The Government grappling with economic crisis one after the other is upping its ante against tax evaders. In a couple of years or so, a slew of measures have been announced to keep a strong tab on taxation and bring tax evaders to justice. Things can become more complicated if you are an NRI and not well-versed with taxation laws governing non-residential Indians. It is therefore important to know whether you are liable to pay tax as an NRI and Do NRIs Have to Pay Advance Tax.

Do NRIs Have to Pay Advance Tax?

Do I have to pay taxes in India if I am an NRI?

As an NRI, you are exempted from paying taxes in India if you do not earn anything in the country. You do not have to pay taxes in India in case you are not earning anything here. However, if you are making money in the country, you will be taxed as per the existing laws.

Do NRIs Have to Pay Advance Tax?

As an NRI, if your tax liability exceeds Rs 10,000 in a financial year, you are required to pay advance tax. Failure to do so will entail an interest on the outstanding liability under Section 234B and Section 234C of the I-T Act. Advance tax is a part payment of your tax liabilities, and the individual pays as he earns under the scheme. The tax is applicable if you are making money through the sale of property, income from a house property situated in India, interest earned on investments, profits gained through business, etc.

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