So, you are an NRI residing outside India and earning Income from outside India, but you have your resources in India. However, because you are staying outside the country, you are not aware of the rules that are applicable to you.
To help you with all the hassle, here are the rules that you need to consider being an NRI:
1) An NRI has to pay tax on any income that accrues or arises in India or is received in India, like salary received in India, rental income, interest income from fixed deposits or saving bank accounts and capital gains on assets sold in India are taxable. If the income of an NRI is more than the basic exemption limit for the year, he or she is liable to file return in India. Also, to claim tax refunds, or to carry forward losses to future years, NRIs have to file return.
4) If an NRI returns to India and turns Ordinary Resident Indian for a particular year, then the person will have to disclose all the foreign assets and foreign income in the tax return. There are stringent penalties under the Undisclosed Foreign Income and Assets Bill, 2015 for not doing so. Such income will henceforth not be taxed under the Income Tax Act but under the provisions of this new legislation on unaccounted money.
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