Which Income Is Taxable For NRIs?

Are NRI's Foreign Earnings Taxed in India?

No, income earned abroad is generally not taxed in India for NRIs. According to Section 9 of the income-tax Act, foreign income is exempt for NRIs, with only a few exceptions.

What Incomes Are Taxed for NRIs?

For NRIs, incomes taxable in India include those arising in the country or received here, as per the income-tax regulations.

The list

Incomes for NRIs are generally tax-free if earned outside India, except for those originating from a business or profession managed from an Indian setup. Here's what's taxable for NRIs.

1. Salaries received for services provided in India are considered taxable income.

2. Income from residential property in India, whether rented or vacant, is subject to taxation.

3. Any capital gains from the sale of property or assets in India are subject to taxation.

4. Income from deposits, such as interest on bank savings accounts in India, is considered taxable.

5. Interest on NRO (Non-Resident Ordinary) accounts is taxable, while NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) interest remains exempt.