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Tax Liability For Non-Resident India


Tax Liability for Non Resident Indians (NRIs)/ PIO

A person who is non-resident /PIO is liable to tax on that income only which isearned by him in India. Income is earned in India if -

  • It is directly or indirectly received in India; or
  • It accrues in India or the law construes it as having accrued in India.
The following are some of the instances when the law construes and income to have accrued in India by NRI/PIO and these income is taxable :-
  • Income from business arising through any business connection in India 
  • Income from property if such property is situated in India;
  • Income from any asset or source if such asset or source is in India;
  • Income from salaries if the services are rendered in India. In such cases salary for rest period or leave period will be regarded as earned in India if it forms part of service contract,.
  • Income from salaries payable by the Government to a citizen of India even though the services are rendered outside India;
  • Income from dividend paid by an Indian company even if the same is paid outside India;
  • Income by way of interest payable by Government or by any other person in certain circumstances ;
  • Income by way of Royalty if payable by the Government or by any other person in certain circumstances;
  • Income by way of fees for technical services if such fees is payable by the Government or by any other person in certain circumstances.