Income Tax for NRI - What is Non-Resident Indian (NRI)? Taxable income with Web Online CA

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Income Tax for NRI - What is Non-resident Indian (NRI)? Taxable income

Filing income tax return is the responsibility of every taxpayer. Taxes paid by taxpayers contribute significantly to the development of the country. According to the Income Tax Act, 1961, NRI tax is applicable to people who are earning income while living outside their country. In this article you will know about Non-resident Indian (NRI).

What is Non-resident Indian (NRI)?

NRI stands for Non-resident Indian. It refers to persons of Indian origin or nationality who live outside India. They may live abroad for various reasons such as work, education or personal choice.

Determine your Residential Status

Determine your Residential Status according to this:

You qualify as an Indian resident for a financial year if you meet any of the following criteria:

If you stay in India for 182 days and more during the financial year.

If you have spent 60 days or more in India in the previous year and have been resident in India for 365 days or more during the four years preceding the previous year.

The first condition applies only to Indian citizens working abroad or serving as crew members on Indian ships, indicating residence if they spend a minimum of 182 days in India.
If a person does not fulfill any of the conditions mentioned above then he is considered non-resident.

Taxable income for an NRI

Read the below categories of taxable income for NRIs.

Income from Salary:

Salary income is taxed in India under two situations for NRIs.

1. If your salary is received in India.

2. If your salary earned in India.

Income from house property:

Revenue generated from property located in India is subject to taxation for non-resident Indians (NRIs). Income is computed similarly to residents.
like:

NRIs are eligible to claim a 30% standard deduction.

Property taxes can be deducted .

Advantage of interest deduction on home loan.

NRIs can claim a deduction on principal repayment under Section 80C.

Income from Capital Gains:

Capital gains taxation in India applies to any profits derived from the transfer of capital assets located within the country.

Income from Other Sources:

Interest earned from fixed deposits and savings accounts maintained in Indian banks is subject to taxation in India. However, interest accrued on NRE and FCNR accounts remains exempt from taxes, while interest earned on NRO accounts is fully taxable.

Which investments qualify for special treatment?

Income from the following Indian assets earned in foreign currency:

Shares in Indian companies, whether the company is public or private.

Deposits with the banks, public companies.

Any type of security of the Central Government.

Such other properties of the Central Government as may be specified for this purpose in the official gazette.

Debentures offered by a publicly listed Indian company (not private)

Under Section 80, No deductions are permitted when calculating investment income.

Income Tax slab for Non-resident Indian (NRI) FY 2023-24

Income Tax Slabs for the New Tax Regime (default) FY 2023–24:
 

Tax Slab Income Tax Rates
Up to Rs. 3,00,000 Nil
Rs. 300,001 to Rs. 6,00,000 5%
Rs. 6,00,001 to Rs. 900,000 10%
Rs. 9,00,001 to Rs. 12,00,000 15%
Rs. 12,00,001 to Rs. 1500,000 20%
Above Rs. 15,00,000 30%
FAQ's

What are the advantages of e-filing?

E-filing is a fast, convenient, secure, and sometimes free way to file taxes. E-filing is processed quickly, even if you wait until the last submission date.

If you file electronically and direct deposit your refund, the funds will be transferred to your bank account within a few days of receiving and processing your return. If you have a balance, you can pay by direct debit. And with e-filing, you don't have to worry about making mistakes, as errors are corrected immediately.

How does Online Income Tax Return Filing work in India?

Taxes imposed on the income of individuals, corporations, and other legal entities are formally called income taxes. There is no uniform tax rate for all income ranges, and it varies by industry and region, and in some cases, lower incomes are eligible to pay income tax.

There are two types of taxes: direct and indirect. A direct tax is a tax that is collected directly from the taxpayer, whereas an indirect tax is a third-party tax such as a value-added tax.

An Indian Income Tax Return (ITR) is a form for filing income and tax details with the Income Tax Authority. The tax eligibility of the taxpayer is calculated based on income. Sometimes, taxpayers are bound to get refunds from the Income Tax Department if their income tax returns show excess tax paid during the previous year.

All registered taxpayers with taxable income must file their Income Tax Returns online. However, people over 80 who do not have income from regular business or profession can also file paper returns.

 What is a GST return, and how many GST returns are filed?

GST Return is a document giving details of income that a registered GST dealer must submit to the Government of India's tax authorities. This return confirms the payment of the registered GST dealer and calculates the tax liability.

GST returns are filed monthly or quarterly, or annually by GST-registered dealers depending on the nature of the business and whether there is an option to file returns monthly or quarterly. 25 GST returns should be filed in a year.

