Tag Archives: NRI
Can Overseas Citizen of India (OCI) get Aadhar card?
NRI tax rate and TDS deduction on sale of property
NRIs are taxed at the same rate as non NRIs. If property is owned for more than two years, then they fall under the 20% tax slab. If it’s a short term sale (owned for less than 2 years) then NRIs are taxed at the applicable tax rate based on total income taxable in India.
NRIs should also be aware of TDS on sale of property. There’s a 22.8% TDS that the buyer has to deduct for a property owned for more than 2 years. For ownership of less than 2 years, buyer has to deduct TDS of 30%. This TDS can be reduced through a special request to the Income tax department.
NRE Deposit rates are going up
RBI has freed the interest rate on NRE deposits, and banks are raising interest rates, offering 9% or more on a 1 year NRE deposit. This is great news as the rate of return is very much comparable to local deposits.
Note: NRE deposits get converted to rupees when it is deposited.