NRI's: Incomes That Are Charged to Tax in India

Updated: Tuesday, March 10, 2015, 9:35 [IST]

The Income-tax Law has its own set of provisions for determining the residential status of a person.

The residenstal status depends on a person earning income is very much relevant for determining the taxability of such income in his hands.

Hence, residential status plays a vital role in determining the taxability of the income.

The following chart highlights the tax incidence in case of different persons:

Nature of income	Residential status
	ROR (*)	RNOR (*)	NR (*)
Income which accrues or arises in India	Taxed	Taxed	Taxed
Income which is deemed to accrue or arise in India	Taxed	Taxed	Taxed
Income which is received in India	Taxed	Taxed	Taxed
Income which is deemed to be received in India	Taxed	Taxed	Taxed
Income accruing outside India from a business controlled from India or from a profession set up in India	Taxed	Taxed	Not taxed
Income other than above (i.e.,income which has no relation with India)	Taxed	Not taxed	Not taxed

* Where ROR stands for resident and ordinarily resident. RNOR means resident but not ordinarily resident. NR means non-resident.

Incomes are treated as incomes deemed to be received in India:

Interest credited to recognised provident fund account of an employee in excess of 9.5% per annum.
Employer's contribution to recognised provident fund in excess of 12% of the salary of the employee.
Transferred balance in case of reorganisation of unrecognised provident fund.

Source: IncomeTax Site