NRI TAXATION

In general sense an NRI is an Indian who is residing outside of India and not covered under the ambit of Resident of India as defined in the Income Tax Act, 1961 but that doesn’t mean that he or she cannot perform commercial operations in India.
An NRI may establish business in India upon fulfillment of certain rules and regulations applicable on them. While setting up business in India most of the common obstacles as faced by the NRI’s are dire investments and financial issues.

NRI Taxation underneath the Indian taxation Act, 1961, affixes to those earning outside the domestic country. The taxation rules and perks allowed to them square measure very different from those felicitous to resident Indians. The NRI is required to strictly comply with all the rules and regulation of Foreign Exchange Management Act, 1999 (FEMA)

  • Tax Rates* For Individuals For The A.Y. 2019-20:

Tax rates for individuals

Income

Rates of Income Tax

Individual (Age Less than 60 Years)

Senior Citizen (Age Above 60 Years)

Super Senior Citizen (Age Above 80 Years)

1.       

Up to Rs 2,50,000

Nil

Nil

Nil

2.       

Rs 2,50,000 to 3,00,000

5%

Nil

Nil

3.       

Rs 3,00,000 to 5,00,000

5%

5%

Nil

4.       

Rs 5,00,000 to 10,00,000

20%

20%

20%

5.       

Above 10,00,000

30%

30%

30%

*The above rates are exclusive of surcharge and cess

  • Tax Rates* For Individuals For The A.Y. 2019-20:

Tax rate for Corporate Assessee for the A.Y. 2019-20

Status of Taxpayer

Rates of Income Tax

1.       

Firms/Local Authority

30%

2.       

Domestic Company

30% or 25%**

3.       

Foreign Company

40%

**Tax Rate is 25% if turnover or gross receipts of the domestic company in the previous year 2017-18 doesn't exceed Rs.250 Crore.

  • Tax Rates* for Cooperative Societies for the A.Y. 2019-20:

Tax rate for the Cooperative Societies for the A.Y. 2019-20

Status of Taxpayer

Rates of Income Tax

1.       

Upto 10,000

10%

2.       

Rs.10,000 to Rs.20,000

20%

3.       

Rs.20,000 and above

30%

*The above rates are exclusive of surcharge and cess

  • Rates of Surcharge

Rates of surcharge

Particulars

Taxable Income

1.       

Individuals/HUF

10%

15%

15%

2.       

Firms/Local Authority/Co-operative Society

Nil

12%

12%

3.       

Domestic Company

Nil

7%

12%

4.       

Foreign Company

Nil

2%

5%

5.       

Co-operative Societies

Nil

12%

12%

*The health & education cess at the rate of 4% shall be computed on aggregate of Income-Tax and surcharge.