Nri Income Tax - Enjoy A Host Of Privileges

By Author: Vijay K Shetty
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Non resident Indians or NRIs enjoy a host of privileges. Banking for NRIs has often been a subject of much concern among them. Most NRIs have their families back in India. This not only meant that the NRIs had to deal with problems in transferring money through traditional banking techniques but they also faced a certain degree of discomfort in personal banking methodologies and most importantly for taxation purposes. But more recently, major Indian banks have flexed their offerings enough to ease the financial dealings of NRIs.

According to the Income Tax Act of 1961, a person is termed as an NRI if he or she does not stay in India for a period of 182 days over a financial yea starting 1st April to 31st March. Taxation for NRI’s are mainly based on the income he or she makes out their stay in India. NRI taxes fall under a multitude of sections which includes sections for Capital Gains, Investments etc. In respect of Capital Gains under the Income-tax Act, 1961 one is not liable to Income-tax if he reinvests in specified assets or if he has capital loss in other assets.

Taxes for NRIs are levied as per government ...
... standards. Recently there ahs been a large number of tax evaders which has prompted the Government of India to step up collecting information about large financial transactions is concerned and also about tracking tax evaders. There is also a very strong movement to make many processes relating to tax administration electronic and automated that will help NRIs. This would ensure that the Income-tax department has a central database of all tax payers in the country along with details of large financial transactions entered into by each such person in a year.

Banks can now help NRis out with their taxation by providing them with investment options other facilities.

Vijay K Shetty.
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