Tax on Investment Income
NRIs can invest in listed securities under Portfolio Investment Scheme.
Income in the nature of Long Term Capital Gains arising from sale of listed securities is taxed at the rate of 10%, if transaction of sale is effected on recognized stock exchange of India. To qualify as long term asset- the security should have been held for more than 12 months.
Income in the nature of Short Term Capital Gain (where listed securities are held for a period up to 12 months) is taxed @ 15%.
Capital Gains from Commercial and Residential Property
Long Term Capital Gain on sale of commercial or residential property which is held for a period of more than 36 months is subject to tax @ 20%. Short Term Capital Gain is subject to tax @ 30%.
Rental Income from Properties
Rental income (known under Income tax as House Property Income) is liable to tax as per slab rates which range on a progressive basis from 10% to 30%. Interestingly, Rental income qualifies for ad hoc deduction up to 30% of gross rent less municipal taxes.
Our service offering in this segment includes advising and assisting on taxation aspects of income earned by NRIs on their investments in India.