Why Many NRIs Pay More Tax Than Necessary in India
Every year, thousands of NRIs end up paying more tax than required. Non-resident Indians lose money simply because they are unaware of the tax provisions, treaty benefits, exceptions, and planning opportunities. It results in missed refunds, reduced return investments, and higher tax deductions. The Indian tax system is genuinely complex to navigate from abroad, and for that reason, NRIs need an NRI tax consultant in India. The blog explains why many NRIs pay more tax than necessary in India. Misinterpreting taxable income in India One of the major reasons for tax overpayment is when NRIs misunderstand what income is actually taxable in India. NRIs are generally taxed only on income received or earned in India, like capital gains, rental income, dividends, etc. However, a large number of NRIs assume that all global income is taxable in India; hence, they end up paying more tax than they are supposed to. DTAA goes unused India has Double Taxation Avoidance Agreements with over 90 count...