International student

Income Tax Income from Other Sources
1

Hi,
My daughter is going for higher education to US, will she be treated as NRI after 182 days and can she do trading from her linked saving bank account and what shall be tax implications
Thanks

2

Hey @Trader_R,

The tax rates will remain the same. She’ll have to file her ITR and report the incomes earned in India, which will be trading income.

3

Thanks for the response. Few more clarifications

  • Will her tax slabs be same as resident Indian?
  • Does she file the return with same ITR form?
  • I understand after 180 days we would have to convert her account as NRO account so will the TDS on the FDs linked to that account will be 30%
    Your inputs will be appreciated
4

Appreciate if you answer the queries raised

Thanks

5

Hi @Trader_R,

The tax slabs will remain same, however, some exemptions are not allowed to NRIs. For example the basic exemption of ₹2.5L is not available on capital gains.

Yes, only one ITR form needs to be filed. Either ITR-2 or ITR-3 needs to be filed based on sources of income.

Moreover, yes 30% TDS will be applicable on interest from FDs.

6

Thanks for the inputs