Master TDS & TCS Provisions with Critical Issues. Register Now!

NRI taxation on annuity plans

21 July 2024

what is the NRI tax on annuity plans taken in India?

Reply
Follow
Share

1 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5956 Points)
Replied 22 July 2024

Taxation* - According to the Income Tax Act, 1961, you will qualify for a tax* deduction benefit up to ₹1,50,000 for investments made in annuity pension plans from insurance providers under Section 80CCC, a subsection of Section 80C. Moreover, investments made in the NPS will qualify for a deduction benefit up to ₹50,000.

Yes, Non-Resident Indians (NRIs) are subject to income tax in India, but it depends on the type of income and their residential status. Here are some key points: Residential Status: The tax liability of an NRI is determined by their residential status for the financial year. If an NRI is considered a resident for tax purposes, their global income is taxable in India1. Income Earned in India: NRIs must pay taxes on income that is earned, received, or deemed to accrue in India. This includes: Salary received for services provided in India. Income from property in India, whether rented or vacant. Capital gains from the sale of assets located in India. Interest earned on deposits in Indian banks12. Exemptions and Deductions: Certain types of income, such as interest on NRE (Non-Resident External) and FCNR (Foreign Currency Non-Resident) accounts, are exempt from tax1. Double Taxation Avoidance Agreement (DTAA): India has DTAA with several countries to avoid double taxation. NRIs can benefit from these agreements to reduce their tax liability