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Taxability Of Tax Residents Vs. Non Tax Residents


Posted on October 01 2020

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Once if you figure out which category you fall under the tax residence or non tax residence then you can determine which portion your income will be taxed.
 
· As per the rule 1 and 2, an ROR is liable to tax on their worldwide income including the capital gains.
 
·As per the rule 1, NRs are liable to tax on the income received in India or accumulating or arising including the assumed to be received or accumulating or arising in India.
 
·As per rule 1 and 2, an RNOR are liable to the same tax treatment like the NRs, except that income accumulating or arising outside India is also chargeable only if it is derived from a business controlled or a Profession set up in India.
 
Residents (ROR) are liable to tax on their worldwide income, including the capital gains. Income from abroad is taxable in India on the gross basis and the credit is provided for the taxes paid abroad; therefore, such credit cannot cross the tax payable in India on such income.
 
Non residents (NR) are liable to tax in India on their Indian source income and income received or assumed to be received in India or assumed to be accumulating or arising in India. Foreign source income of non residents is exempt from the Indian income tax which is liable to certain assuming provisions.

Individuals, who are residents, but not ordinarily residents (RNOR), are liable to the same treatment like the non residents, except that the income accumulating or arising outside India is also chargeable to tax in India only if it is derived from a business controlled or a profession set up in India.
 
Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians. 
 
 
With the help of Tax Assist and its team of income tax professionals, taxpayers can minimize their Income Tax liability, maximize their net income and create opportunities to save for current and future needs while maintaining proper accounting standards and income tax returns which are compliant with the Law.

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 +91 98307 56567 |  info@TaxAssist.in