Is TDS applicable to NRIs?

How to calculate TDS for NRI?

Since the plot qualifies as a long-term capital asset (held for more than 24 months), the applicable TDS rate will be 20%, along with the applicable surcharge and cess.

What is the new rule for NRI in India?

The 60-day rule is now replaced with a 120-day threshold. Under the new rule, an NRI or PIO earning over INR 1.5 million (US$17,213.6) in India will be classified as RNOR if they: Stay in India for 120 days or more in a tax year. Have stayed in India for 365+ days in the past four years.

Who is eligible for 2% TDS?

Rate of TDS : TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh ifty thousand rupees.

Are all 5 years FD tax free?

Are 5-year FDs tax-free? No, the interest earned on a 5-year FD is taxable. However, there are specific tax-saving FD schemes that offer tax benefits under Section 80C of the Income Tax Act.

Is it illegal for NRIs to have savings accounts in India?

Yes, while there is no direct penalty for not declaring NRI status, there are serious financial and legal consequences if you fail to convert your savings account. As per FEMA regulations, it is illegal for NRIs to continue holding a regular resident savings account.

How to avoid TDS on NRO account?

You cannot avoid paying the income tax return on the interest income for your NRO FD scheme. However, India has a Double Tax Avoidance Agreement (DTAA) with over 75 other countries globally. If you reside in any one of these countries, you can benefit from the provisions under DTAA.

Is inr ₹7 lacs income tax-free in India?

With the recent changes in the Indian Income Tax Act, it's now possible to pay zero tax on a salary of up to Rs. 7 lakhs. To pay zero tax on a 7 lakh salary using the old tax regime, maximize deductions: Claim Tax Rebate under Section 87A.

What is the 90% rule for non-residents?

What is the 90% Rule? In a nutshell, the 90% rule is simple: if 90% or more of your worldwide income is from Canadian sources in the tax year, you're eligible for non-refundable tax credits reserved for residents.

How do I avoid 20% tcs on foreign remittance?

To avoid the 20% TCS on foreign remittances, make sure your total remittances do not exceed Rs. 10,00,000 in a financial year. Also, choose the correct transfer purpose code, as some categories like education funded by specified loans and medical treatments have lower TCS rates (5% or nil).

Can I transfer 20 lakhs through online?

Transfers can be made in multiples of Rs 2 lakh, up to the chosen TPT limit, with a maximum of ₹50 lakh. Security Measures: For security reasons, transfers to newly added beneficiaries are restricted to ₹50,000 in total, whether in full or in parts, during the first 24 hours after the beneficiary is added.

How to transfer money from Germany to India?

To send money from Germany to India, use online services like Wise, Remitly, Xe, or Profee for direct bank transfers, or providers like Western Union for cash pickup/bank deposit/mobile wallet options, needing recipient's bank details (IFSC code) or phone for UPI, with options for speed, cost, and delivery methods like bank deposit or cash pickup. The general steps involve creating an account, entering recipient info (name, bank, IFSC/UPI), choosing payment (bank transfer, card), and confirming the transaction. 

What are the TDS rules for NRIs in India?

TDS Rates for NRIs

• 30% for interest earned on non-resident ordinary (NRO) accounts and deposits.
• 10% for long-term capital gains (LTCGs) on equities.
• 15% for short-term capital gains (STCGs) on equities.
• 30% for STCGs from debt (non-equity) mutual funds.
• 20% for property sale (based on the sale value)
• 30% for rental income.

Do NRIs have to pay tax on FD in India?

As long as you are NRI, the interest earned by you on the NRE FD is exempt from tax. However, if you have returned to India, you should inform the bank about your NRE account and make a request to re-designate your account as a resident foreign currency (RFC) account.

Does NRI need to file a tax return in India?

As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.

Is TDS refundable for NRI?

Most NRIs do not realise that even if their final tax liability is lower, the TDS is deducted at fixed high rates. NRIs can claim a full or partial TDS refund by filing ITR for AY 2025 26, even if no tax is actually payable.

What if TDS is not deducted?

Levy of Interest:

Any individual who is liable to deduct TDS but fails to deduct it wholly or partly, or does not pay it to the government, will be subject to pay interest. The interest rate is: One percent per month or part of a month on the TDS amount from when TDS was to be deducted.

What is the procedure for TDS payment by NRI?

The PAN of the NRI seller should submit Form 49B. Deduct TDS at the correct rate, either as per the Finance Act or the DTAA, whichever is more beneficial to the payee. Deposit the deducted tax by the seventh of the following month, using Challan ITNS-281 through an authorized bank or the e-payment portal.