Liability of non resident individual and company to pay tax in India and to file the return

[madhavvan n]

when is a non resident individual liable for tax in india if he receives any fees or any income for his services rendered in india is he required to file his return in india in case of non resident company if it receives fees or income in india is it required to file its return in india

[Guest]

mr madhavan as far my knowledge goes, any income which accrues/arises or is deemed to accrue/arise in India during the PY whether received in India or not is ta taxable in the hands of a NRI.Hence he must file the ITR

[Rajib Dass]

The non-resident is liable to tax, if the icome is accrued or deemed to be accrued in India, irrespective of the receipt of the income. For filing of the income tax return with this the Income Tax Department, we have to see the residential status of the person.

[Rama Krishana]

Yes, for the income accrue or arise in India, a non resident individual is subject to income tax in India. A person payment amount to non resident would also deduct tax under section 195. However, if may take the benefit of DTAA if any in his favor if existing between India and the country of that individual.

AI Summary

Non-residents taxed on income from India services; must file returns. Section 195 tax deductions may apply. A non-resident individual or company is liable to pay tax in India if they receive income or fees for services rendered in India. This income is taxable regardless of whether it is received in India. Non-residents must file an income tax return if their income accrues or arises in India. Additionally, tax deductions under section 195 may apply to payments made to non-residents. Non-residents can potentially benefit from Double Taxation Avoidance Agreements (DTAA) if applicable between India and their country of residence. The requirement to file a return also depends on the individual's residential status.