Budget falls short of NRI expectations for TDS (2023)

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Raising the income tax cap, with a focus on infrastructure and affordable housing, will help boost the economy, they say

Budget falls short of NRI expectations for TDS (1)

India's Finance Minister Nirmala Sitharaman, in red, leaves her office at the President's House before presenting the federal budget for fiscal year 2023-24 at the Parliament in New Delhi on Wednesday. -AP


muzaffar rizvi


isaac john

Published:Wednesday, February 1, 2023 2:08 PM

Last update:Wednesday, February 1, 2023 at 8:40 p.m.

Non-resident Indians in the UAE hailed India's Budget 2023-24 as a far-sighted and inclusive plan to move the US$3.4 trillion economy towards its medium-term target of reaching US$5 trillion Americans until 2025-26.

However, most expressed their dismay at the budget, which failed to heed their long-standing call to reduce TDS (withholding tax) across all asset classes for those who have a source of income in India and need to pay taxes in the country in which they live.

Finance Minister Nirmala Sitharaman did not even mention or acknowledge his contribution to India's success story in her budget speech. The Indian diaspora is the largest in the world and its remittances in 2022 totaled $100 billion. The United Arab Emirates was the second largest source of remittances after the United States.

(Video) Budget 2023: What Govt can do to attract NRI investments

Here are excerpts from some of the notable budget NRIs:

Budget falls short of NRI expectations for TDS (2)

Yusuffali MA, president of Grupo Lulu

Yusuffali MA, Chairman of Lulu Group: I would describe it as an "inclusive" budget that tried to take into account all parts of society and different priority sectors. The construction of 50 new airports and the development of waterways are sure to have a major impact on India's socio-economic fabric and further strengthen our position as a dream destination for global businesses and investors. I am confident that this budget will further strengthen India-Gulf trade ties and bring more investment into the country to benefit our economic development and employment sector.

Budget falls short of NRI expectations for TDS (3)

Dr. Azad Moopen, Founding President and CEO of Aster DM Healthcare.

Dr. Azad Moopen, Founding President and CEO of Aster DM Healthcare: The budget has an excellent focus on skills development and addresses one of the key challenges facing the healthcare industry today: nursing staff shortages , announcing plans to launch 157 nursing schools. along with existing medical schools. However, the general momentum for the health sector is lacking. We expected an increase in the budget allocation for the industry, which is essential to fill the gaps in demand. The need for more hospitals and health facilities in rural and suburban areas to meet the growing needs has not abated.

GP Hinduja, Co-Chairman of Hinduja Group: This is a pro-growth budget with a big investment push, maintaining fiscal discipline and none of the populism that is often evident in pre-election budgets. It consolidates India's position as โ€œtheโ€ investment destination with great political stability. The focus on capacity building, capital investment, increased infrastructure and a friendly tax regime will certainly attract global investors.

Budget falls short of NRI expectations for TDS (4)

Alukka's Joy

Joy Alukkas, Chairman of Joyalukka Group: The 3.3 percent of GDP investment spending proposed in the budget proposal will accelerate the country's economic growth and job creation. The allocation of Rs 2.20 trillion as direct remittances to farmers and the substantial funds allocated to various agricultural/MSME activities will give a boost to the agricultural/MSME sectors. The budget ensured a sound macroeconomic environment.

Budget falls short of NRI expectations for TDS (5)

Faizal Kottikollon, president of KEF Holdings

(Video) Budget 2023 Expectations | by CA Kushal Soni

Faizal Kottikollon, Chairman of KEF Holdings: The budget is a blueprint for India's expected leap to a $5 trillion economy in a few years. Increased spending on infrastructure, railways, tourism, renewable energy and the energy transition will open up many opportunities for global investors.

Dr. Ram Buxani, Chairman of Cosmos-ITL Group: India's finance minister has said in no uncertain terms that NRIs mean nothing to his homeland. The text of the budget does not even mention the NRI in an empty way.

