How long can an NRI stay in India?

An NRI, whose taxable income exceeds Rs.15 lakh stays in India for 120 days or more, then such an individual further needs to check whether his stay in India is 365 days or more in the immediately preceding 4 years.

What is the income limit for NRIs in India?

In other words, any NRIs whose taxable income in India is up to 15 lakh in the financial year will remain as NRIs if they don’t exceed the 182 stay period. This does not include income from foreign sources and the money you send home to India also known as inward remittances are not taxable.

Are You an NRI if you are leaving the country?

(Condition 2 is not applicable for Indians leaving the country for employment abroad or who is a crew on an Indian merchant ship. The 60 days is replaced by 182 days in such cases). So, you are considered an NRI if any of the above conditions are not satisfied.

What is the definition of an NRI?

The definition of an NRI is different as per the Income Tax Act and Foreign Exchange Management Act ( FEMA ). This is important because the Income Tax Act tells you how you will be taxed and FEMA decides where and how you can invest as an NRI.

During FY 2020-21, many NRIs — who earn income in a foreign country, pay taxes and reside there — had to stay back in India for 182 days (six months) or more due to lack of commercial flights, an illness or other unforeseen circumstances.

Can NRI make money India?

An NRI’s income which is earned or accrued in India is taxable in India. The income earned outside India by an NRI is not taxable in India. Interest earned on NRE and FCNR savings and fixed deposit accounts is tax-free in India. However, interest earned on an NRO account is taxable.

How much tax does an NRI pay in India?

When NRIs invest in certain Indian assets, they are taxed at 20\% on the income earned. If the special investment income is the only income the NRI has during the financial year and TDS has been deducted, then such an NRI is not required to file an income tax return.

When are you considered an NRI?

So, you are considered an NRI if any of the above conditions are not satisfied. The budget 2020 presented by the Finance Minister in February proposed the number of days to determine resident status to be reduced from 182 days to 120 days for all NRIs.

How to invest in mutual funds as an NRI?

For example, to invest in mutual funds, NRI needs to open an NRE or NRO account and your tax liabilities in such investments will be decided by your residential status. Read more on bank accounts for NRIs. For tax purposes, under the Income Tax Act, you are a resident of India if (any one of the two conditions):

Do rnors have to pay taxes in India?

Therefore, as an RNOR, you don’t have to pay taxes in India on your foreign income, just like the NRIs. It is best if you plan your return to India so that you can retain the RNOR status for more years. This provision is also not applicable for OCI (Overseas Citizen of India) cardholders and foreign nationals.