Tax Savings : Many NRIs from India live in various nations throughout the world; these people have settled in far-flung countries to make money, yet they retain Indian citizenship. It is common for NRIs to gain money while living overseas and then invest in real estate and other areas in India with the assistance of family and relatives.
These NRIs, like other Indian nationals, must pay income tax, but only on income received within India, such as from bank deposits, rent, or property acquisition and sale. Here, we will show these NRIs how to save income tax.
Table of Contents
Obtain a tax residency certificate
If an NRI earns a profit by investing in two countries and the two countries have a double tax agreement, he can only pay taxes in one of them by obtaining a TRC. Because of this, he avoids paying double tax and saves money.
Tax Savings : Benefits of Filling out Form 10F
Form 10F is a statement that validates an individual or entity’s eligibility for tax advantages under the Double Taxation Avoidance Agreement (DTAA). This form must be filed before making any payments to an NRI, and its validity is limited to the fiscal year in which it is submitted. Form 10F has two sections. The first section comprises the NRI’s statement, while the second section contains the certification issued by the tax authority of the resident nation.
Facilitating the e-verification procedure
Income tax can now be filed on the internet, but e-verification requires an Indian mobile number or bank account. At the same time, NRIs want foreign mobile numbers or email verification. There is also a need to extend the 30-day time limit for physical verification in order to help people experiencing logistical problems.
you join our tazatimesnews Telegram Channel
you join our whatsapp channel
Next News Read –RBI has issued new credit report rules, and you should know how they will effect your credit score.