Budget falls short of NRI expectations for TDS (6)

Ram Buxani

Otherwise, the inclusive budget is much appreciated. This year's budget is the voters' budget. And the NRIs have no voice in their country. It is a big decision to identify 50 destinations within the country to promote tourism. Scrapping old vehicles, including ambulances, will create a better environment.

Thomas KV, Chairman, Thomsun Group: The 2023-24 budget is a testament to India's lofty ambitions to remain the fastest growing major economy, driven by technology and skills. The move to provide a strong push towards digitization, skills development and job creation is critical for growth. The new income tax regime is a welcome relief for the broad middle class.

Budget falls short of NRI expectations for TDS (7)

Shamlal Ahamed, Managing Director, International Operations, Malabar Gold & Diamonds.

Shamlal Ahamed, Executive Director of International Operations, Malabar Gold & Diamonds: The budget has worked to stimulate further growth in the economy, addressing the global slowdown and inflation concerns. From the point of view of the jewelry industry, our main recommendation to reduce gold import tariffs to discourage illegal imports was not heeded and is very disappointing. We hope that this request will be considered and processed in the best possible way.

Budget falls short of NRI expectations for TDS (8)

(Video) Cut Personal Income Tax, Accelerate Privatisation Of PSUs: Tracking CII's Pre-Budget Recommendations

Adeeb Ahamed, director ejecutivo, LuLu International Exchange

Adeeb Ahamed, Managing Director, LuLu Financial Holdings: A balanced budget that takes into account the aspirations of India's youth and MSMEs. The budget underlines the fact that the way forward is to build an economy based on technology and knowledge. The proposal for an integrated and innovative approach to tourism destination development bodes well for the tourism sector.

Budget falls short of NRI expectations for TDS (9)

Al Maya Group leader Kamal Vachani welcomed the UAE cabinet's decision.

Kamal Vachani, Group Leader and Partner, Al Maya Group: The budget is humanitarian as the income tax exemption has been increased to 700,000 to benefit the middle class. This will cause households to spend more, leading to an increase in aggregate demand. A reduction in customs duties on open parts of cell phones (TV), cell phones, camera lenses, etc. would greatly enhance the Indian export of the product.

Thumbay Moideen, Founding Chairman of Thumbay Group: The overall budgetary outlook is positive and growth oriented with a focus on key sectors that are sure to be the main drivers of growth in the Indian economy and the $5 trillion target will be achieved by 2025. Key Highlights for us were the importance placed on green growth, youth empowerment, health research allocation and establishment of AI hubs making India a shining example of a global hub of excellence.

Mohan Valrani, President of Arcadia Education, Co-Founder and Mentor of Al Shirawi Group: This year's budget is a significant budget that continues the trend of more productive investment, which has grown to $10 trillion, up 33% year-over-year. before 2021 onwards than double. 50-year interest-free loans for state governments with a significant increase in spending of INR 1.3 trillion will create many jobs. Tax breaks for the middle class are a welcome step, but the budget isn't much for NRIs.

Budget falls short of NRI expectations for TDS (10)

Dr. Dhananjay Datar, Chairman of Al Adil Group: There is a huge tax break for the middle class, which means more disposable income. This, in turn, will increase consumption and stimulate the economy. The creation of the Agriculture Accelerator Fund will encourage business creation in rural areas and will aim to provide farmers with innovative and affordable solutions to the challenges they face.

Dixit Jain, The Tax Experts, DMCC: I was hoping for more relief for NRIs, but not much for them. One of the factors I liked was the clarification on the DTAA (Double Taxation Agreement) benefit on income from mutual fund shares, where NRIs can now apply for a TRC (Tax Residency Agreement) and receive the benefit immediately. Overall, a good budget.

Neelesh Bhatnagar, Managing Director, NB Ventures: A focused budget that will propel the economy towards a GDP growth target of 7.0%. The government will mainly focus on strengthening the infrastructure with 50 new airports and a big push with an allocation of INR 2.4 trillion to railways. Seniors have benefited from a higher deposit limit of up to 30 lakhs. Startups are incentivized to carry losses for 10 years, with a particular focus on AgriTech startups.

