Income Tax for NRIs in India

[Yash_Kaviya]

Hi @AakashM, if you send your money from your own bank account in US to personal account in India, it shall be termed as repatriation of money and you won’t be taxed on it. Hope this helps. Feel free to ask if you have any other queries.

You can read more about repatriation of money in the article below.

@Divya_Singhvi

Yes, you can transfer or remit Indian rupee (INR) from Non-Resident Ordinary (NRO) A/c to an overseas bank account with certain documentation and restrictions.

Learn by Quicko – 8 Mar 19

Guide: Income Tax for NRO and NRE Accounts | Learn by Quicko

For an NRI, the interest on NRE account is exempt and interest on NRO account is taxable. Read about NRO & NRE Account - Meaning, Taxation and Rules

Estimated reading time: 5 minutes

[AakashM]

Thanks for the reply. I have come here for education, and I still have a normal savings account, not a NRE/NRO account. Will I still not be taxed in this situation?
Thanks

[Yash_Kaviya]

Happy to help @AakashM, yes you won’t face any tax implication on your transfer from your savings account.

[AakashM]

Thanks a lot for helping. Just another question, If I send money from US and receive in my normal savings account in India, I understand I won’t be taxed in India, do I still need to declare it as non taxable amount while filing the income tax return and if so under what section should it be declared, are there any documents I need to provide as proof?
Thanks

[Yash_Kaviya]

declare nahi karna
No @AakashM, it is alright even if you don’t declare this income (because it is your own money) and that is why you don’t need to provide any proof while filing your Income Tax Return.

[Dixita]

Being an NRI can I claim Capital gain exemptions on LTCG from the sale of house property in India?

[Divya_Singhvi]

@Dixita

Being an NRI can I claim Capital gain exemptions on LTCG from the sale of house property in India?

Hi @Dixita

NRIs are allowed to claim capital gains exemptions under section 54, 54EC, 54E, 54EA, 54EB, 54EE of LTCG from the sale of house property in India if they fulfill the criteria mentioned in the respective section.
You can refer to the below article:

Tax on sale of property by NRI in India - Learn by Quicko

Hope this helps

[drasifbabu]

1.I am an Nri. I transferred money to my father in INR through bank transfer which he imvested in share trading.Can it be shown as loan to my father, for which He will be paying interest at 14 % to me by bank transfer.(so that his taxable income can be reduced and i will show the interest recieved in my income). Is an agreement needed for this loan for income tax purposes? If so is agreement in paper enough? Should it be registered?If agreement in stamp paper needed, can i do it now although money was transferred in april 2020.

[Ridhima_Sharma]

Hey @drasifbabu

Yes, interest on loan can be claimed as an expense in case funds are used solely for trading purpose. Interest rate has to be the market rate. If the funds are used for multiple purposes, then interest can be claimed proportionately. There is no agreement required. Only bank transfer is enough to claim the expense. The receiver should show it as income while filing ITR.

Hope this helps!

[drasifbabu]

Thank for that information.
Is is possible to quote any clause or information from income tax or verdicts to support that… 1.interest paid on loan from relative is permissible, 2. Agreement not reqquired,…
Because my accountant claims that it is not allowed.
Thanking you in advance

[Nireka]

@drasifbabu,

As per Section 36(1)(iii) of the Income Tax Act, Interest paid in respect of capital borrowed for the purposes of the business or profession shall be allowed as a deduction. Any interest paid in excess of rates prevailing in the market would be disallowed.
As per our opinion, no formal agreement is needed in case of an unsecured loan. Payment of interest through bank is a valid proof of payment.