As NRIs permanently return to India, their tax status is changed, impinging on their tax liabilities. To be more precise, it is a move from being taxed only on Indian-sourced income to probably being taxed on global income.
Therefore, it becomes extremely necessary for returning NRIs to understand these changes fully so as not to fall foul of Indian tax laws and incur the risk of penalties.
Key Tax Considerations for Returning NRIs
Upon returning to India, NRIs should be aware of the following tax implications, especially NRI income tax exemptions.
- Residential status: Depending on the number of days spent in India, determine your new residential status.
- Global income taxation: Be prepared to report and pay taxes on worldwide income if you are considered a resident.
- NRI income tax exemptions: Know what exemptions still apply during the transition time.
- Foreign asset disclosure: Report foreign assets and bank accounts in your Indian tax returns.
- NRI Property Tax rules: Reconcile tax incidence on rental income and capital gains from properties.
- FEMA rules: Compliance with the Foreign Exchange Management Act Rules as relating to foreign currency accounts.
Simplify Your Tax Filing with Easy Tax Filing Website
Navigating the complex world of taxes as a returning NRI can be challenging. That's where Easy Tax Filing Website comes in. Our platform specializes in helping NRIs understand and fulfill their tax obligations when returning to India.
With user-friendly interfaces, expert guidance, and up-to-date information on NRI tax laws, the Easy Tax Filing Website makes the transition smoother and ensures you remain compliant with Indian tax regulations.
