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NRI TAX BENEFITS | Income Tax for NRIs in India


The first question that comes in our mind is that, who are NRI?

NRI is an Indian Citizen who stays abroad for employment or gone outside India or stays abroad under circumstances indicating an intention for an uncertain duration of staying abroad.

Now the question arises in our mind that what is a Tax?

A Tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Hence in some words Tax is a money that people have to pay for people who work for the government.



The term tax benefits generally refer to any tax law that provides you with an opportunity to reduce your tax bill when you satisfy certain eligibility requirements. A tax benefits comes in different forms, such as a deduction, exclusion or credit. The amount of tax you can save also depends on the type of tax benefits you claim because they each offer a different form of savings.

There are so many tax benefits such as:

  1. Saving tax with deductions: The most common type of tax benefits comes in the form of a tax benefits. For example, when you claim a tax deduction, it reduces the amount of your income that is subject to tax. Therefore, the amount of the deduction you are eligible to claim is precisely the amount of the reduction to your taxable income.
  2. Calming tax credits:A tax credit generally has more tax-savings than a deduction as it provides a dollar for dollar reduction in the amount of income tax you owe rather than merely reducing the amount of income subject to tax.

Now the question that comes in our mind is – Do NRI have to pay Advance Tax?

If NRI tax liability exceeds Rs 10,000 in a financial year, then they are required to pay advance tax. Interest under Section 234B and Section 234C is applicable when they don’t pay their advance tax.

The following are the Taxable Income for an NRI:

  • Income from Salary
  • Income from House Property
  • Rental Payments to an NRI
  • Income from Other Sources
  • Income from Business and Profession
  • Income from Capital Gains

Conclusion: Hence an NRI has the same tax benefits as same as the resident of India and comes under the same tax slab as per the rules and regulations set up by the income tax of India.

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