Empowering NRIs through Smart Tax Planning

FAQs

• Are NRE and NRO account interests taxable for NRIs?

  Interest earned on a Non-Resident External (NRE) account is tax-exempt in India by an NRI. In contrast, interest on a Non-Resident Ordinary (NRO) account is fully taxable at the applicable income tax slab rates.

• Is it possible for NRIs to claim a refund if excess TDS has been deducted?

  Yes, NRIs can claim a refund for any excess TDS deducted by filing an income tax return in India. If the total tax liability is lower than the TDS deducted, the difference will be refunded.

• Can NRIs avoid double taxation on income earned in India?

  NRIs can avoid double taxation by utilizing the Double Taxation Avoidance Agreement (DTAA) between India and their resident country. The DTAA helps in claiming tax relief in one of the countries, either through the exemption method or the tax credit method.

• Can NRIs claim deductions under Section 80G for donations?

  Yes, NRIs can claim deductions for donations made to specified charitable institutions in India under Section 80G. The deduction may range from 50% to 100% of the donation amount, depending on the type of institution under the old tax regime.

• Are NRIs required to disclose foreign assets in their income tax return in India?

  If an NRI qualifies as a "Resident and Ordinarily Resident" (ROR) for tax purposes, they must disclose their foreign assets, including bank accounts, investments, and properties held abroad, in the income tax return.