TAX RATES / TDS etc » TAX RATES / TDS etc
NRIs CORNER - TAX RATES / TDS etc.
Taxes are price one pays for civilization. Well, one can never balance the two / civilization matures people to tend to pay rightful taxes for the income and wealth / in the initial stage of an economy, regulations are strict but administration takes time to cover up regulations to follow the regulations and people too - law and order is built up and an opportunist make money by setting a bad example for honest people to pay taxes, but as economy grows and civilization together with law and order is established. Taxes are reduced and people consciously become good citizen paying fuller taxes.
India is in a transition but inspite of being in the initial stages of development, taxes are quite reasonable with maximum rate plugged at 30% and for Non-Resident Indians (NRIs) most of the passive income being exempt from tax, India is almost a tax-heaven.
2. Rates for Income-Tax-
The general rate of income tax is applicable to an NRI, whereas certain benefits are granted to senior citizens who are aged above 60 years and very senior citizens who are aged above 80 years. It may be noted that said privilege is granted to Resident senior citizens only.
Although Resident tax-payers are taxed beyond the threshold tax exemption limit on their short term capital gains as also long term capital gains other than exempt gains arising from equity shares. Whereas in case of NRIs, short term gains and taxable long term capital gains are not granted benefit of threshold tax exemption limit and such gains are taxable from the first rupee.
3. Returning NRIs Tax Provisions-
NRIs returning home for permanent settlement are granted certain tax exemptions but are liable to tax.