James Mathew, CEO and Managing Partner, UHY James Chartered Accountants: The budget reinforces India's positive economic sentiment with inclusive reforms, business-friendly initiatives, sustainable growth opportunities and people-focused tax regimes. It is consolidating India's economic competitiveness through measures that will catalyze the business landscape.

Raju Menon, Chairman and Managing Partner of Kreston Menon: Budget focuses on broadening the scope of economic growth, boosting key areas like infrastructure and manufacturing, and strengthening India's march towards a technology and knowledge-based economy . Until capital spending reaches 10% of GDP, aggressive growth cannot be stimulated. This is a middle-class and youth-friendly budget with income tax audits, job creation initiatives, and support for start-ups and the education sector.

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Naveen Sharma, Former President of ICAI Dubai: A growth-oriented budget that expands on previous initiatives, breaks new ground and will certainly help India become a top three economy. Increasing capital spending is a bold move to create jobs. A focus on tourism, technology and promoting innovation in agriculture will help India in the years to come.

Sajith Kumar P.K., CEO and Group MD, IBMC Financial Professionals Group: Budget is critical for global economies to see opportunities in India. The budget identified seven priorities to achieve economic growth of 7.0% in 2023-24. Indian equity markets responded positively to the budget. The Sensex index exceeded 60,500 points. The budget has a greater focus on inclusive economic growth through support for state governments.

Anish Mehta, Former President of ICAI Dubai: It seems that this budget is based on the principle of sharing and caring. It has good components for women, older adults and middle-class men and companies (SMEs and start-ups). This budget is an attempt to introduce more and more people to the new tax system. It will drive small savings into a big one. Stock markets are happy with this budget.

Bharat Bhatia, Founder and CEO of Conares: The government's commitment to invest in major transport infrastructure projects is exciting. Revitalizing 50 airports and investing Rs 750 crore in 100 transport projects and Rs 100 crore per year for the Urban Infrastructure Development Fund is a huge boost for the construction and steel industries and a significant step towards creating a one India stronger and more resistant. This is an investment in the future of India and will fuel economic growth for years to come.

John Varghese, Managing Partner at HLB HAMT: The Indian government's efforts to simplify the tax payment process is an excellent step in the 2023 annual budget. Just 16 days is a fantastic improvement that makes the process more efficient and save time. It also makes it easier for citizens to meet their tax obligations, as the government plans to introduce updated common IT reporting forms and improve the claims resolution process.

Adam Abdul Nazar, Deputy CEO of Life Healthcare Group: The strong focus on drug and medical device research is welcome as it is a step in the right direction for modernizing healthcare in India. We are pleased that the government understands the value of encouraging the manufacturing and retailing of pharmaceutical and medical products for the home. These developments could boost India's retail pharmaceutical sector and transform the country into a global pharmaceutical hub. This offers a promising vision for the future of Indian healthcare.

V Shamsudheen, Director Barjeel Geojit Financial Services: One of the highlights of the budget is the emphasis on the vulnerable population. The four items mentioned in the budget are women's empowerment, a tourism action plan, an initiative for artisans, and green growth. The importance given to the connectivity of villages to facilitate the transport of agricultural products will reduce the spoilage of agricultural products and provide farmers with a better price. Another support they receive is the incentive to use renewable energy, which helps increase spending on investments in education and health in the countryside.

Parveen Jain, President of NAREDCO: The budget is very progressive and comprehensive and has considered all aspects of the overall development and economic growth of the nation. A reduction in income taxes will indirectly lead to more saving and more investment and purchases in the housing and real estate sectors. All of the above factors should lead to more job creation, more investment and buying and progress for the real estate sector.โ€

Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory: In the budget, allocations have been made to expand infrastructure, health, education, skills, rural wellbeing and digitization. The government is investing heavily in capital spending to stimulate the Indian economy and create new job opportunities.

