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Non-Resident Indians (NRIs) can submit their 2025 Income Tax Returns: A rundown of tax slabs, forms, qualifications, and filing deadlines elucidated.

Non-Resident Indians (NRIs) are permitted to invest in a wide range of financial tools and real estate in the nation, excluding agricultural lands, plantations, and farmhouses. As they can purchase property and invest in other financial avenues, they are subject to the same taxation as...

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Non-Resident Indians (NRIs) may put their funds in a range of financial assets and real estate...
Non-Resident Indians (NRIs) may put their funds in a range of financial assets and real estate within the nation, save for agricultural property, plantations, and farmhouses. They are subject to taxation like domestic residents when investing in property and other financial instruments. However, if NRIs do not earn or generate income within India's basic tax-free threshold, there is no requirement for them to submit an ITR (Income Tax Return).

Non-Resident Indians (NRIs) and Their Tax Obligations in India for Assessment Year 2025-26

Non-Resident Indians (NRIs) can submit their 2025 Income Tax Returns: A rundown of tax slabs, forms, qualifications, and filing deadlines elucidated.

Are you an NRI brimming with excitement about India's bustling stock market and yearning to invest, but unsure about the tax implications? Let's demystify the landscape for you!

Non-Resident Indians (NRIs) have unique income tax obligations when it comes to their earnings in India. Here's a lowdown on the essential aspects that every NRI should be aware of.

1. Taxable Income for NRIs

  • Income earned or accrued in India is taxable for NRIs, be it from investments, rent, or other sources within the nation.
  • Exemptions apply to the foreign income earned outside of India.

2. Residential Status

  • An individual is regarded as an NRI if they do not meet the criteria for being a resident. Generally, this involves staying in India for fewer than 182 days during the financial year.
  • Special cases apply to Indian citizens working abroad, who must spend at least 182 days within India to be considered residents.

3. Income Tax Filing Requirements

  • NRIs must file an income tax return in India if their total annual income from Indian sources exceeds ₹2.5 lakh, even if the income is fully taxed via TDS.
  • Filing a return is also necessary for NRIs to claim back any excess TDS deducted on their income.
  • The due date for filing the return for AY 2025-26 is July 31, 2025, for NRIs not subject to tax audit.

4. Tax Rates and Regimes

  • On AY 2025-26, NRIs will pay tax as follows:
  • Upto ₹3 lakh: Nil
  • ₹3 lakh to ₹7 lakh: 5%
  • ₹7 lakh to ₹10 lakh: 10%
  • ₹10 lakh to ₹12 lakh: 15%
  • ₹12 lakh to ₹15 lakh: 20%
  • Above ₹15 lakh: 30%
  • Opt for a special tax regime under Chapter XII-A for income from foreign exchange assets and enjoy rates like:
  • 10% (currently 12.5%) for long-term capital gains
  • 20% for investment income, subject to certain restrictions

5. Advance Tax

  • NRIs are required to pay advance tax if their tax liability exceeds ₹10,000.

6. TDS

  • TDS is applicable on income earned in India, such as interest on NRO accounts.
  • NRIs can claim a refund of excess TDS by filing an income tax return.

Now that you're up to speed on NRI tax obligations in India for AY 2025-26, you're ready to dive into the thrilling world of Indian investments with a clear conscience! Happy investing!

  1. For NRIs, dividend income from investments within India is taxable, but foreign dividend earnings are exempt.
  2. If an NRI has investments in the foreign exchange market (forex) or personal-finance investments in India, they can opt for a special tax regime under Chapter XII-A that offers lower tax rates.
  3. When investing in the Indian stock market or other financial instruments, an NRI must be aware of TDS (Tax Deducted at Source) on income such as interest from NRO accounts.
  4. To manage their tax obligations effectively and potentially claim back excess TDS, NRIs should familiarize themselves with the income tax filing requirements for Assessment Year 2025-26, which includes a due date of July 31, 2025, for NRIs not subject to tax audit.

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