NRI’s LOVE TO LOOSE MONEY.
The recent statistics from RBI confronts the amount of foreign inflows contributed by NRIs are significant and are growing, most of these inflows are invested in deposits, bonds, shares and mutual funds or invested to buy a property. The reason could be higher returns when compared to their residing country.
More than 50% of the NRI’s are investing their hard earned money in India to generate additional income or to buy assets. But what is the absolute return on their investments and assets. The meaning of absolute return is earnings after tax deduction.
Any earnings paid to an NRI on his investments or assets in India are after deducting a tax of 30% at the source.
- NRI getting a rent of Rs. 300000/- per year is deducted with Rs. 90000/- as tax by his tenant at the source.
- NRI earning a interest of Rs. 200000/- from his NRO fixed deposit is deducted with Rs 60,000/- as tax by the bank.
And in many of the cases, the deducted amount is not claimed by NRI’s. Either because of awareness or resource unavailability for filing their tax returns. Filing tax returns by NRI’s can claim that excess tax deduction in the form of refunds.
The exemptions, deductions and the tax slabs for NRI’s are quite similar to that of the resident Indians. Earnings below the tax slab need not file, but the filing of tax returns will help NRIs to claim the excess tax deduction as refunds.
Furthermore to refunds, NRIs can get a tax credit under DTAA (Double taxation avoidance agreement). When an NRI wants to repatriate, income earned or sale proceedings of inherited property. The repatriated amount will add to his total income and will be taxed at a higher rate. By filing their tax return in India for the income, NRI does get a benefit of DTAA and will either get a tax credit or exempted wholly for the money repatriated from India.
With the availability of tax solutions by experts through online, it is simple for NRIs to file their tax returns. Start filing your tax return’s now.
For more information on NRI taxation and filing please visit…www.etaxcorner.com