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Latest Questions

Q: What are the tax exemption incomes for NRIs?

A: * Interest on NRE & FCNR(Foreign Currency Non- Repatriable) account * Interest on government-issued savings certificates, notified bonds * Dividends from shares of domestic companies * Long term...

Q: Why ITR should be filed by NRI?

A: * If the Tax deducted at source is more than the actual tax liability of the NRI, then refund can be claimed by the NRI only after filling return along with interest. * If the NRI has incurred any...

Q: What is the tax treatment for income generated from property selling or renting for NRI?

A: Income generated by NRI is taxed in the same way as residents. On the sale of property, it will be capital gains tax which will be at normal rates (i.e. up to 30%) if the asset is held for less...

Q: Is mutual fund dividends tax-free for NRIs?

A: Dividends are tax-free in the hands of the NRI investors. However, in case of dividends received from debt or hybrid debt-oriented mutual funds (MIPs), the mutual fund houses pay dividend...

Q: How and when tax is deducted (TDS) at source in case of NRIs?

A: * Tax is deducted at source (TDS) @17.7675% in case of short term capital gains arising out of equity or equity oriented mutual funds. * Tax is deducted at source (TDS) @35.535% in case of short...

Q: I get rental income in India and file tax returns in India So can I show the tax returns to the bank and would the bank agree to transfer rental income to my NRE account and open FD's?

A: Bank may credit the current income like rent, dividend, pension, interest etc., of NRIs to their NRE accounts provided they are satisfied that the credit represents current income of the NRI...

Q: What type of services can be provided by the resident individual to his/her close relatives?

A: A resident may make payment in rupees towards meeting expenses on account of boarding, lodging, and services related thereto or travel to and from and within India of a person resident outside...

Q: Whether dividend income earned by a non-resident individual or a foreign company from an Indian company is taxable?

A: The dividend income earned by a non – resident individual or foreign company from an Indian Company is exempt from tax in India as the company distributing the dividend is liable to pay dividend...

Q: How is taxable income determined in the case of non-resident?

A: In the case of a non‐resident individual and a foreign company, the income which is received or is deemed to be received in India or income which accrues or arises or is deemed to accrue or arise...

Q: Is interest earned on NRE and NRO deposit account taxable?

A: The interest earned on deposits in an NRE account is exempt from tax in the hands of the NRI while the interest earned on deposit in the NRO account is taxable in India.