NRI Taxation - Income Tax Benefits for NRIs in India

Enjoy tax benefits on your life insurance policy in India

As an NRI life insurance customer, you are eligible for tax^* benefits on the premiums paid under Section 80C and money received from your life insurance policies subject to Section 10(10D).

^{*Tax benefits are subject to conditions of Sections 80C, 10(10D), 115BAC & other provisions of the Income Tax Act, 1961, and are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.}

Tax Centre – FATCA/CRS

Central Board of Direct Taxes (CBDT) has notified rules on due diligence, maintenance of information and reporting of the accounts regarding non-resident Indians who are covered under the Foreign Account Tax Compliance Act (FATCA-US person) or Common Reporting Standard (CRS)( Non-US person) on August 7, 2015.

Who is impacted by FATCA/CRS?

It is applicable to all the policyholders, where any of the following indicia is true:

Citizenship or tax residency outside India

Place of birth outside India

Mailing or residence address (including P.O.Box) outside India

Telephone number (residence or mobile) outside India

Standing instruction to transfer funds to an account domiciled outside India

Power of attorney or signatory authority granted to a person with an address outside India

A "hold mail" instruction or "in-care-of" address in a jurisdiction outside India if the reporting financial institution does not have any other address on file for the account holder

What are the details required for submitting FATCA/CRS?

Following additional details will be mandatorily required at the time of account opening and at the time of renewals for pre-existing accounts as defined under FATCA/CRS, if not provided earlier. The same has been incorporated in the NRI questionnaire.

Country of Birth

Country of residence as per tax law

Tax Identification Number (TIN)

Where can you find more detailed information on FATCA and CRS?

For further information on FATCA and CRS, please visit www.incometaxindia.gov.in where the Central Board of Direct Taxes (CBDT) has notified due diligence and reporting rules 114F to 114H under Section 285BA of the Income Tax Act, 1961.

To update your FATCA/CRS details, click here

Get Answers To Common Tax-Related Queries

Can NRIs claim a TDS refund?

Yes, NRIs can claim a TDS refund of income earned in India, if any.

What is the tax rate* for NRIs in India?

There is no tax charged for a yearly income up to ` 2,50,000/-. NRIs are taxed at 5% for income between ` 2,500,000/- and ` 5,00,000/- per annum. The tax rate is 20% for income between ` 5,00,000/- and ` 10,00,000/- per annum. Income above ` 10,00,000/- per annum is taxed at 30%.

Do NRIs pay property tax in India?

Please ask the customer to get in touch with personal a tax advisor

Is basic exemption available to NRI?

Yes, NRIs enjoy a basic exemption limit of ` 2,50,000 in a financial year. This limit is uniform for all NRIs regardless of their age (including senior citizens).

Is TDS applicable on insurance payouts to NRIs?

Yes, tax will be deducted at source (TDS) under Section 195 of the Income Tax Act, 1961 on Income.

Is PAN mandatory?

Yes, PAN is mandatory to get a TDS certificate and credit in Form 26AS.

What is DTAA and how it can be useful for getting a TDS exemption?

Double Taxation Avoidance Agreement (DTAA) is signed by the governments of two nations to eliminate double taxation on the same income in both the countries. DTAA prescribes, the country in which the income is earned from a foreign country will be taxable.

What is Form 10F?

Form 10F is prescribed under the Income Tax Act, 1961 and is required to be submitted by a Non-Resident Indian with details like Name, Address, Status (Individual, Company, Firm), PAN, Nationality, Tax Identification Number/Unique ID Number in the country of residence, etc.

What is Tax Residency Certificate (TRC)?

Tax Residency certificate (TRC) is a document issued by an authorised Governmental body of a country certifying that the person is a tax resident of the issuing country. TRC issuing authorities are normally the tax/revenue departments of a country. TRC has a validity period and should cover the date of policy payout. There is no prescribed format, every country has its own format.

Who needs to submit Form 10F and Tax Residency Certificate (TRC)?

Form 10F and TRC are required to avail DTAA benefit of NO TDS. This benefit is only available if the DTAA treaty with the country of your residence specifies that the income is taxable in other country and not in India.

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Disclaimer

^* Tax rates are exclusive of surcharges & cesses.

^* Tax benefits are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods & Services Tax & Cesses, if any, will be charged extra as per applicable rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

COMP/DOC/Mar/2022/143/7630

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