As the employment and business opportunities are growing overseas, many Indians have migrated to various foreign countries also many IT professionals & professionals from other fields have been going on-sites for their projects in different countries and mostly have to stay in those countries for either Short term or Long term duration.
However, they continue to invest into India and enjoy higher returns on their investments when compared to other countries. There are many different rules and regulations for foreign income of Indian Residents and NRI’s.
They have to pay tax for income earned from salary for services rendered in India, return on investments in India and sale of such investments in India.
Indian Residents, NRIs or Indians overseas / foreign citizens can receive our dedicated consultation services to know which part of their income is chargeable to tax in India. The consultation will be provided as per the provisions of the Income Tax Act, 1961 and the relevant Double Taxation Avoidance Agreement.
No matter wherever you are located, we at Money Plant Consulting have a very streamlined process to track and manage your tax & income portfolio which helps in complying all the rules & regulations and maximize the benefits as specified by the laws.
For more information & details on our process and professional fees you may Mail us your details or Call us; Our team of experts will get in touch with you.
Tax Planning For NRIs
It has been observed that most of the NRIs (often salaried ones) end up paying more taxes than they are obligated to. While lack of sufficient time to conduct the tax-planning exercise is a reason, largely, this can be attributed to lack of awareness about different incentives, allowances, deductions and rebates under the Income Tax Act. There are various other sections which can help NRIs save taxes. We at Money Plant Consulting have a very organized process & system to track and manage the Tax & Investment Portfolios for NRIs and guide them accordingly to save taxes.
There are many ways by which NRIs can legally save taxes and few of them are listed below -
- If a non-resident receives income outside India and subsequently remits to India he need not pay tax on such income in India. Thus instead of receiving the income in India, he should plan to receive it outside India and later remit the income to India.
- If an individual who is visiting India intends to retain his non-resident status, he should not stay in India for more than 181 days during the previous year and his total stay in India during the previous 4 years preceding the relevant previous year should not exceed 364 days.
- In case an Indian citizen is leaving India for employment, he should not stay in India in that year for more than 181 days so that he is not treated as a resident in that year. Such planning will help him in saving tax in India on the income, he might be earning and received outside India.
- You can also invest in various options available under 80c by making yourself eligible to claim deduction under section 80C of Income tax Act, 1961.
Contact us now to help you optimize all the available Tax benefits & get more out of your taxable income in India.
Double taxation refers to the situation when an individual is taxed more than once on the same income, asset or financial transaction. Yes, this does happen in the real world and many of you may have dealt with it
The situation of double taxation usually arises due to overlap of taxation laws of two or more countries. If you or your business has operations or dealings in a country apart from your residence, you may have come across a situation where you become liable to pay tax in the country of your residence, as well as the foreign country where the transaction took place or where the income was generated. So it’s a case of being a resident in one country, while earning income from another which may lead to a situation wherein you fall under taxation laws of both.
The Double Tax Avoidance Agreements (DTAA) is essentially bilateral agreements entered between two countries, in our case, between India and another foreign state.
The basic objective is to avoid, taxation of income in both the countries (i.e. Double taxation of same income) and to promote and foster economic trade and investment between the two countries.
The advantages of DTAA are as under.
- Lower Withholding Taxes (Tax Deduction at Source)
- Complete Exemption of Income from Taxes
- Underlying Tax Credits
- Tax Sparing Credits