Taxes are an important part of the lives of non-resident Indians (NRIs). Whether it is to rent or sell their native property, repatriate funds or invest in India, or claim the benefits as per Double Taxation Avoidance Agreements (DTAAs) for earning global income as an Indian.
NRIs who receive any sort of salary, business profits or investment profits from India are also liable to taxes. Repatriating NRIs often need legal assistance through their FEMA or RBI compliances.
In general, there is a plethora of tax and accounting-related situations that NRIs have to face where a chartered accountant could be the best assistance to bridge the gap. Today, MPVD & Associates is one of the top 20 CA firms in Kolkata that offer NRI services.
We widely work with NRIs using the H1B visa, EB-5 visa and other work visas across the USA, UK, Middle East and other parts of the world, Overseas Citizen of India (OCI) status holders, and those who have heavy investments in the Indian share market. Our specialities in NRI taxation services in Kolkata lie in the comprehensive solution that improves transparency, convenience and compliance from all directions.
What Makes You An NRI?
It may sound like a dummy question for someone who already has this status. However, if you are someone who is gauging their status for shifting to the USA, UK, Australia or any other country—as in live and work there—you must find this simple answer confusing. Our pivotal work as one of the top CA firms in Kolkata is to keep you informed, so here it goes!
A non-resident Indian is a person of Indian origin who lives and works outside of India for a specific period. A person’s physical presence or absence from their country determines their residential status. It works the same for those who have family and relatives in India.
- Living in India for less than 182 days (or 6 months) during a financial year.
- Living in India for less than 365 days in a span of 4 previous FYs and 60 days for the ongoing FY.
NRI Liabilities in the Income Tax Act
Under the Indian Income Tax Act, the tax liabilities of an NRI depend upon his residential status, which is determined on a yearly basis. While the fundamental layout of the liabilities may remain the same, the rates, regulations and exemptions may change from time to time. A big part of our NRI taxation services in Kolkata is to keep our clients abuzz with the latest forms of it.
Please note that if the individual’s residential status is changed to that of a resident in the following year, the global income, both Indian and foreign, is subject to tax. This makes it essential for NRIs to keep a close watch on their tax and residential status each financial year.
| Category | Taxable Status | Applicable Tax Rates/Details | Definition |
| Salary Income | Taxable if the salary is earned in India or for services rendered in India. | ₹3 lakh as per the new tax regime of FY 2023-24 | Salary remitted to a foreign account is still taxable if earned in India. |
| Income from Rent | Taxable if the property is located in India. | TDS at 30% is deducted by the tenant. | Deduction for municipal taxes and a 30% standard deduction are allowed. |
| Capital Gains (Property) | Taxable if an NRI sells property located in India. | – Short-term gains: Taxed as per income tax slab rates.
– Long-term gains: 20% after indexation. |
Capital Gains Account Scheme can be used to save taxes if the gains are reinvested. |
| Investment Income | Taxable if investments are located in India, such as stocks, mutual funds, or fixed deposits. | – Dividend income: TDS at 20%.
– Short-term capital gains (stocks): 15%. – Long-term capital gains: 10% (above ₹1 lakh for equity-related instruments). |
Deductions under Section 80C are not available for most investment incomes. |
| Business Income | Taxable if the business is operated or controlled in India. | Taxed as per the NRI’s income tax slab. | Exempt if the business has no operations in India. |
| Income from Other Sources | Taxable for interest earned on savings accounts, fixed deposits, or other Indian assets. | – Savings account interest: Taxable as per slab.
– FD interest: TDS at 30%. |
NRO account interest is taxable, but NRE and FCNR accounts are tax-exempt. |
| Repatriation of Funds | Not taxable unless the funds are tied to taxable Indian income (e.g., rent, investments, property). | N/A | Subject to FEMA and RBI regulations, but not taxable if funds were already taxed. |
| Double Taxation Relief | Available under DTAA (Double Taxation Avoidance Agreements). | Rates vary by country and income type. | NRIs can claim credit for taxes paid in one country against the liability in another. |
NRI Taxation Services in Kolkata: Tailored Solutions Offered by MPVD
An increasing number of NRIs now seek CA services from their home country. We at MPVD & Associates are one of the top 20 CA firms in Kolkata to streamline your finances, assets, and business. We cover all the following areas while working with NRIs:
- Income Tax Filing: Timely and accurate income tax return filing concerning the income accumulated abroad.
- Tax Planning and Consultancy: Strategies for the reduction of taxable income through exemptions, deductions, and rebates.
- Capital Gains Taxation: Solutions for taxation on India-held assets, such as property and financial instruments.
- Double Taxation Avoidance Agreements (DTAA) : Guidance for avoiding double tax by utilizing tax treaties between India and other countries.
- Wealth and Estate Planning: Resource to help NRIs with estate planning, including taxation of inherited wealth and property transfers.
Book an Appointment with NRI Tax Experts at MPVD & Associates—One of the Top 20 CA Firms in Kolkata
MPVD & Associates is one of the top CA Firms in Kolkata, offering NRI Tax services. What truly matters for us to personalise our approaches is understanding that the issues faced by NRIs are often the most complex ones.
Remittances, repatriations, or choosing the best options for income and asset management. We empower NRIs with in-depth knowledge of the latest amendments and provisions in Indian tax laws and provide unbiased recommendations on the best options. We welcome you to book a consultation with our CAs specialising in NRI taxes. Have a better solution, wherever you are.