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Tax Laws For This Fiscal

Intro: At what rate is a Non-Resident Indian (NRI) taxed in India? Under what conditions is tax payable and when? As an NRI, do I receive any tax benefits? How do I pay my taxes in multiple countries? Read on to know the answers to these questions and more….

When you have to deal with multiple tax jurisdictions, it can sometimes be a daunting task to keep up with tax laws. So if you are an NRI, here is some of the basic but crucial information that you need to be aware of regarding filing your returns in India.

To begin with, keep in mind that NRI’s are only taxed on income that is earned by them in India.As an NRI, taxes are payable for FY 2011-12/2012-13 when you are subject to these conditions:

-Your taxable income in India during the course of FY 2011-12 was above the exempted limit of INR 1.8 lakh

– Your taxable income in India during the course of FY 2012-13 was above the basic exemption limit of INR 2 lakh

Income tax rates for assessment year 2013-14 and Deadlines

The following tables contains the income tax rates for NRIs for the assessment year 2013-14, culled out from income tax rules for 2013. As in the case of resident Indians, you are required to pay tax according to the income tax slabs 2013. 

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Provisions for incoming NRIs:

If you have lost your NRI status, you are not subject to tax on the total income you earn abroad for 2 years, if you satisfy any of these conditions:

  1. You were in India for no more than 729 days during the previous 7 financial years or
  2. You qualified as an NRI for 9 out of the 10 previous financial years.

Double Taxation Avoidance Agreements (DTAA)

The Government of India has entered into Double Taxation Avoidance Agreements with around 80 other nations. In case you reside in one of these 80 countries as an NRI, you will receive the following benefits:

  • Pay taxes on your global income in one of the countries in which you reside. The proof of tax paid in that country will be acceptable in the other.
  • File your returns both abroad and in India and use the same paperwork as proof of tax paid in either.
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