Taxability of cash from nri account to indian bussiness account

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Transferring funds from an NRI account to an Indian business account is generally not considered taxable income. Instead, it's viewed as a capital introduction to the business, increasing your initial capital investment. This distinction means it doesn't create a tax liability under the Income Tax Act.

surbhi chaturvedi

surbhi chaturvedi (Querist)

25 January 2023 Please confirm the taxability, if a NRI trasfer any cash from dubai to India from his NRI A/c to indian current bussiness A/c.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 January 2023 No tax liability on such transfer, under IT act.

surbhi chaturvedi

surbhi chaturvedi (Querist)

25 January 2023 Sir, Can you please confirm related section.
one more thing i need to ask, when this cash will come in business account then this income will be taken as business income no, then how it is exempt?
please explain.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 January 2023 The capital transfer from your NRI account is not income, but capital introduction in the business, and hence it is not taxable. Your initial capital investment in the business will be increased by such cash transfer..

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