How To Determine That An Individual Is NRI. 115C: Annual Statement of Tax Deducted U/s 203AA Rule No.:31AB

How to determine that an Individual is NRI.
115C
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Special provision for computation of total income of non-residents.
115D.
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Tax on investment income and long-term capital gains. 115E.
Capital gains on transfer of foreign exchange assets not to be charged in certain cases.
115F.
Return of income not to be filed in certain cases.115G.

Benefit under Chapter to be available in certain cases even after the assessee becomes
resident.115H.
Chapter not to apply if the assessee so chooses.115-I

annual statement of tax deducted u/s 203AA Rule No.:31AB
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Application for certificate authorising receipt of interest and other sums

without deduction of tax.
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NRI- Taxation
Who is a Non Resident Indian (NRI)?
A Non Resident Indian (NRI) is a person resident outside India, who is a citizen of India or is
a person of Indian origin.
Who is a Person of India Origin (PIO)?
A Person of Indian Origin means a citizen of any country (other than Bangladesh or
Pakistan), if:
I. He at any time held an Indian passport; or
II. He or either of his parents or grand parents was a citizen of India; or
III. He is a spouse of an Indian citizen, or of a person referred to in (I) or (II) above.
What are the different types of rupee accounts permitted to be maintained?
The three types of rupee accounts permitted, that can be maintained by NRIs are as follows
I. NRE: Non-resident (External) Rupee Accounts,
II. NRO: Non-resident Rupee (Ordinary) Accounts
III. FCNR B: Foreign Currency (Non Resident) Accounts (Banks)
What are NRE and NRO accounts?
Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are
freely repatriable. It can be opened with either fund remitted from abroad or local funds
maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used
for all legitimate purposes. The balance in the account is freely repatriable.
Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with
funds either remitted from abroad or generated in India. The amounts in such an account are
non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per
various directives in force at the time of repatriation.
Does an NRI require any approval from the RBI to invest in mutual fund schemes?
No approval is required.
Yes.
Can an NRI invest in mutual funds in India?
Note: With effect 08 Dec 2008 U S Persons and Persons of Canada will not be allowed to
make any fresh purchase/additional purchase/switches in any scheme of ICICI Prudential
Mutual Fund (Please refer addendum dated 04-December 2008 for more details).
Can an NRI invest in foreign currency?
An NRI cannot make the investment in foreign currency. He needs to give us a Rupee cheque
from his NRE/NRO bank account in India. He may also send a Rupee cheque from abroad
payable in a bank in India. However, for an NRI to invest, it is mandatory that he maintains a
bank account in India.
What is the tax liability for dividend income received from your mutual funds?
As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units
specified under Section 10(23D) is exempt from income tax in India and the mutual funds are
subject to deduction of distribution tax in debt oriented schemes. Hence all dividends are taxfree in the hands of non-resident investors and no TDS is applicable on the same. We request
you to consult your investment advisor and/or Tax consultant for further details/ clarification.
Yes.
Is the indexation benefit available to NRIs?
How will the redemption proceeds be paid to NRI.
In the case of NRIs, where the investment is made out of inward remittance or from funds
held in the NRE/FCNR account of the investor, the maturity proceeds/repurchase price of
units (after payment of taxes) may be credited to the NRE/FCNR/NRO account of the nonresident investor.
Process for redemption proceeds where investments were made on non-repatriation

basis
Where the purchase of units is made on a non-repatriable basis, the maturity

proceeds/repurchase price of units (after payment of taxes) will not qualify for repatriation
and may be credited to the NRO account of the non-resident investor.
Investments in units purchased in Rupees, where the investor was a resident of India and
subsequently becomes a non-resident, will not qualify for repatriation of repurchase proceeds
of units.
Investors are advised to contact their banks/tax consultants if they desire remittance of the
income distribution on units abroad.
Tax Rates
1. In case of an Individual (resident or non-resident) or HUF or Association of
Person or Body of Individual or any other artificial juridical person
Assessment Year 2015-16
Taxable income
Up to Rs. 2,50,000
Rs. 2,50,000 to Rs. 5,00,000
Rs. 5,00,000 to Rs. 10,00,000
Above Rs. 10,00,000
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Education Cess [see Note]
Taxable income
Up to Rs. 2,50,000
Rs. 2,50,000 to Rs. 5,00,000
Rs. 5,00,000 to Rs. 10,00,000
Above Rs. 10,00,000

2. In case of a resident senior citizen (who is 60 years or more at any time
during the previous year but less than 80 years on the last day of the previous
year)
Taxable income
Up to Rs. 3,00,000
Rs. 3,00,000 - Rs. 5,00,000
Rs. 5,00,000 - Rs. 10,00,000
Above Rs. 10,00,000
Taxable income
Up to Rs. 3,00,000
Rs. 3,00,000 - Rs. 5,00,000
Rs. 5,00,000 - Rs. 10,00,000
Above Rs. 10,00,000
3. In case of a resident super senior citizen (who is 80 years or more at any
time during the previous year)
Taxable income
Up to Rs. 5,00,000
Rs. 5,00,000 - Rs. 10,00,000
Above Rs. 10,00,000