Suresh Agarwal, MD and CEO, Kotak Mahindra General Insurance Company: The budget is slightly above middle-class expectations and has a particular focus on women and youth, making it really citizen-centric. To remain the world's fastest growing major economy, this demonstrates the government's intent to improve the purchasing power of taxpayers through income tax rebates, an improved grievance mechanism for direct taxpayers, and capital deductions. of capital gains from investments, while being fiscally cautious in dealing with inflation

Dr. Niranjan Hiranandani, Vice President, NAREDCO: India has judiciously maneuvered through economic and global storms. It adequately addressed India's economic growth by increasing spending on infrastructure investments. This will have a multiplier effect on real estate asset classes such as residential, commercial, industrial and logistics.

Anuj Puri, Chairman of ANAROCK Group: The new measures announced in the budget can certainly help unlock the potential of the Indian economy. However, from a real estate perspective, there were no big direct announcements that could be seen as immediate updates. The 66% increase in the lot for Prime Minister Awaas Yojana is undoubtedly a boost for popular housing, which has declined due to rising input costs and also because buyers in this segment, mainly from the unorganized sector They are still suffering from the impact of the pandemic. .

Shiwang Suraj, Founder and Director of Inframantra: โ€œThe Union budget for fiscal year 2023 is very strong and focuses on the progress of the nation, with a focus on increasing economic efficiency and growing infrastructure. The budget increase to Rs 790 crore for Pradhan Mantri Awas Yojana (PMAY) will further empower the real estate sector and end users. The 2023 budget also focused on sustainable development, with climate protection as one of the central themes. We welcome the Finance Minister's focus and drive on job creation and urban development. This will boost the growth of the Indian economy.โ€

Ankit Alok Bagaria, co-founder of Loopworm, called the Union budget for 2023-24 "short and sweet" and said that the budget would help farmers, established companies and start-ups in the agricultural sector and related agriculture. โ€œINR 60 billion infusion to boost fisheries would greatly help shrimp farming. Reducing feed ingredient import tariffs will help feed manufacturers and contribute to the formalization of livestock, but would result in lower margins for domestic feed ingredient manufacturers. For young start-ups, the Agri Accelerator Fund is a good initiative, but less attention has been focused on supporting growing agri-startups. Funds to support biobased products to promote natural agriculture should boost the biostimulant and biofertilizer industry,โ€ Bagaria said, welcoming the budget. โ€œSignificant support for farm credit and significant injections of funds into related agricultural sectors should encourage existing farmers and individuals seeking secondary income sources to establish livestock/poultry/fish/insect farms that would result in the growth of agriculture on non-arable land,โ€ he said. aggregate.

CA Dhaval Jasani, Founder and CEO of ZTI Global, said that the budget did not bring negative news, only positive news, be it for people living below the poverty line, the white collar class and the Indian economy in general. โ€œCapex, which exceeds Rs 10 trillion, or more than US$122 billion, is a major driver for infrastructure development, directly contributing to lower logistics costs and boosting export growth. he added.

(Video) Budget Night Webinar - Post Budget Comments and Insight 2023

Jai Prakash Agarwal, Treasurer, ICAI Dubai Chapter agreed that increasing capex to INR 10 trillion shows the long-term vision of the government in building India's future. โ€œThe middle class will be relieved by increasing the base allowance from INR 500,000 to INR 700,000. This is the current investment of the government in India's middle class to shape the future of the country. A bit of disappointment is natural as there is no relief or exemption for NRIs, but he is pleased with India's long-term growth vision,โ€ he added.

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How can I avoid TDS on my NRO account? โ€บ

The best way for an NRI to avoid paying a high TDS is to open a Non Resident Ordinary Rupee Account (NRO), a Foreign Currency Non Resident Account (FCNR) and a Non Resident External Account (NRE).

How to calculate 182 days for NRI? โ€บ

NRI days calculator

So, deriving from that, an NRI is one who is: Present in India for less than 182 days during that fiscal year, or. Present in India for less than 60 days during that fiscal year and cumulatively 365 days or less during the preceding four fiscal years.

