Income-Tax liability in India for an NRI :- NRI Income Tax Return In India
A non-resident is liable to pay income-tax on the total income of a particular year, derived from whatever source, which
(a) is received or is deemed to be received in India in such year by or on behalf of such persons, or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year.
However, it may be noted that
(1) Only Indian income is liable to income-tax in India in the case of a non-resident person,
(2) There is no income-tax in India on a foreign income merely because it is remitted to India during that year,
(3) In the case of a person who is resident but not ordinarily resident in India ,no Income-tax is payable by him on the income which accrues or arises to him outside India, unless it is derived from a business controlled or profession set up in India, and
(4) A resident and ordinarily resident person is liable to pay income-tax in India on his total income.
Income continues as an income to have accrued in India :-
The following are some of the instances when the law construes an income to have accrued in India :-
1) Income from business arising through any business connection in India,
2) Income from property if such property is situated in India,
3) Income from any asset or Source is in India,
4) Income from salaries if the same is earned in India: rendering of services in India amounts to earning the income in India,
5) Income from salaries payable by the Government to a citizen of India even though the services are rendered outside India,
6) Income from dividend paid by an Indian company even if the same paid outside India,
7) Income by way of interest payables by Government or by any other person in certain circumstances,
8) Income by way of Royalty if payable by Government or by any other person in certain circumstances,
9) Income by way of fees for technical services if such fees is payable by the Government or by any other person in certain circumstances.