NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tax Provisions for Special Cases
Under the Income-tax Act, a Non-Resident Indian (NRI) is generally taxed in India on which of the following income?
A non-resident is taxed in India only on income received or deemed received in India, or accruing or arising in India. Foreign income earned and received abroad is not taxable, whereas residents (ordinarily resident) are taxed on their global income.
- AIncome received or deemed to be received in India, or accruing or arising in IndiaCorrect
- BOnly income earned from salary abroad
- CGlobal income irrespective of where it arises
- DOnly income remitted to a foreign bank account
Explanation
A non-resident is taxed in India only on income received or deemed received in India, or that accrues or arises (or is deemed to) in India. Global income taxation applies to residents and ordinarily resident persons, so the global-income option is wrong.
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