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Following
are the incomes of NRIs that are exempt from income tax Interest on specified
securities or bonds, including income by way of premium on the redemption
of such bonds.
Interest
on Non-Resident External Account [NRE] and Foreign Currency Non-Resident
Account [ FCNR].
Interest
on Notified Savings Certificates, subscribed in convertible foreign exchange.
National Savings Certificates VI and VII issues have been notified for
this purpose. However, sale of these Certificates have been discontinued
from 1st April, 1989.
Tax on salary
income of a foreign technician paid by the employer, such tax paid is
not a perquisite in the hands of such technician.
Remuneration
received by non-Indian citizen as employee of a foreign enterprise for
service rendered in India.
Salary received
by a non-resident, who is not a citizen of India, for services rendered
in connection with his employment on a foreign ship provided that his
total stay in India does not exceed 90 days in the previous year.
Remuneration
received by an individual who is not a citizen of India as an employee
of the Government of foreign State during his stay in India in connection
with his training in any establishment/office/undertaking owned by the
Government.
Allowances
or perquisites paid or allowed as such outside India by the Government
to its employee who is a citizen of India for rendering service outside
India.
Foreign
income and remuneration received by an individual who is assigned duties
in India from Government of a foreign State for services rendered in connection
with co-operative technical assistance programmes and projects in accordance
with an agreement entered into by the Central Government and the Government
of a foreign State.
Foreign
income and remuneration or fee received by a consultant, being an individual,
who is either not a citizen of India or being a citizen of India, is not
ordinarily resident in India, or any other person, being a non-resident.
Foreign income
and remuneration received by an individual who is an employee of the consultant
referred above and is either not a citizen of India or, being a citizen
of India, is not ordinarily resident in India.
Foreign
income of any member of family of person referred to in three section
above
Interest
on Non-resident (Non-Repatriable) Rupee Deposit Account [NRNR]. Interest
on NRNR account is not exempt from income tax when a person acquires the
status of Resident but not Ordinary Resident.
Interest
earned on Foreign Currency (Ordinary Non-Repatriable Deposit Account [
FCONR]. Under this section, any interest on deposits in foreign currency
with a schedule bank, if a scheme approved by the Reserve Bank of India
is exempt. This exemption is also available to a person who is not ordinarily
resident. Interest on Resident Foreign Currency account [ RFC] is exempt
till such time as NRI maintains the status of Not Ordinarily Resident.
Interest
on bonds issued under the Gold Deposit Scheme, 1999.
Income of
European Economic Community derived in India by way of interest, dividends
or capital gains from investment made out of its funds under notified
scheme.
Income of SAARC fund for Regional Projects set up under Colombo Declaration
issued on 21stDecember, 1991.
Any income by way of-
(i)
dividends specified
(ii)
income received in respect of unit from the Unit Trust of India established
under the Unit Trust of India Act, 1963 (52 of 1963); or
(iii)
income received in respect of units of a mutual fund specified
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