Items given to some kin are tax-exempt

NRIs and RNORs are only taxed on income which is earned, accrued or received in India

Over the past monetary yr, I labored for seven months in India and the remainder 5 months abroad. How will my earnings be calculated? Will there be any tax on my abroad earnings?

—Title withheld on request

To learn the way your revenue shall be taxed for a selected yr, you could establish your residential standing. A taxpayer would qualify as a resident if he satisfies one of many following two situations and a few extra situations.

Situations: 1) keep in India for a yr is 182 days or extra or 2) keep in India for the 4 previous years is 12 months or extra and 60 days or extra within the related monetary yr.

Within the occasion a citizen leaves for employment throughout a monetary yr, she’s going to qualify as a resident provided that she stays in India for 182 days or extra. Such people are allowed an extended time higher than 60 days and fewer than 182 days to remain in India. Efficient monetary yr 2021, this era of 60 days has been modified to 120 days or extra for such a person whose whole revenue (aside from from international sources) exceeds 15 lakh.

Further situations: you’re resident in two of the ten monetary years instantly previous the related monetary yr; and you’re in India within the seven years instantly previous the related monetary yr for 729 days or extra.

When you meet any of the primary set of situations and each the extra situations, you shall be thought-about a resident in India. When you meet any of the primary situations however don’t meet the extra situations, you shall be thought-about a resident however not ordinarily resident (RNOR) in India. If you don’t meet any of the primary situations, you shall be a non-resident in India (NRI).

NRIs and RNORs are solely taxed on revenue which is earned, accrued or obtained in India. Those that are residents should pay tax on their international revenue. Since you will have spent seven months in India, you’re prone to be resident in India for the final monetary yr.

I’m residing within the US for over 15 years. I wish to purchase an residence in Delhi for my brother. What are the tax implications if I purchase a two- or three-bedroom residence and reward it?

—Title withheld on request

An NRI is eligible to buy property in India. There aren’t any tax implications on the reward of this property by you to your brother. Items given to sure kin are exempt from tax, and brother is included in such a listing of kin, as per the tax legislation.

Archit Gupta is founder and chief government officer, ClearTax. Queries and views at

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