Income Tax for NRI and Foreign Income

Determining Residential Status: Based on days spent in India or the previous year's residency history. Resident vs. NRI: Residents pay taxes on global income; NRIs are taxed only on India-earned income.

Taxable Incomes for NRIs: Salary from Indian sources. Rental income from Indian properties. Business income from India. Interest income from NRO accounts. Capital gains from Indian assets. Deductions and Exemptions: NRIs have some tax-saving options, including deductions for investments and exemptions on certain capital gains.

Double Taxation Avoidance: NRIs can benefit from DTAA, either through exemption or tax credit. Budget 2020 Changes: Revised criteria for determining residency and changes in dividend taxation.

Residency Taxation Matrix: Different tax treatments based on residency status and income source. New Clause in Budget: Introduction of a clause regarding residency determination. Dividend Distribution Tax (DDT): Transition from DDT to TDS for dividend taxation.