Why is it important to ascertain the Residential Status under Indian Income Tax Act?
The most critical question for an NRI having any economic relationship in India is about the taxation of his incomes. It is obvious that as an NRI would be unaware of the income tax rules of India. An NRI must first identify his residential status in India to know about taxation. To ensure that an NRI correctly identifies his residential status, we at Ashutosh Financial Services have created a unique Resident Status Calculator/ NRI Status Calculator.
The first thing an NRI must do is to determine his residential status. As per the Indian Income Tax rules, there are three types of NRI status. The three types of NRIs status are :
1) Resident & Ordinarily Resident (ROR)
2) Non-Resident (NR)
3) Resident But Not Ordinary Resident (RNOR).
It is important to note that the taxation implications for all these three types of NRIs status are different. It is, therefore, of utmost importance that an NRI determines his residential status. However, determining an NRI’s residential status is complicated, as various conditions must be checked. Our Residential Status Calculator has covered all the conditions of the Indian Income Tax law. It takes only a few minutes for an NRI to determine his residential status using our resident status calculator.
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1) When calculating the number of days kindly include the day of arrival as well as departure to and from India.
2) Indian Financial year is from 1st April till 31st March.