Non-Resident Individual for AY 2023-2024 (2024)

FAQs

Who is a non-resident individual? ›

| 9 min read. A person of Indian origin living abroad is known as a Non-Resident Indian (NRI). The Income-tax Act, 1961, provides different tax rules for Indian residents and NRIs. Indian-origin individuals are considered residents when they live for a certain period in India.

Latest Income Tax Rules for NRIs

Income tax slabs for NRIs are based only on income. They do not depend on the gender, age, or other specification of the individual. All incomes of NRIs are charged irrespective of any threshold value for TDS.

How are NRI taxed? If the annual income exceeds the basic exemption limit of Rs. 2.5 lakh, it's mandatory to file tax returns, whether you're an NRI (Non-Resident Indian) or a resident. Typically, the deadline for filing returns is July 31 of the relevant assessment year.

As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circ*mstances, voluntary filing can be beneficial in many ways.

A non-resident person is someone who is visiting a particular place but who does not live or stay there permanently. 100,000 non-resident workers would be sent back to their home villages.

The eligibility criteria for NRI status are below: An Indian citizen stays abroad for 183 days or more in one financial year. An Indian citizen stays in India for less than 365 days in the last four years from the current assessment year and less than 60 days during the year.

As per the FEMA guidelines, there is no penalty for not declaring your NRI status. However, you must either close your existing savings account or convert it into a Non-Resident Ordinary (NRO) savings account as soon as possible.

Q- Is it mandatory to declare NRI status in India? According to FEMA guidelines, there are no penalties for failing to declare your NRI status. However, it is imperative that you promptly either close your current savings account or convert it into a Non-Resident Ordinary (NRO) savings account.

According to Article 15 of the DTAA, a person who is a particular country's resident but has income from a foreign country source, his income would be taxed 'only' in the residential country. This means if an NRI works in the US and his income comes from an Indian source, he has to pay only US taxes.

Do OCI have to pay tax in India? ›

The OCI is an immigration status that was introduced to meet the demand for dual citizenship in India. Eligible OCI cardholders have to pay income tax in India on the income generated in the country. You can file your ITR online as an OCI on Indian income.

Similarly, when an Indian citizen or a person of Indian Origin (PIO) who is abroad comes to visit India, the period of '60 days' is to be replaced by 182 days. If you satisfy any of the two conditions, you are a Resident Indian. Else, you are deemed a Non-Resident Indian (NRI).

According to income tax regulations, non-resident Indians must file returns in ITR 2 starting with the 2017–18 fiscal year, with the exception of commercial income. Indian non-residents who receive business income are required to file an ITR 3 income tax return. NRIs can no longer file ITR 1.

You must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Refer to Foreign Students and Scholars for more information.

According to 26 USC § 865(g)(1) “The term 'nonresident' means any person other than a United States resident.” A nonresident is any individual who does not primarily reside in one state or one country, but has an interest in it.

a person who is not staying or living in or at a place: The hotel bar is open to non-residents. Non-residents pay higher tuition fees. SMART Vocabulary: related words and phrases. People who live or settle somewhere.

Resident individual means a natural person who maintains a permanent place of abode within a specific region and who resides in that same region for more than [six months] of the [taxable year].

An individual whose permanent home is in a different location from where they work.