1. What is the Income tax liability of a NRI in India?
Following income earned by a NRI is liable to tax in India:
Any other income earned or received or deemed to be received in India is taxable in India.
Income deemed to accrue or arise in India.
Income other than the above is not taxable in India.
2. What is the income tax liability of RNOR in India?
Any other income received or deemed to be received in India by or on behalf of such RNOR is taxable in India.
Income deemed to accrue or arise in India.
Income which accrues or arises to him outside India from business controlled or profession set- up in India is taxable in India
3. What is the income tax liability of resident and ordinary resident (“ROR”) in India?
A person who is a resident and ordinary resident is liable to tax in India on the worldwide global income earned.
4. What is the provision in the Act to avoid double taxation of income in more than one country?
If an individual’s income is chargeable to tax in more than one country, the individual may claim benefit of Double Taxation Avoidance Agreement (if any existing). Where there is no DTAA, section 91 of the Act grants unilateral relief in respect of income which has suffered tax both in India and in a country with which no DTAA exists (i.e. doubly taxed income). The procedure for granting relief or deduction of income tax paid outside India shall be prescribed under the Act.
