taxable income
This query is : Resolved
08 September 2009
if person is non-resident the income which earn by him in form of salary , business income & any form income in india is taxable ? under which section nd how we calculate his taxlaibilty?
Sanjeev Kumar
(Expert)
08 September 2009
YES
Message likes :
1 times
08 September 2009
under which section and how we calculate his tax laibilty
08 September 2009
if person is non-resident the income which earn by him in form of salary , business income & any form income in india is taxable ? under which section nd how we calculate his taxlaibilty?
26 July 2025
Here’s a clear summary for **taxability of income of a Non-Resident Indian (NRI) in India**:
---
### 1. **Is income earned by an NRI in India taxable?**
* **Yes.** Income earned or accrued in India by a Non-Resident Indian (NRI) is taxable in India.
* Only income **received or accrued or deemed to accrue in India** is taxable.
* Income earned outside India by a Non-Resident is **not taxable in India**.
---
### 2. **Types of Income taxable for NRI in India**
* **Salary income** earned in India (services rendered in India) is taxable.
* **Business income** from business carried out in India is taxable.
* **Other income** (like capital gains from transfer of Indian assets, rental income from property in India, interest from Indian bank accounts, etc.) is taxable in India.
---
### 3. **Relevant Sections in Income Tax Act**
* **Section 5(2)**: Specifies that non-resident's total income includes only income received or accrued or deemed to accrue in India.
* **Section 9**: Defines income deemed to accrue or arise in India.
* **Section 115E**: Special provisions relating to taxation of NRIs.
* **Section 115F, 115G, 115H**: Deals with certain reliefs and conditions for NRIs.
---
### 4. **How to calculate tax liability?**
* For NRIs, **normal slab rates applicable to individuals apply** for income other than capital gains.
* Capital gains are taxed as per provisions applicable to residents but different rates may apply (e.g., LTCG on listed securities has special rates).
* **Tax deducted at source (TDS)** is applicable on certain incomes (like interest, rent, professional fees, etc.) paid to NRIs.
* NRIs **cannot claim standard deduction or rebate u/s 87A**.
* They can claim deductions under Chapter VI-A (like 80C, 80D, etc.) subject to specific limits and conditions.
---
### 5. **Summary Table**
| Income Type | Taxable in India? | Relevant Section | Calculation Notes |
| ---------------------------------------- | ----------------- | ---------------- | --------------------------------------------------------------- |
| Salary (earned in India) | Yes | Sec 5(2), Sec 9 | Tax at slab rates applicable to individuals |
| Business Income (India) | Yes | Sec 5(2), Sec 9 | Tax at slab rates; if business permanently established in India |
| Capital Gains (from India assets) | Yes | Sec 5(2), Sec 9 | Tax as per capital gains provisions |
| Other Income (Interest, Rent, Dividends) | Yes | Sec 5(2), Sec 9 | Taxable; TDS applicable in many cases |
---
If you want, I can help with specific calculations or details for your case. Would you like that?
---
### 1. **Is income earned by an NRI in India taxable?**
* **Yes.** Income earned or accrued in India by a Non-Resident Indian (NRI) is taxable in India.
* Only income **received or accrued or deemed to accrue in India** is taxable.
* Income earned outside India by a Non-Resident is **not taxable in India**.
---
### 2. **Types of Income taxable for NRI in India**
* **Salary income** earned in India (services rendered in India) is taxable.
* **Business income** from business carried out in India is taxable.
* **Other income** (like capital gains from transfer of Indian assets, rental income from property in India, interest from Indian bank accounts, etc.) is taxable in India.
---
### 3. **Relevant Sections in Income Tax Act**
* **Section 5(2)**: Specifies that non-resident's total income includes only income received or accrued or deemed to accrue in India.
* **Section 9**: Defines income deemed to accrue or arise in India.
* **Section 115E**: Special provisions relating to taxation of NRIs.
* **Section 115F, 115G, 115H**: Deals with certain reliefs and conditions for NRIs.
---
### 4. **How to calculate tax liability?**
* For NRIs, **normal slab rates applicable to individuals apply** for income other than capital gains.
* Capital gains are taxed as per provisions applicable to residents but different rates may apply (e.g., LTCG on listed securities has special rates).
* **Tax deducted at source (TDS)** is applicable on certain incomes (like interest, rent, professional fees, etc.) paid to NRIs.
* NRIs **cannot claim standard deduction or rebate u/s 87A**.
* They can claim deductions under Chapter VI-A (like 80C, 80D, etc.) subject to specific limits and conditions.
---
### 5. **Summary Table**
| Income Type | Taxable in India? | Relevant Section | Calculation Notes |
| ---------------------------------------- | ----------------- | ---------------- | --------------------------------------------------------------- |
| Salary (earned in India) | Yes | Sec 5(2), Sec 9 | Tax at slab rates applicable to individuals |
| Business Income (India) | Yes | Sec 5(2), Sec 9 | Tax at slab rates; if business permanently established in India |
| Capital Gains (from India assets) | Yes | Sec 5(2), Sec 9 | Tax as per capital gains provisions |
| Other Income (Interest, Rent, Dividends) | Yes | Sec 5(2), Sec 9 | Taxable; TDS applicable in many cases |
---
If you want, I can help with specific calculations or details for your case. Would you like that?
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