Taxpayers who have opted for Quarterly Return and Monthly Payment Plan (QRMP) must file eight quarterly returns and one annual return. Hence, 9 GST returns are to be filed in a year.

What is the role of a Digital Signature Certificate?

A certificate serves as proof of a person's identity for a specific purpose. For example, a driving license identifies someone legally driving in a particular country. Similarly, a digital certificate may be presented electronically to identify a person, access information and services online, or digitally sign certain documents.

A licensed Certificate Authority (CA) may issue a digitally signed certificate. Certificate Authority (CA) means a person licensed under section 24 of the Information Technology Act, 2000 of India to issue Digitally Signed Certificates.

How do I register for MSME Udyam Online in India?

MSME stands for Micro, Small, and Medium Enterprises. There was no clear definition of MSME till the Atma Nirvana package was announced by the Finance Minister in May 2020. These companies were classified based on manufacturing and service industries. But after the Atmanirbhar package, this distinction between manufacturing and service industries has disappeared. The classification of these companies is currently based on investment and sales. Earlier, this process was known as Aadhar Udyog Registration.

MSMEs can register through MSME Govt Portal only. Users can register for a new MSME through this portal or re-register an already registered Udyami Aadhaar Memorandum Part II (EM-II) or Udyog Aadhaar Memorandum. The Ministry of Small and Medium Enterprises manages and operates this portal, so it is safe and reliable.

What are the benefits of having a FOSCOS/FSSAI License/Registration?

Consumers are becoming more aware of food quality, standards, and hygiene in this information age. It is more convenient for online grocery stores to be personally FSSAI certified before buying anything from outside, as it provides better assurance of food quality without contamination or foreign ingredients.

Legal Benefits: Most people still believe that getting a food license is a slow and challenging process with lots of paperwork and paperwork. There is also a need for clarification that getting a food license costs much money.

Use of FSSAI Logo: FSSAI licenses only those businesses that meet minimum hygiene standards. If you have a food sales license, you can display it on menu cards, pamphlets, packaging bags, etc. The FSSAI logo on the food will show the products in the competition.

Business expansion: All newly established companies want to expand their operations to all other places and explore new markets and consumer bases.

Customers should feel comfortable buying new products as they set up their business in recent locations. A valid food license also makes expanding your business to new places or opening new stores easier.

Quality upgrade: An FSSAI License/Registration facilitates the provision of high-quality food products and improves the overall performance of your food business.

What is a Store or Establishment License?

A shop and establishment license is a legal document issued by a state government that allows a business owner to operate legally. This license indicates that the owner has complied with the labor laws, welfare rules, and safety rules related to the store or establishment. Employers can also avail of benefits provided by the government, such as employee wages, insurance, and sick leave.

Who should apply for a Stores and Facilities License?

A store and convenience license is a mandatory registration that all businesses operating at a physical location must obtain. The specific requirements for obtaining a license may vary depending on the state in which your business is located. Generally, companies such as stores, restaurants, hotels, cafes, theaters, and other commercial establishments operating in physical locations must apply for a store and establishment license. Businesses that work from home offices or coworking spaces may also require this license. Standard documents required to obtain a store and facility license include proof of address, identity, and PAN card. Getting a license usually involves completing an application and submitting the required documents to your local municipal or state labor office.

Why is it essential to obtain a trademark registration?

Public Notice of Trademark: A registered trademark is a visible expression of ownership of a brand. Trademark registration also establishes a brand's reputation and lets consumers know that the products or services associated with the trademark meet the brand's quality and control standards. It is an acronym that helps consumers make purchasing decisions by quickly identifying and differentiating their products and services from those of their competitors.

National Validity and Ownership Estimates: Trademark registration applies nationwide and provides a presumption of trademark validity and trademark ownership. Under federal trademark law, all registered trademarks are deemed to meet all critical USPTO registration requirements and have actual requests with the trademark registration owner.

Resistance Against Trademark Infringement: Trademark registration allows us to stop competitors from infringing our trademarks and tells the police how our brands are being used. You can ask the infringer to stop using your marks or use the social media provider or online marketplace to remove the infringing content.

What is company registration?

Before filing for company registration, let us understand the concept of a company. What is a company? A company is a business entity having at least two directors and employees/shareholders. It is a legal business entity established under the Companies Registration Online Rules established under the Companies Act 2013.

So how do you register a company in India? Although the process is simple, it requires the assistance of a company registration service provider. Web Online CA provides end-to-end support, guiding you through every step required to register your company in India.

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