Académique Documents
Professionnel Documents
Culture Documents
Non-resident
individuals
Persons
Indian of
origin
Citizen of India
Provisions
concessionsrelating to Non-residents
are available to citizens of are relevant
India, for NRIs.
certain others Certain
to PIO
Non-resident Indian (NRI)
Under the Income Tax Act
Person of Indian
Origin
∙ A personor
parents shall
anybe
of deemed
his grandtoparents,
be of Indian origininifundivided
was born he, or either of his
India.
Indian Citizen
Staytax
in India
year in a
Intention
leaving of
India
Citizenship
SCOPE OF INCOME TAXABLE-NRI
Taxable
I ncome earned in India – accrued or
i arising
n India
Income deemed to accrue or arise in India Taxable
• CAPITAL GAINS
When there is a capital gain arising in India (Asset’s location is India), then the
Taxability will arise in India.
• OTHER SOURCES
Special provisions applicableto
resident Indians Non-
Applicable
∙ To investment income from specified assets and other long term capital
• gains. Applicable to foreign exchange assets
©2013
LimitedDeloitte Touche Tohmatsu India Private
Special provisions applicable to Non-resident Indians
Chapter XIIA
∙ ―foreign
purchased exchange
with,meansasset‖ means
or subscribed any
to in, specified asset
convertible which
foreign the assessee has acquired or
exchange;
∙ Specified asset
∙ Shares in an Indian company;
∙ Capital gains arising on the transfer of foreign exchange assets are exempt from tax if
∙ The asset transferred must be long-term capital assets
∙ Where
as thewould
above new asset is transferred
be considered to bewithin a 3long
taxable yearterm
period the long
capital gainsterm capital
in the gain
year of exempt
such
transfer.
NRI- SPECIFIC CHALLENGES
Tax residency certificates
❖ Regulations for issue by the
overseas country.
❖ Mismatch in financial years
❖ No clarity on when the
❖ document is to be produced.
Email: sawhneyaj@hotmail.com,
Website: http://www.nonresidents.in