List of Income which are Taxable for Non Resident Indian

Non Resident Indian (NRI) has to pay tax on all the income from whatever source derived which is received or is deemed to be received in India in such year by or on behalf of such person or accrues  or arises or is deemed to accrue or arise to him in India during such year. But Income accruing or arising outside India shall not be deemed to be received in India.

Also Income once taxed on the basis of accrual can’t be again taxed based on the receipt of such income.

Section of 5 of the Income tax India : Taxability of Non-residents in India

Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which—

(a)  is received  or is deemed to be received in India in such year by or on behalf of such person; or

(b)  accrues or arises or is deemed to accrue or arise to him in India during such year.

Explanation 1.—Income accruing or arising outside India shall not be deemed to be received in India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India.

Explanation 2.—For the removal of doubts, it is hereby declared that income which has been included in the total income of a person on the basis that it has accrued or arisen or is deemed to have accrued or arisen  to him shall not again be so included on the basis that it is received or deemed to be received by him in India.

Leave a Reply

Your email address will not be published. Required fields are marked *