NRI Income Tax Rates & Tax Slabs for FY 2023-24 (2024)

FAQs

How much NRI income is now exempted from tax in India? ›

Latest Income Tax Rules for NRIs

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. Nominal deductions are not applicable on investment income, except under specific situations.

Deemed resident status

An individual who is a citizen of India and has total income (from other than foreign sources) in excess of Rs 15 lakhs during a financial year, he shall be deemed to be resident in India in that year if he is not a tax resident of any other country.

An NRI is not liable to pay tax on income earned outside India. However, an NRI returning to India gets a NOR status, eventually converted to a ROR status. A resident Indian is liable to pay tax on global income under the income tax laws.

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.

The 2023 tax year—meaning the return you'll file in 2024—will have the same seven federal income tax brackets as the last few seasons: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you're in.

Can I still claim deductions under Chapter VI-A in the new tax regime? No, deductions under Chapter VI-A, including popular ones like 80C (for investments), 80D (for medical insurance premiums), and 80E (for education loan interest), are no longer allowed under the new tax regime.

In 2024, the standard deduction is $14,600 for single filers and those married filing separately, $29,200 for those married filing jointly, and $21,900 for heads of household. The 2024 standard deduction applies to tax returns filed in 2025. $29,200. $21,900.

If you fit the Resident Indian criteria, your total global income is taxable under Indian tax laws. But if your status for the year is 'NRI', only the income earned or accrued in India is taxable. The NRI income tax be levied on the following: Salary received for services provided in India (Global Income)

Is it mandatory to declare NRI status in India? ›

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.

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.

Understanding when NRIs should file income tax returns in India. NRIs should file income tax returns in India if they have earned income within the country during the financial year. An NRI's income taxes in India will depend upon his/her residential status for the year as per the Indian Income Tax Act, 1961 tax rule.

Double taxation occurs when you are taxed on the same income in two different countries, one where you earn the income (known as the source country) and the other where you are a tax resident (known as the resident country).

There is no ceiling on the money an NRI can send to India. This money, however, needs to be earned through legit means. You also have to pay the required taxes on this money in the country it was earned. There is also an aspect of taxation to the money being sent to India.

For the tax year 2022 (the tax return filed in 2023), you may be eligible to exclude up to $112,000 of your foreign-earned income from your U.S. income taxes. For the tax year 2023 (the tax return filed in 2024), this amount increases to $120,000.

No, remittances made by non-residents of India are not included in India's national income. This is because national income measures the total income generated within the geographic boundaries of a country during a specific period, and remittances represent money earned outside the country's economy.

Wealth tax is applicable to individuals, HUFs, and companies. The deciding factor for the applicability of wealth tax is the residential status. The thumb rule is that the resident Indians are subject to wealth tax on their global assets. However, NRI's fall under the ambit of wealth tax for the assets held in India.