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Raju (business)     13 August 2011

No income tax for nri??

Hi Experts,

 

Is the basic exemption limit of 1,80,000 rupees available for an NRI working in China?

 

The salary income is in China. Tax is paid in China for this part and return is filed in China.

 

The only income in India is 1) Rent income from house property 2) Interest from Bank Fixed Deposits 3) Long term capital gains on sale of shares or mutual funds. The sum of all (1+2+3) is less than 1,80,000 rupees.

 

a) Is it a must for the NRI to file tax returns in India? If yes, should it include China income also?

b) Shall the NRI submit form 15G / 15H to avoid TDS on Fixed Deposits?

c) Are the Long term capital gains on shares or mutual funds subject to TDS?

 

Best Regards,

Raju.



Learning

 2 Replies

Sanjeev (Lawyer)     13 August 2011

a) If the Income in China has already been taxed in China then it need not be included in the tax return filed in Inida.

b)15G/H shall only be submitted if the Gross Income from the three sources do not exceed the maximum amount chargeable to tax ie Rs 1,80,000.

c)LTCG are not taxed at the time of sale of shares but these are liable to tax so need to be included while computing the Total Income.

 

So if your total Income in India from the above three sources is more than Rs 1,80,000 than you are liable to file return.

India has a Double taxation avoidance treaty with China so if the Income from China is taxed there so it would not be taxed in India.

1 Like

Raju (business)     13 August 2011

Thank you very much Sanjeev!!


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