An NRI’s salary is taxable in India regardless of where the salary is earned or received. This is because the NRI is a citizen of India and the employer is the government. Therefore, any salary earned by an NRI will be taxed in India. The income is taxable at the slab rate of the particular financial year. Similarly, if an NRI receives a salary for services rendered outside India, it will be taxed in India as well.

For example, Ajay, an Indian citizen, worked for a Chinese company for 3 years, and needed a salary in India to support his family. He would have been taxed on this salary if it had been earned in India. However, he had owned property in India, so his salary from his Indian employer is taxable in India. As such, he could have sold the property in India and received a profit that was tax-free in his home country.

Nandini owns a house property in Goa and lives in Bangkok. She set up the rent payments to be received in Bangkok, but her income is taxed in India. She is required to remember to deduct 30% of the amount for the TDS. Alternatively, rent payments can be received to an account in India or the NRI’s current residence. If the rent payment is made to an NRI, the NRI must remember to deduct 30% TDS from the money before transferring it to their account.

OCI cardholders are entitled to open an OCI account, but can’t open an NRE or FCNR (B) account. However, NRIs have the advantage of access to public services and can apply for public office. The only difference between the two is the voting right. PIOs cannot vote, but NRIs can run for public office. In addition to this, both PIOs and NRIs have OCI cards that indicate their immigration status in India and give them the right to live in the country indefinitely.

In general, the term “NRI” refers to an Indian citizen living abroad. Non-Resident Indians are Indian citizens who are abroad for a long period of time. Non-Resident Indians may be studying in a foreign country, working in a foreign country, or have family members living in India. Regardless of the reason for the NRI status, however, they are Indian citizens. In order to maintain legal status, they must also pay income taxes on their income from India.