foreign company claim a foreign tax credit in their country of residence?

    An NRI or a foreign company can claim the foreign tax credit in their country of residence. The FTC can be as per the tax treaty between India and the country of residence.