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INCOMES
TOTALLY EXEMPT
FROM INCOME TAX :
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The following incomes earned by an NRG are totally
exempt from Income Tax:
Interest earned on NRG, FCNR and RFC Bank Accounts and
Deposits. Interest on RFC A/c is exempt even after the NRG
becomes a resident until the time he enjoys the status of 'not
ordinarily resident' for tax purposes.
Interest earned on Units of the Unit Trust of India, if such Units
are invested through foreign currency remittances or out of
NRE/FCNR A/cs.
Interest earned on SBI Dollar Bonds or India Development
Bonds. This exemption can be availed even after the NRG
becomes a resident or by the person who has received such
bonds by way of gift.
Long -Term Capital Gains arising from the transfer of shares or
debentures subscribed through foreign currency remittances or
out of invested within six months in the purchase of shares or
debentures or deposits with public companies.
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NRG
ASSETS EXEMPT
FROM WEALTH TAX :
No wealth Tax is payable in India by any person on all productive
assets. Thus all financial assets such as bank balances, shares,
units, debentures, securities, deposits etc. are totally exempt
from wealth tax.
Even one residential house and any number of commercial
buildings are totally exempt from wealth tax. Even one residential
house and any number of commercial buildings are totally
exempted from wealth tax.
The only taxable assets are lands, residential houses (if more
than one), jewellery and ornaments, motorcars, aircrafts and
cash balances in excess of Rs. 50,000. Even these assets, if
brought into India by a returning NRG or if acquired by him within
one year of his return to India, would qualify for wealth tax
exemption for a period of seven assessment years. |
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