Akshay Kumar is often pulled over by netizens over his Canadian citizenship even though he has never denied or concealed having a Canadian passport. A few years back, when his films were not playing. He applied for Canadian citizenship and got it. Akshay has also stated that, even though he is a Canadian citizen, he pays all his taxes in India.
Now the question is, if Akshay Kumar is a Canadian citizen then why does he pay tax in India? Actually Akshay Kumar Recognized by Income Tax Authorities As the country’s “highest tax payer” in FY22. The Income Tax Department awarded an honorary certificate to Akshay, who is doing the rounds online.
To understand this, we must know how NRIs pay taxes in India. Your salary income is taxable in India, or it is taxable by someone else on your behalf. So if you are an NRI and get your salary directly in Indian account then you will be liable for Indian tax rules. This income is taxed at the applicable slab rate.
NRIs are subject to 20% income tax when they invest in specific Indian properties. If NRI’s particular investment income is their only source of income for the entire financial year and TDS is withheld, they are exempted from filing income tax return.
For NRIs, income from property located in India is taxable. Income from immovable property is taxed at appropriate slab rates. The method used to determine this income should be the same as that used for residents, regardless of whether the property is vacant or rented. While paying rent to an NRI in India, you have to deduct TDS at the rate of 30%.
Even if you are an NRI, if your salary is paid for services rendered by you in India, it will be taxed in India. If you provide services in India, your salary will appear to be coming from India.
Any capital gain on the sale of any capital asset situated in India shall be subject to taxation there. Investments in Indian securities and shares will also be subject to taxation in India. When you sell the house and earn long-term capital gains, the buyer is required to deduct TDS at the rate of 20%.
Business and other sources
Fixed deposit and savings account interest is taxed in India if it is held in Indian bank accounts. Tax free interest is available on NRE and FCNR accounts. The interest on the NRO account is fully taxed. An NRI has to pay tax on any income derived from a business controlled or established in India.
NRIs have to pay advance tax if their tax liability for a given financial year exceeds 10,000. If advance tax is not paid, interest u/s 234B and 234C is applicable.