NRI Income Tax Return in Delhi: Understanding Exemptions and Deductions
Introduction Living abroad as a Non-Resident Indian (NRI) while having income sources in India requires adherence to specific taxation laws. Understanding the nuances of NRI taxation, especially regarding exemptions and deductions, is crucial for NRIs filing income tax returns in Delhi. Let's delve deeper into this realm to grasp the essentials. Determining Residential Status The first step in comprehending NRI taxation is determining your residential status for the financial year. As per Indian tax laws, an individual is considered an NRI if they reside in India for less than 182 days in a financial year. This classification significantly influences the taxation of income earned both within and outside India. Exemptions for NRIs NRIs are entitled to certain exemptions under the Income Tax Act. One of the primary exemptions is on income earned outside India, which is not taxable in India. However, it's crucial to understand the criteria for such exemptions and ensure complianc