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Oct 03, 2023
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How are NRIs taxed: 8 questions on residency status, taxable income, deductions and exemptions, ITR forms
To know if you, as an NRI, are supposed to pay tax in India, the first step is to determine your residency status for taxation purposes in the previous year, and whether your income falls in the taxable bracket. If you are a resident, you will have to pay tax for income earned in India and abroad, but as an NRI you don’t pay tax for foreign income. Here’s how to find out about your residency status, taxable income, deductions and exemptions available, and the ITR forms you need to use.
Q.Is the income that has been earned abroad taxed for NRIs in India?
No, any income earned abroad is not taxable in India for NRIs. “Section 9 of the Income-tax Act governs which income accrues or arises in India. As per this, foreign income for NRIs is exempt, barring some special cases,” says Shubham Agrawal, Senior Taxation Adviser, TaxFile.
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