NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Tax Provisions for Special Cases
Which of the following statements about the taxation of a Non-Resident Indian (NRI) in India is correct?
A non-resident is taxed in India only on income received or deemed received in India, or accruing or arising, or deemed to accrue or arise, in India. Income earned and received abroad is not taxable in India.
- AGlobal income is taxed in India irrespective of residential status
- BOnly income received or accruing in India, or deemed to accrue or arise in India, is taxableCorrect
- CIncome earned abroad and received abroad is taxable in India
- DNRIs are not taxable in India on any income
Explanation
A non-resident is taxed in India only on income that is received or deemed to be received in India, or accrues or arises or is deemed to accrue or arise in India. Foreign income received abroad is outside the tax net.
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