What is NRI status for income tax? โ€บ

If he / she is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year. An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year.

What are the tax implications for NRI in India? โ€บ

An NRI can claim a standard deduction of 30%, deduct property taxes, and benefit from an interest deduction of a home loan. The NRI is also allowed a deduction for principal repayment under Section 80C. Stamp duty and registration charges paid on purchasing a property can also be claimed under Section 80C.

What happens if I dont convert my account to NRO? โ€บ

Penalties for not converting to NRO account

Additionally, a penalty of Rs 5,000 is to be charged every day from the first day of intervention until the penalty is paid.โ€

Can TDS be refunded for NRI? โ€บ

TDS Refund as an NRI: All you need to know. NRIs can easily claim TDS refunds on income earned from India. Owing to Section 195 of the Income Tax Act, TDS deductions for NRIs are applicable to every type of income.

What is 120 days rule for NRI? โ€บ

According to the new rules, the period of '182 days' has been reduced to '120 days' for those NRIs whose income accruing or arising in India is more than Rs 15 lakh during that fiscal year.

What is NRI 60 days rule? โ€บ

The Foreign Exchange Management Act (FEMA) has laid down clear rules to determine if a citizen of Indian origin is a Resident Indian or a Non-Resident Indian. He/she has lived in India for at least 60 days of a year, in the previous year, and at least 365 days in the preceding four years.

How many days out of India is considered as an NRI? โ€บ

Non Resident Indian is a person who is not a resident of India. An individual is deemed to be a resident, if (A) Individual has resided in India in that year for 182 days or more or (B) Having within the 4 years preceding that year been in India for 365 days or more and is in India for 60 days or more in that year.

Do I need to file tax return in India if I am NRI? โ€บ

Should NRIs file income tax return in India? Yes. NRIs should file an income tax return in India if they have taxable income in India. For example, an NRI having a house property in India, earning rental income would be required to file an income tax return, if the rental income exceeds the exemption amount.

What is new rules for NRI taxation? โ€บ

In Union Budget 2021, the NRIs have been given tax relief as they have been spared from double taxation. The government has added a new Section 89A to the Income-tax Act 1961, according to which the income from the accounts opened abroad will not be taxable on an accrual basis.

Should NRI pay income tax in India? โ€บ

If your status is 'resident', your global income is taxable in India. If your status is 'NRI,' your income earned or accrued in India is taxable in India.

How can I avoid TDS on NRI property? โ€บ

The NRI seller can also apply in Form 13 to obtain a lower/ Nil TDS (under Section 197) for such receipts. The Assessing Officer will issue a certificate mentioning the amount of tax deduction, the basis of which the buyer of the property would be liable to deduct TDS on total sale consideration.

How much NRI is tax free in India? โ€บ

In the Union Budget 2022 announced by the Finance Minister Nirmala Sitharaman on 1 February 2022, the tax audit limit for NRIs (Non-Resident Indians) was increased to Rs. 10 crore from the current Rs. 5 crores. NRIs will also be spared from double taxation.

What are the disadvantages of NRI account? โ€บ

It can only be opened with another NRI. It can only be opened with another NRI. The interest earnings can be repatriated fully. The principal amount can only be repatriated to the extent of 1 million USD or equivalent in a fiscal year.

Is it illegal for NRI to have savings account? โ€บ

Yes, continuing to hold your resident savings account after gaining NRI status is considered illegal under the Foreign Exchange Management Act (FEMA) guidelines and doing so may attract hefty penalties.

Can I keep an NRI account after returning from overseas? โ€บ

How long I can keep these accounts? A person can have an NRE account as long as one is a non-resident under the provisions of Foreign Exchange Management Act (FEMA). A non-resident becomes a resident under FEMA as soon as he comes back to India for good or for an indefinite period.

Can US citizen hold NRO account? โ€บ

NRIs living in the USA can open an Axis NRO savings account to save their income earned in India such as pension, dividends, or deposit their existing savings. Convenient depositing and management of funds. Close relatives and parents of the account holder can operate the account in the absence of NRIs.

