Welcome to Ahuja & Ahuja Chartered Accountants, the leading NRI Taxation service provider in Delhi/NCR, India. As a non-resident Indian (NRI), it is essential to understand the tax implications in India. We have been providing expert NRI tax consultancy services for over two decades, with a focus on delivering personalised solutions for our clients.
NRI Taxation in India
As an NRI, it is important to understand that tax liability in India is based on residential status and not on nationality or domicile. Our team of expert chartered accountants can assist you in determining your residential status under domestic law and tax treaty. We also provide tax advisory services for salary income, capital gain transaction and other tax matters that concern NRIs.
Investment and Deductions
Just like residents, NRIs can avail tax deductions under Section 80C of the Income Tax Act up to a maximum of Rs. 1.5 lakhs. Our team can guide you on common investment options to claim deductions such as life insurance premium payments, repayment of principal on housing loans, tuition fee payments, and investment in Equity Linked Savings Scheme (ELSS) of mutual funds.
Income Tax deductions available for NRIs under section 80C
NRIs have access to the same tax deductions as residents under Section 80C, with a maximum limit of Rs. 1.5 lakhs. Some popular investment options for claiming these deductions include paying life insurance premiums, repaying principal on housing loans, paying children’s tuition fees, and investing in Equity Linked Savings Scheme (ELSS) mutual funds. NRIs can claim a tax deduction for life insurance premiums paid on policies for themselves, their spouse, or children (minor or major), as long as the premium doesn’t exceed 10% of the capital sum assured.
Additionally, NRIs can claim deductions for instalments that go towards the principal repayment of housing loans, but not towards interest payments. Educational tuition fees paid by NRIs for their children’s full-time education in Indian institutions are also eligible for deductions, with a maximum of two children. Finally, NRIs can invest in ELSS mutual funds and claim deductions under Section 80C.
NRI Taxation in Mutual Funds
Our team has extensive experience in providing NRI taxation services for mutual funds. We provide assistance in determining the taxability of mutual fund investments and ensure that all compliances related to mutual fund investments are met. We can also guide you on investment options to minimise tax liabilities in mutual funds.
NRI Conditions in Income Tax
Our team provides expert guidance on NRI conditions in income tax. We offer services such as counselling on compliance and procedures to be followed by NRIs and expatriates seconded on an international assignment to India. We can also assist you in income tax scrutiny and assessments/audits.
NRI ITR Filing in India
We understand that NRI income tax return filing can be a complicated process. Our team can assist you in preparing and filing your India tax return and provide necessary advice on the mechanics of elimination of double taxation. We also provide certification services under FEMA and Income Tax and assist in repatriation of money from India.
At Ahuja & Ahuja Chartered Accountants, we have extensive experience in providing NRI taxation services. Our expertise in tax matters, coupled with our personalised responses, has earned us satisfied, long-term clients spread across the globe. Contact us today for expert NRI taxation services.
Frequently Asked Questions
Who is an NRI?
An NRI is an Indian citizen who satisfies neither of the following conditions in a particular financial year: (a) stays in India for 182 days or more in the relevant financial year, or (b) stays in India for 60 days or more in the relevant financial year and for 365 days or more in four previous years immediately preceding that financial year.
How is residential status relevant for the levy of Income Tax?
An individual’s taxability in India depends on their residential status for the relevant financial year as per the Income Tax provisions. If an individual’s status is ‘resident,’ their global income will be taxable in India. If their status is ‘NRI,’ only their Indian income will be taxable in India. Examples of Indian income include salary received in India, compensation for service rendered in India, capital gains on transfer of asset situated in India, income from house property situated in India, and interest on fixed deposits or savings bank account in India. Interest earned on an NRE account and FCNR account is tax-free. But, interest on an NRO account is taxable in the hands of an NRI in India.
Is an NRI liable to file an Income Tax return in India?
Yes, an NRI whose total Indian income during a particular financial year exceeds Rs. 2,50,000 is required to furnish an Income Tax return in India. Also, if any tax has been deducted at source on any income of the NRI, and if it is more than their actual tax liability, then they can claim a refund along with interest only after filing their return of income.
Does an NRI also have to pay advance tax?
Yes, if an NRI’s tax liability is expected to exceed Rs. 10,000 in a financial year, they must pay advance tax. Interest under Section 234B and Section 234C will be levied if advance tax is not paid.
Which investments are not allowed to NRIs under section 80C?
Some investments under Section 80C that are not allowed to NRIs are investment in Public Provident Fund, investments in National Savings Certificates (NSCs), deposits in the post office 5-year deposit scheme, and