I am an Indian resident. I have an offer from 1 of the UK firm. I will be working for them from India. They will be depositing GROSS Salary in my Indian Bank account. Can you tell me if I have to pay double TAX or only to the Indian Govt?

Ans: An NRI's income taxes in India will depend upon his residential status for the year. If your status is 'resident', you have to pay the income tax in India; if you are a non-resident, then you need not pay the income tax in India.

Any income that you get in India (eg. On investments, rental, etc) would be taxable in India. Whether you are a resident or non-resident you have to file ITR if your income exceeds Rs. 2,50,000 or if you have short term capital gains.

Ans: 1. If you transfer the proceeds in a NRE account, then the funds are freely repatriable ( take your money back). you have to pay taxes on the mutual funds here in India when you liquidate them. If you have a NRO account then the limit is USD 1 million per financial year. You cannot repatriate more than this amount.
2. Yes, you can get medical insurance in India. But the coverage is restricted to the geographical boundaries of India.

Ans: The statement you found is mostly correct. Here's a breakdown of tax implications for NRIs in India:

Basic Exemption Limit:

Yes, NRIs are eligible for a basic exemption limit of ?2.5 lakhs on their total taxable income earned in India during a financial year. This means if your income from Indian sources (including bank deposits, shares, mutual funds, but excluding PPF interest) is less than ?2.5 lakhs, you generally don't need to pay taxes or file an income tax return in India.
Taxable Income for NRIs:

Interest income earned on NRO accounts is taxable in India.
Dividend income from Indian companies is generally taxable in India at a rate of 20% (plus surcharge and cess if applicable).
Capital gains from selling shares or equity mutual funds in India are taxable depending on the type and holding period of the investment.
Rental income from property in India is taxable.
NRIs and PPF:

NRIs cannot open new PPF accounts, but they can continue to contribute to existing PPF accounts opened while they were resident Indians.
The good news is that interest income earned on PPF and the maturity amount are completely tax-free for everyone, regardless of residential status.
Filing Income Tax Returns:

Even if your total income is below ?2.5 lakhs, you might still need to file an income tax return in India if you want to claim a tax refund on TDS (Tax Deducted at Source) deducted from your income, such as on interest from NRO accounts.
NRIs are advised to consult with a qualified tax advisor or chartered accountant familiar with NRI taxation to determine their filing requirements and tax liabilities.
In summary, while the ?2.5 lakh limit is a general guideline, it's important to consider all your income sources in India and the specific tax treatment of each to determine your tax filing obligations.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: 01. NRI is subject to Income Tax on any Income, which he earns or receives in India.
02. You would be liable to pay Income tax on any Income, like Rental Income from House Property, Interest Income or Dividends received from Securities or Mutual funds etc.
03. Any dividend payout or reinvested is chargeable to Income Tax. Your Investments (SIP in MFs) would keep on generating such type of Income.
04. Whenever you sell your investments, may be in MFs, Long/Short Term Capital Gains Tax, under the provisions of Income Tax would be payable.
05. It is advisable to file your ITR in India on regular basis.
Most welcome for any further clarifications. Thanks.