Sage-Tips

Is basic exemption limit available for non resident?

As a Non-resident, you still get the benefit of basic exemption limit of Rs. 2,50,000 from your total income.

Is basic exemption limit available for short term capital gain?

The exemption limit is Rs. 2,50,000 for non-resident individual irrespective of the age of the individual. The exemption limit is Rs. 2,50,000 for Hindu Undivided Family (HUF).

Is 80c available for NRI?

An NRI is eligible to claim full deduction under Section 80 C upto Rs. 1.50 lakh every year but there are restrictions as to the products in which an NRI can invest to claim this deduction.

What is exempted capital gain?

Capital gains exemption refers to the benefit offered by the Government to taxpayers, relaxing the need to pay tax on capital gains. When a taxpayer sells an asset (other than personal belongings and items of stock used in the business) for a profit, the need to pay capital gains tax arises.

Can NRI claim basic exemption?

NRIs can claim exemptions under Section 54, Section 54 EC, and Section 54F on long-term capital gains. Therefore, an NRI can take benefit of the exemptions from capital gains when filing a return and claim a refund of TDS deducted on Capital Gains.

Can NRI invest in capital gain bonds?

The Budget for 2014 has specified that you are allowed to invest a maximum of Rs 50 lakhs in a financial year in these bonds. The NRI must make these investments and show relevant proofs to the Buyer – to make sure TDS is not deducted on the capital gains.

What is the basic exemption limit of income tax for NRI?

2. Benefit of basic exemption limit is not available to NRI, if only income he is earning in India is Long term capital gain. Basic exemption limit for A.Y 2019-20 is INR 2.5 lakh. It means every person (resident/nonresident), if his income in India is upto INR 2.5 Lakh, he is not liable to pay any income tax in India.

What is the capital gains tax for NRI investors in India?

Short-term capital gains tax on sale of equity shares/ equity oriented mutual fund units Listed equity shares and equity-oriented mutual fund units sold by an NRI investor before 12 months of its acquisition are called short-term capital assets the profit is classified as short-term capital gains. STCG on shares for NRI shall be taxable at 15\%.

What are the tax implications of LTCG for an NRI?

If he is resident, then he is not liable to pay any tax as his income is below exemption limit. However, If he is NRI, he shall pay tax on this LTCG at specified rate irrespective of the fact income is below exemption limit.

What is basic exemption limit for short term capital gain?

You can also check my post on Short Term Capital Gain. Basic Exemption Limit means the income level up to which a taxpayer is not required to pay any tax. We will discuss the case of Resident Indian and NRI’s separately.