Question 1

What income is taxable for NRIs in India?

Accepted Answer

Only Indian-sourced income is taxable for NRIs: salary received in India, rental income from Indian property, capital gains on Indian assets (property, shares), interest from Indian accounts (NRO), dividends from Indian companies, and business income if business is in India.

Question 2

What is DTAA and how does it help NRIs?

Accepted Answer

DTAA (Double Taxation Avoidance Agreement) prevents the same income from being taxed in both countries. India has DTAA with 95+ countries. You can either get exemption in one country or claim tax credit for tax paid in other country. Submit TRC and Form 10F to claim benefits.

Question 3

Which ITR form should NRIs file?

Accepted Answer

ITR-2: If you have salary, multiple house properties, capital gains, or foreign income. ITR-3: If you have business/professional income. ITR-4: If opting for presumptive taxation (44ADA). NRIs cannot file ITR-1. All ITRs must be filed online.

Question 4

Do NRIs get basic exemption of Rs 2.5 lakh?

Accepted Answer

Yes, NRIs get the same basic exemption as residents. Under new regime: No tax up to Rs 3 lakh, under old regime: No tax up to Rs 2.5 lakh (Rs 3 lakh for seniors). However, NRIs cannot claim rebate under Section 87A.

Question 5

How do NRIs claim TDS refund if excess TDS was deducted?

Accepted Answer

File ITR declaring all income and TDS. If TDS exceeds actual tax liability (due to deductions, DTAA benefits, or lower income), refund will be processed to Indian bank account. Apply for Lower TDS certificate (Form 13) for future to reduce TDS at source.

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