Taxable income
Up to Rs. 5,00,000
Rs. 5,00,000 - Rs. 10,00,000
Above Rs. 10,00,000
Note:
a) Surcharge: The amount of income-tax shall be increased by a surcharge at the
rate of 10% of such tax, where total income exceeds one crore rupees. However,
the surcharge shall be subject to marginal relief (where income exceeds one crore
rupees, the total amount payable as income-tax and surcharge shall not exceed total
amount payable as income-tax on total income of one crore rupees by more than
the amount of income that exceeds one crore rupees).
b) Education Cess: The amount of income-tax and the applicable surcharge, shall
be further increased by education cess calculated at the rate of two per cent of such
income-tax and surcharge.
c) Secondary and Higher Education Cess: The amount of income-tax and the
applicable surcharge, shall be further increased by secondary and higher education
cess calculated at the rate of one per cent of such income-tax and surcharge.
d) Rebate under Section 87A: The rebate is available to a resident individual if his
total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of
income-tax or Rs. 2,000, whichever is less.
d) Rebate under Section 87A: The rebate is available to a resident individual if his
total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of
income-tax or Rs. 2,000, whichever is less.
4. Partnership Firm
For the Assessment Year 2015-16 and 2016-17, a partnership firm (including LLP)
is taxable at 30%.
Add:
5. Local Authority
For the Assessment Year 2015-16 and 2016-17, a local authority is taxable at 30%.
Add:
d) Surcharge: The amount of income-tax shall be increased by a surcharge at the
e) Education Cess: The amount of income-tax and the applicable surcharge, shall
f) Secondary and Higher Education Cess: The amount of income-tax and the
d) Surcharge: The amount of income-tax shall be increased by a surcharge at the
e) Education Cess: The amount of income-tax and the applicable surcharge, shall
f) Secondary and Higher Education Cess: The amount of income-tax and the
6. Domestic Company
For the Assessment Year 2015-16 and 2016-17, a domestic company is taxable at
30%.
Add:
rate of 5% of such tax, where total income exceeds one crore rupees but not
exceeding ten crore rupees and at the rate of 10% of such tax, where total income
exceeds ten crore rupees. However, the surcharge shall be subject to marginal
relief, which shall be as under:
(i) Where income exceeds one crore rupees but not exceeding ten crore rupees,
the total amount payable as income-tax and surcharge shall not exceed total
the amount of income that exceeds one crore rupees.
(ii) Where income exceeds ten crore rupees, the total amount payable as incometax and surcharge shall not exceed total amount payable as income-tax on total
income of ten crore rupees by more than the amount of income that exceeds ten
crore rupees.
(iii) Where income exceeds one crore rupees but not exceeding ten crore rupees,
the total amount payable as income-tax and surcharge shall not exceed total
the amount of income that exceeds one crore rupees.
(iv) Where income exceeds ten crore rupees, the total amount payable as incometax and surcharge shall not exceed total amount payable as income-tax on total
crore rupees.
7. Foreign Company
Assessment Year 2015-16 and Assessment Year 2016-17
Nature of Income
Royalty received from Government or an Indian concern in pursuance of an agreement made with
before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made
1976 and where such agreement has, in either case, been approved by the Central Government
Any other income
Add:
(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the
total amount payable as income-tax and surcharge shall not exceed total amount
payable as income-tax on total income of one crore rupees by more than the
amount of income that exceeds one crore rupees.
(ii) Where income exceeds ten crore rupees, the total amount payable as incometax and surcharge shall not exceed total amount payable as income-tax on total
crore rupees.
8. Co-operative Society
Assessment Year 2015-16 and Assessment Year 2016-17
Taxable income
Up to Rs. 10,000
Rs. 10,000 to Rs. 20,000
Above Rs. 20,000
Add:

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How To Determine That An Individual Is NRI. 115C: Annual Statement of Tax Deducted U/s 203AA Rule No.:31AB

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How to determine that an Individual is NRI.

Return of income not to be filed in certain cases.115G.

Chapter not to apply if the assessee so chooses.115-I

Application for certificate authorising receipt of interest and other sums

Can an NRI invest in mutual funds in India?

Is the indexation benefit available to NRIs?

How will the redemption proceeds be paid to NRI.

Process for redemption proceeds where investments were made on non-repatriation

Where the purchase of units is made on a non-repatriable basis, the maturity

Add: Surcharge and Education Cess [see Note]

Add: Surcharge and Education Cess [see Note]

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