What is the new rule of NRI in India?
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India's "new" NRI rules primarily revolve around changes to tax residency for high-income NRIs/PIOs, introducing a 120-day threshold (instead of 60 days) to become Resident but Not Ordinarily Resident (RNOR) if earning over ₹1.5 million in India, alongside ongoing FEMA rules for bank accounts and general visa/investment guidelines. These rules clarify who's taxed on global income vs. Indian income, especially for those spending significant time in India but still considered NRI.
What are the new NRI rules 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.
Is it mandatory to declare NRI status 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 long can you stay in India as an NRI?
Who is a Non-Resident in India? If you do not satisfy the condition laid out above for a person to be considered a resident in India - you will be considered a NON-RESIDENT INDIAN (NRI). Thus, if you stay in India for less than 182 days, you will be considered an NRI.
How to avoid TDS for NRI?
To avoid excessive TDS, meaning Tax Deducted At Source, NRIs can use tax-efficient strategies:
- Open NRE/FCNR accounts. ...
- Invest In Mutual Funds and NRI Plans. ...
- Invest In Indian Equities (PIS) ...
- Buy NRI Life Insurance (ULIPs) ...
- Apply For A PAN. ...
- Plan And File Taxes. ...
- Additional Tips.
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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 much money can NRIs keep in India?
As per NRI Foreign Currency Rules in India NRIs can carry up to US $5,000 in cash and US $10,000, including cash, traveler's cheque, etc. Anything above this limit must be declared before the customs department upon arrival. If the cash is in Indian currency, then only up to Rs 25,000 is allowed.
What is the new tax regime 2025?
The income tax slab rates under the new tax regime for FY 2025–26 are as follows: income up to ₹4 lakh is tax-free; ₹4 lakh to ₹8 lakh is taxed at 5%; ₹8 lakh to ₹12 lakh at 10%; ₹12 lakh to ₹16 lakh at 15%; ₹16 lakh to ₹20 lakh at 20%; ₹20 lakh to ₹24 lakh at 25%; and income above ₹24 lakh is taxed at 30%.
Can an NRI buy property in India?
NRIs can buy multiple residential and commercial properties without needing approval from the Reserve Bank of India (RBI). A primary benefit to owning property in India is a stable source of rental income.
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 happens if I don't convert my account to NRO?
In case you fail to convert your resident savings account to an NRO account there are penalties involved, including: A fine of up to three times the amount in your bank account; or. A fine of ₹2 lakh if the amount is not quantifiable.
What happens if I don't declare foreign income?
Failure to do so is tax evasion and can lead to jail time. Is a gift from a foreign person taxable?
What is the penalty for NRI?
As soon as your resident status changes to NRI, you need to convert your savings account into an NRO account. While there is no penalty for not declaring your NRI status, failure to convert your savings account can result in legal and financial complications.
Does NRI have 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.
How long can I maintain NRI status after returning to India?
Your NRI status is considered a NOR status for 2-3 years after you return to the country. After this, your status is that of a ROR and the taxation rules applicable to all resident Indians will be applicable to you as well.
How is 12 lakh tax-free?
The new regime is beneficial as there is zero tax liability for income upto Rs. 12 lakhs for FY 2025-26. Can you pay zero tax on Rs 12 lakhs salary ? Yes , You can pay Zero tax on Rs 12 lakhs salary by claiming deduction and exemption like HRA exemption , 80C deduction , Standard deduction , Housing loan interest etc.
What is the new NRI rule in India?
Latest Income Tax Rules for NRIs
They do not depend on the gender, age, or other specification of the individual. All incomes of NRIs are charged irrespective of any threshold value for TDS. Nominal deductions are not applicable on investment plan income, except under specific situations.
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.
Can I carry 2 lakh cash in a flight from India?
Likewise, there is no set limit on the amount of cash you can carry on a domestic flight, but if the cash is more than Rs 50,000, you may need to disclose its source. The I-T Department may investigate if you carry more than Rs 2 lakh in cash.
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.
Do non-residents have to pay taxes?
Whereas, if you are a non-resident for tax purposes, you are only required to pay tax on the income you earned in Australia. However, if you are a non-resident for tax purposes and have government debt, such as a higher education loan, you will be required to declare your worldwide income.
What is line 35000?
If you included 90% or more of your 2024 net world income in your net income, the allowable amount of federal non-refundable tax credits is the total from line 35000 of your return. If you were an eligible educator.
Can you have more than one country of residence?
Yes – this is called dual residence. In some situations, the 2 countries can have a double taxation agreement. This will decide: Which country you're regarded as resident in.