Do I owe NRI tax on excess per day allowance that I have saved?
Which income of NRI is taxable in India?
NRI or not, any individual whose income exceeds Rs 2,50,000 is required to file an income tax return in India.
How can I avoid tax on my NRO account?
Any income that is earned by an NRI from running a business enterprise in India is taxable by the Indian government. The income earned from fixed deposits as well as savings accounts that are held at Indian banks are taxable as well. Interest earned from FCNR and NRE accounts are entirely exempted from taxation.
How can NRI save tax in India?
NRIs have many sources of income that are exempt from Income Tax altogether. These are: Interest earned on Foreign Currency Non-Resident (Bank) [FCNR(B)] Deposits and Non-Resident Non-Repatriable [NRNR]. Interest on notified bonds and savings certificates issued by the Government of India.
How can double taxation be avoided on foreign income in India?
Section 91 of the Income Tax Act, 1961 provides for unilateral relief against double taxation. According to the provisions of this section, an individual can be relieved of being taxed twice by the government, irrespective of whether there is a DTAA between India and the foreign country in question or not.
What’s the penalty for keeping savings accounts and deposit accounts as an NRI?
There is no specific penalty provided for not converting an ordinary savings account into a non-resident ordinary account.
Is money transfer from NRE account to savings account is taxable?
Benefits of NRE account
Exempt from Taxes: The interest earned on the principal amount in an NRE savings account is tax free. Free and easy transferability: If you wish, you can transfer both the principal amount and the interest from an NRE account to an account in a foreign bank without any restrictions.
How much money can I transfer to my NRE account?
Send as much money you want: The Foreign Exchange Management Act (FEMA) does not specify any limit on the amount of money you send to a NRE account. However, this income needs to be earned legally in your country of residence. If you are transferring very high amounts you may be asked to explain your source of funds.
Can NRI maintain savings account in India?
As per RBI Regulations, a Non-Resident Indian (NRI) cannot open and operate a regular resident Savings Account and further, any account should be converted into NRI Account by the bank before one gets NRI status.