Amath Investment

NRI Taxation

An Indian Citizen who stays abroad for employment/ carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.

Liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.

NRI Taxation
SNo.	Rules
1	Who is Non-Resident
2	Taxability of Non-residents in India
3	General and special rates of tax
	1. GENERAL RATES
	2. Tax on dividends, royalty and technical service fees in the case of foreign companies.
	3. Tax on income from units purchased in foreign currency or capital gains arising from their transfer.
	4. Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
	5. Tax on income from Global depository receipts purchased in foreign currency or capital gains arising from their transfer.
	6. Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer.
	7. Tax on non-resident sportsmen or sports associations.
	8. Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds.
4	Special Provisions for Non-Resident Indian
	1. Tax on investment income and long-term capital gains.
	2. Capital gains on transfer of foreign exchange assets not to be charged in certain cases.
	3. Special provision for computation of total income of non-residents.
	4. Definitions.
	5. Return of income not to be filed in certain cases.
	6. Benefit under Chapter to be available in certain cases even after the assessee becomes resident.
	7. Chapter not to apply if the assessee so chooses.
5	Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents.
6	Special provision for computing income by way of royalties, etc., in case of non-residents.
7	Special provision for computing profits and gains of shipping business in the case of non-residents.
8	Shipping business of non-residents.
9	Deduction of head office expenditure in the case of non-residents.
10	Computation of income from international transaction having regard to arm’s length price.
11	Transactions not regarded as transfer.
12	Incomes not included in total income
13	Avoidance of income-tax by transactions resulting in transfer of income to non-residents.
14	Avoidance of tax by certain transactions in securities.
15	Overriding effect of tax treaties
16	Relief from Double Taxation where no treaty exists.
17	Recovery of tax in respect of non-resident from his assets.
18	Provisions under Income-tax Act