What is the TDS rate for NRI FY 2022 23? โ€บ

TDS Rates for NRIs for the FY 2022

Note: In case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at normal rate or 20% (5% in case of section 194-O), whichever is higher.

Will I get full TDS refund? โ€บ

Therefore, you can claim a TDS refund when filing your income tax returns (ITR) for the financial year. The TDS (Tax Deducted at Source) refund process is easy and does not take a long time, provided you have the necessary documents.

Who is eligible for TDS refund? โ€บ

Now, if you belong to the 5% tax bracket, you can claim a TDS refund for the additional amount deducted. Similarly, you can also claim a TDS refund of excess TDS deducted on salary due to non-submission of 80C investment proofs or rent receipts towards house rent allowance to the employer.

How long does it take to get lower TDS certificate for NRI? โ€บ

NRI Lower TDS Certificate โ€“ Timeline (Sec 197 โ€“ Form 13)

For preparation of application and documents โ€“ 2 Days. For Moving Application to the TDS Jurisdictional Officer (Internal computerised process in Income Tax Department) โ€“ 4 days. For Raising Observation & Other Requirement by TDS Officer โ€“ 2 Days.

What are FEMA rules for NRI? โ€บ

5 Important Rules Under FEMA Every NRI Should Know
  • Maintenance of bank account. Once you become an NRI, you need to open certain bank accounts that are designated for NRIs. ...
  • Financial investment options. ...
  • Acquisition and transfer of immovable properties. ...
  • Repatriation of current and immovable assets. ...
  • Income for students.
Apr 9, 2020

What is the maximum limit of NRI account? โ€บ

NRE accounts do not have a limit on repatriation and the interest earned is tax-free in India. An NRO account, in contrast, has a limit of $1 million on remittances outside India in a financial year. Are you interested in opening NRI accounts remotely?

Does NRI senior citizen get tax exemption? โ€บ

The tax rates for NRIs and residents are the same but there are differences based on age. The basic exemption limit is Rs2. 5 lakh, irrespective of age (for resident senior citizens above 60 to 80 years, the exemption limit is Rs3 lakh, and Rs5 lakh for super senior citizens above 80 years under the old tax regime).

How is TDS calculated NRI? โ€บ

As an NRI, if you sell a property in India, the buyer deducts 20% as Tax Deducted at Source (TDS) as Long Term Capital Gains Tax for properties sold after two years. For properties sold before 2 years, the TDS rate is 30%, deducted as Short Term Capital Gains Tax.

Can an NRI sell a property without going to India? โ€บ

An NRI can sell property anytime but he or she will need some documents like: Title of the property (which is in the seller's name) Occupation Certificate from the municipal corporation in India.

Which state has highest NRI in India? โ€บ

Even in 2019, as per World Bank data India is the largest global recipient of remittances.
State% share in total remittancesas % of state GDP
Tamil Nadu8.02.84
2 more rows
Sep 2, 2020

Can a NRI have a PAN card? โ€บ

A non-resident Indian ('NRI') can apply for PAN by submitting the Form No. 49A along with the requisite documents and prescribed fees at the PAN application center of UTIITSL or Protean (formerly NSDL eGov). He can also make an online application through the website of UTIITSL or Protean (formerly NSDL eGov).

What is proof of NRI status? โ€บ

Proof of NRI Status - Copy of valid visa/ work permit / Overseas Resident Card. Address Proof - The address on the document must be the same as the address mentioned in the application form.

Do I need to file taxes in India if I live in USA? โ€บ

If you have lived in the U.S. long enough to be considered an NRI but still have income coming from India, you are required to file your Indian income tax return when your income exceeds the basic exemption limit.

Is Aadhaar card mandatory for NRI income tax return? โ€บ

Under section 3 of the Aadhaar Act, 2016, only a resident is entitled to get Aadhaar. Therefore, the provisions of Section 139AA quoted above regarding linking of Aadhaar to PAN or the requirement of quoting the Aadhaar number in the return shall not apply to a non-resident, who is not eligible to get Aadhaar.โ€ 2.

