I am an Indian currently residing in US for the past 3 months. I have not converted any of my savings account to NRI accounts since the period of stay in the US is expected to be short. I have purchased a property in India which is financed by a home loan from SBI. I would like to remit money from my US checking account to my SBI account towards loan repayment. Will this amount be taxed in India? Is there a limit to the amount that can be remitted? Any references or citations would be really helpful.
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1 Answer
If you are still Indian Citizen for Tax purposes, then all your Global Income is taxable [There are certain exemption if you are in certain professions]. So even if you transfer or not transfer the funds to India, it is taxable in India. If you are getting a per day allowance, its exempt, this has to be looked more as expense reimbursed. If you are saving from per day allowance, well whatever you have save is to be declared as additional income and pay tax accordingly.
If you are NRI for tax purposes, there is no limit on the amount of funds that you can send to India. Note that it would help to transfer funds into a separate NRI/NRO account to ensure traceability and ease of taxation.