What are Tax Implications of NRI?

PK Posted by: Praveen Kumar

• 16 September, 2025

3 Reply

The tax implications of an NRI from the Income from salary are

-If NRI gets any salaries from the services provided in India.

-Any form of salary received by an NRI in India.

-Income from rental property in India

-Capital gains earned on the transfer of assets located in India.

-If an NRI gets revenue from a fixed deposit.

-Getting Interest on savings bank accounts.

Tags : Tax Implications of NRI

Anika Nair 22 September, 2025
What is the taxable income for NRIs?
- SJ
  
  Shubham Jain 23 September, 2025
  
  The taxable income for the NRIs is:
  - Any income received from salary: If you are an NRI and you get a salary in India, then you will be taxed in India. However, the ambassadors' and the diplomats' income is exempt from tax.
  - Income from Property: If an NRI's income is generated through house property, then it is taxable in India. An NRI can claim a 30% tax deduction on the property and get benefits from the deductions from a home loan.
  - Rental Payments to an NRI: Any tenant who is living on a rent of the NRI property, then to the NRI owner must deduct the TDS at 30% when the tenant is paying rent.
  - Income From Other Sources: Interest earned from savings accounts or fixed deposits in an Indian bank account is taxable in India. However, the interest on NRE or FCNR account is tax-free.
Reply
Gauri Saxena 19 September, 2025
The tax slabs for the NRI on ba sis of their income are:
- Salary Income: Any income generated in India is taxable at income slab rates.
- Capital Gains Tax: The NRI is taxable on the capital gains at a 12.5% or 20% slab rate with surcharges and cess. It also depends on the period of holding and the nature of the capital asset.
- Rental Income: This is taxable in India, and an NRI can claim a 30% standard deduction on the municipal tax paid and the rental income.
Reply

Join The Discussion

Share Your Thoughts and Connect with Others.

Releated Topics

How to Avoid Tax on Sale of Property in India?

In India, you can avoid the tax on the property by reducing the tax scale and by the use of specific exemptions which are provided under sections 54, 54EC, and...
- 5 Reply
- 54 Views
What is the Penalty for Filing Tax Return Late?

If you file your Income tax return late, then under section 234F of the Income Tax Act, you have to pay the maximum penalty of INR 5,000 under section 139(1)....
- 5 Reply
- 58 Views
What are the Tax Implications for NRI?

An NRI is taxable on the following types of Income given below: Any income that he or she earns in India through any work or business that is in India,...
- 0 Reply
- 69 Views
What are Common Mistakes When Calming 87A?

Given below are some common mistakes made by the applicant when claiming 87A to avoid notices from the Income Tax department: Not filing the correct information: If the applicant is...
- 3 Reply
- 79 Views
What are the Disadvantages of HUF?

Here are some of the disadvantages of forming an HUF: It impacts the partition distribution to the HUFs. Have complex compliance. Only a limited number of persons can apply under...
- 2 Reply
- 73 Views
What is the Difference Between Section 54 and 54f?

Given below are some of the major differences between sections 54 and 54F: -Section 54 grants to calim a full exemption on the whole capital gains that have to be...
- 3 Reply
- 154 Views
What is 87A Rebate?

A rebate is a benefit in taxes which are provided to middle to low-income earners. It is only applicable to resident individuals who are earning income under the 10% slab...
- 3 Reply
- 140 Views
What Documents are Required for ITR?

To fill an income Tax return for the salaried employees, you need to submit the following documents given below: -You need to submit your valid PAN card -Provide a...
- 2 Reply
- 147 Views