U.S citizen, Green cardholder or a resident alien irrespective of where you live for the year under assessment, is required to file the U.S tax return if person meets the minimum income requirements or have any taxes withheld by the payer. A person performing his services in the U.S or having income from other sources such as real estate will fall under the U.S tax filing bracket.  

A non-resident needs to file tax return in India in case he meets any of the criteria below:

  • Total income earned is more than the basic exemption limit
  • To claim a refund from income tax department
  • In case of a loss that you need to carry forward or in order to set-off gains
  • Income from long or short term capital gains; or on an account of sale of assets/investments irrespective of the gain amount.

Non-Resident Indian is a person residing outside India who is:

  • Either a citizen of India or,
  • A person of Indian origin

MYiTAXES.com provides a one stop solution for all your tax matters and supports you in all related processes.    

Gift Tax is paid by the person giving the gift (doner). If the gift is made by a NRI resident in USA, the tax laws of USA apply. Gift tax in USA has some exclusions (example, gift to spouse, gift for tuition or medical expenses), and there is an annual exemption which is $15000 in 2019.  Similarly Git tax is applicable in India and has  some exclusions. 

There are various websites for a savvy NRI that includes nri taxation, for example: a.) TAXSUTRA.com  b.) TAXGURU.in. However it is  best to refer to the official websites: https://www.irs.gov for USA Income Tax and  https://www.incometaxindia.gov.in/Pages/default.aspx for India Income Tax

  • NRI is a person who is a citizen of India and lives outside India for most days in a financial year and qualifies as Non Resident per the Income Tax Act. Under Foreign Exchange Management Act  (FEMA), NRI includes a person resident outside India who is either a citizen of India or is a Person of Indian Origin (PIO). 
  • PIO means a citizen of any country other than Bangladesh or Pakistan, and who at any time held Indian Passport, or who or either of whose parents or any of the grand parents was a citizen of India, or who is spouse of an Indian citizen or spouse of person referred to in 1 and 2 above. 
  • OCI  is a citizen of a country other than India, say USA, who is a Person of Indian Origin (PIO) and who has obtained a Overseas Citizen of India (life long visa) to live in or visit India. OCI enjoys most of the rights of Indian Citizens, except right to vote and some restrictions such as cannot buy agricultural property, under regulations such as FEMA. For more details refer  https://ociservices.gov.in/ 

The tax filing status and scope of income in India depends on days of stay in India in the financial year preceding the year of filing taxes (assessment year). If stayed 182 days or more, for example, (1 of the criteria), the person is Ordinary Resident and needs to file tax on global income. If not a Resident then only India source income is taxed, and a tax return would be needed

NRI/ OCI Knowledge Topics on US/ UK / India Taxation

List of Topics in Blog

  1. Filing Tax Returns in India by NRI
  2. Tax Deducted at Source (TDS) for NRI
  3. . Taxation of US Citizens and Green Cards Living in India
  4. Tax Rates n India, Corporate & Individual
  5. Gifts to and From NRI, Taxability in India’
  6. Rental Income Calc: Differences in USA, Indi
  7. Capital Gain on Property, India, USA Compared
  8. Taxability of IRA Accounts, USA & India
  9. US Tax Returns Forms
  10. FATCA, FBAR, 8938  Reporting
  11. NRI Taxation Changes from 2020-21
  12. Business Structuring i USA & Tax Impact
  13. Inherited property & NRI Taxation
  14. Gift and Estate Taxs in USA
  15. Double Taxation Credits in USA
  16. Tax residenct Certificate (TRC)
  17. Tax Saving Tips for NRI
  18. NRI – Tax on Investments and Capiatl Gain
  19. NRI – Exemptions from apital Gains, some cases
  20. NRI – Income exempt from Tax
  21. Tax of NRI being Foreign Company
  22. NRI – Special rates of Tax, in soe cases
  23. Tax Agreements – India with USA
  24. US International Taxation GILTI
  25. Determining NRI Status 0 In Detail
  26. UK Tax Overview