Which ITR should be filled by NRI? โ€บ

NRIs usually file their tax under ITR-2.

Can we deposit dollars in NRE account in India? โ€บ

An NRE Account or Non-Resident External Account offers you this facility. Here, your money is converted into Indian Rupee or INR at the time of deposit. This means that you can deposit money in any foreign denomination, e.g. US Dollar and withdraw it in Indian Rupees.

Do OCI holders need to pay tax in India? โ€บ

A โ€œnon-residentโ€ pays tax only on his taxable Indian income and his foreign income (earned and received outside India) is totally exempt from Indian taxes.

Do NRE accounts need to pay tax? โ€บ

Taxation of interest on NRE account

Any interest on the NRE account is fully exempt under Section 10(4)(ii) of the Income Tax Act without any limit. Since the interest on such deposits is fully exempt the bank will not deduct any tax on such interest at source.

Do NRI pay tax on FD? โ€บ

Tax Implications on Investment in Fixed Deposits

An NRE Fixed Deposit is exempt from taxation, but an NRO Fixed Deposit is liable for the NRI tax due. Interest earned on NRE Fixed Deposit is exempt from tax in India but there is TDS applicable on interest earned on NRO Fixed deposit.

What happens if TDS is not deducted on purchase of property from NRI? โ€บ

In case the buyer fails to deduct the TDS (wholly or partly) or fails to deposit the TDS with the Government, then the buyer (i.e. Deductor) would be liable to pay penalty under section 271C. Here, the defaulter would be required to pay penalty amounting to sum equal to the TDS not deducted or TDS not paid.

How can NRI save tax in India? โ€บ

Income Tax for NRI
  1. Deductions under Section 80C.
  2. Of the deductions under Section 80C, those allowed to NRIs are:
  3. Other allowable deductions.
  4. Deduction from house property income for NRIs.
  5. Deduction under Section 80D.
  6. Deduction under Section 80E.
  7. Deduction under Section 80G.
  8. Deduction under Section 80TTA.
Jan 16, 2023

What happens if you dont pay TDS on property? โ€บ

Penalty Applicable To TDS On Property:

The penalty of not paying TDS on immovable property can be up to Rs. 1 lakh under Section 271H. To avoid penalty, you can pay the TDS, interest amount and late payment fee as soon as you receive a tax notice.

Do NRI pay TDS in India? โ€บ

TDS applies to such non-residents for any amount generated from business transactions in India. The amount may or may not be an income of a profit. NRIs have to pay TDS even for income types from which resident Indians are exempt, like dividends on mutual funds.

What is 15 lakh rule for NRI? โ€บ

It provides than an Indian citizen earning Total Income in excess of โ‚น 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.

Can NRI claim TDS refund? โ€บ

NRIs can easily claim TDS refunds on income earned from India. Owing to Section 195 of the Income Tax Act, TDS deductions for NRIs are applicable to every type of income.

Can US citizens have NRO account in India? โ€บ

Answer: An NRO (current/ savings) account can be opened by a foreign national of non-Indian origin visiting India, with funds remitted from outside India through banking channel or by sale of foreign exchange brought by him to India.

Which is better NRI or NRE? โ€บ

Though there are several differences between an NRE and NRI account, you will need both to manage your funds. An NRE account proves useful for your foreign earnings and you can even send money back to your country of residence freely. An NRI account helps keep your income earned in India safe and within India.

Which Indian bank has best NRI account? โ€บ

Here are key features of some of the top NRO savings bank accounts for Non-Resident Indians in 2023.
  • Citi Bank NRO Account. ...
  • DBS Bank NRO Account. ...
  • HDFC Bank NRO Account. ...
  • ICICI Bank NRO Account. ...
  • Kotak Mahindra Bank NRO Account. ...
  • RBL Bank NRO Account. ...
  • State Bank of India NRO Account. ...
  • Yes Bank NRO Account.

