Unlocking Tax Secrets: What Every NRI Must Know About India's New Income Tax Rules

Non-Resident Indians (NRIs) must stay informed about India's evolving income tax regulations. Recent changes stipulate that NRIs can be classified as non-residents if their stay in India is below 120 days, regardless of income. Those earning over ₹15 lakhs and staying between 120-182 days may face higher tax rates on their India-sourced income. This shift increases compliance burdens, especially for high-income earners.

The Non-Resident Indians are taxed in India on the income earned or accrued in India. This includes the salary received for services rendered in India, rental income from properties located in India, capital gains from the transfer of Indian assets, and interest earned on Non-Resident Ordinary accounts. On the other hand, income earned outside India is generally not taxable for NRIs. It's important to note that interest on Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) accounts is exempt from tax. 

Source: The Economic Times