Every country has a set of rules and regulations that every citizen needs to follow. Many people might be wishing to settle in abroad and start working there. The work can be in the form of a business or job. In this way, the income earned by the person will be included in the NRI income. Even in our country, there are separate rules for NRI income tax. It might be very easy for the person to understand the overall concept of taxation. So it will be great to take the help of a tax consultant for NRI in Pune that will help in doing all the right things at the right time.
NRI income is the income of the person that is residing outside the country and also has a steady earning source. To get into the process of NRI taxation, first of all, the person needs to be eligible for this taxation and the only requirement is that the overall income is based outside the home country.
There can be two sources taxable sources for an NRI. Let’s have a look at them.
- Background plays a role: The residential status of the person surely depicts the status of the person to pay for the taxes. The taxation system will check the location of the person and the income origin. If the person’s income belongs to India, then they are liable to pay the taxes. If case if the person is a permanent resident of another country but still has some source of income from India, he is again eligible to pay for the taxes.
- Variations in income sources: Even the sources of income also lead to the NRI taxation. If the person transfers the asset in India and its amount if the money falls under the money capital gain, then the person has to get into the category of NRI tax. Even the rental income of the NRI person is also included in the taxation process.
Once the person knows the sources of taxes, they can hire the best NRI investment advisor in Pune to get to know more about the rules and regulations. They will surely guide the person according to the tax deductions for the NRI’s. The list is stated as below:
- Claims on life insurance: Even NRI people can claim for the deduction in the income taxes paid by them. One of the best ways is going for the life insurance policies. All the insurance policies are exempted from the taxation income. Thea amount of the premium should be less than a certain percentage of the principal amount.
- Loan of property: If an NRI goes for some kind of loan on the property, another tax deduction can be acquired by them. The loan can be for property or residential land. Proper formalities need to be done for getting this deduction.
So it will be better to always be under the guidance of the experts as they know what all things need to be done at the right time.