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Q: Is salary received in NRE account taxable?

A: Remittance made in foreign currency to NRE account cannot be considered as income received in India. Income earned by the NRI is not taxed at every point of receipt.

Q: Do I have to pay taxes on money earned overseas?

A: If you are an NRI and working in a foreign country, the rules for filing tax returns and paying taxes are generally the same. However, you may qualify to claim a foreign income exclusion.

Q: Is NRE account interest taxable in India?

A: Interest on NRE deposits is taxable for residents. For an NRI interest earned on NRE deposits is exempt from tax in India.

Q: Should NRI file income tax returns in India

A: NRI is not required to file income tax returns in India if he has no income arising in India. NRI should file ITR if the taxable income exceeds the basic exemption limit of Rs. 2.5 lakhs during a...

Q: Are fund units liable to the wealth tax?

A: No, units issued to overseas investors will not be treated as assets as defined under section 2(ea) of the wealth tax act, 1957 and hence will not be liable to wealth tax.

Q: What is the tax liability on redemptions?

A: Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer, will be treated as a long-term...

Q: Is FCNR interest taxable in India?

A: Interest on NRO account is taxable for NRIs, the tax is deducted at source at 30%. Interest on the NRE account and FCNR accounts are tax-free in India. But in a country like the US the tax levy on...

Q: Are fund units liable to wealth tax?

A: No. Units issued to overseas investors will not be treated as assets as defined under section 2(ea) of the Wealth-Tax Act, 1957 and hence will not be liable to wealth tax.

Q: Is interest income on RFC deposits taxable?

A: Interest income on RFC deposits is taxable and the exemption is available for returning Indians, subject to IT regulations.

Q: Is the indexation benefit available to NRIs?

A: Yes, if units are held for more than 12 months i.e. on long-term capital gains then indexation benefit is available to NRIs.