Is TDS deducted on NRO accounts? โ€บ

TDS will be deducted on the interest earned from NRO account @30% plus applicable cess and surcharge. The TDS rate is 31.2% on interest upto Rs 5 million. The entire NRO interest is subject to TDS without any exempted threshold.

Can TDS be waived? โ€บ

Income tax department will refund excess TDS, after you file an income tax return.

How much amount is tax free in NRO account? โ€บ

Interest earned through such accounts is also taxable. Nonetheless, under Section 80TTA, interest income under Rs. 10,000 waivered, while NRIs reporting a total earning higher than the stipulated interest income is taxed.

Do I need to pay tax for money in NRO account? โ€บ

For those wondering, โ€œis an NRO account taxableโ€, the answer is yes. In India, the interest earned on deposits in NRO accounts is fully taxable. The interest income on funds in an NRO account is subject to tax deducted at source (TDS).

What are the disadvantages of NRO account? โ€บ

NRO accounts have limited access for repatriation. An NRO account restricts you from remitting more than USD 1 million inclusive of taxes during an assessment year. You can repatriate the interest amount freely, but the principal amount can be repatriated only within set limits.

How can I avoid paying NRI income tax in India? โ€บ

Tax Exemptions for NRIs
  1. Interest earned on NRE/FCNR accounts.
  2. Interest earned on government issued savings certificates and notified bonds.
  3. Dividends earned from shares of domestic Indian companies.
  4. Long term capital gains from listed equity shares and equity-oriented mutual funds.

Should NRI pay TDS on property? โ€บ

If you purchase a property from a Non-Resident Indian (NRI), you need to deduct tax (TDS) under Section 195 of the Income-tax Act, 1961 (ITA). Tax must be deducted when you make any payment to the NRI for the purchase of a property. This is also applicable in case an advance is being paid.

Who is eligible for TDS waiver? โ€บ

The individual should be a resident Indian. The total interest income is less than the minimum exemption amount for that year. The minimum exemption amount for the financial year 2022-23 (AY 2023-24) is Rs. 2,50,000.

How can I avoid TDS? โ€บ

TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be submitted if there is no tax on total income. Form 15G is for everybody else, except NRIs.

Who is eligible for TDS exemption? โ€บ

TDS is exempted in the following 2 cases: If the receiver gives a self-declaration saying that he had made the required investments in FORM 15G/15H or. There is a certificate of exemption given by the Assessing Officer.

Can NRI have normal bank account in India? โ€บ

Yes.An NRI Can also open accounts from abroad by sending duly filled and signed AOF duly attested by Indian Consulate along with attested copies of passport and Visa, etc.

How much money can I keep in my bank account without tax in India? โ€บ

There are no restrictions as to the maximum amount you can keep in a saving bank account either under the income tax laws or under banking regulations but different banks have different rules as requiring the accountholders to maintain minimum balance in their saving account failing which they levy penalty for such non ...

Can I transfer money from savings to NRO account? โ€บ

All that the NRI needs to do is to convert his/her regular savings account held in the country to a NRO account. Once this is done, the NRI can deposit all his/her earnings made in India into the NRO account in Indian currency.

Is NRO account mandatory for NRI? โ€บ

If you are an NRI with income in India, it is mandatory to open an NRO account or convert your existing savings account into an NRO account. An NRO account allows you to efficiently manage your India income.

Is it taxable if my friend transfer money to my account in India? โ€บ

The rule for gifts under the Income Tax law is that gifts of up to a sum of โ‚น 50,000 are exempt from income tax. As long as the amount transferred to you doesn't go over this threshold, there is no need to declare it.

Is it mandatory to convert all savings account to NRO? โ€บ

Is it mandatory to convert to NRO account? If your residency status has changed to NRI, then having your savings account converted to an NRO account is mandated by the law. There are penalties levied if you fail to ensure timely conversion of the savings accounts to an NRO account.


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