If you have an RNOR status and earn income from the following sources, you need not pay RNOR income tax in India. These are the following income heads:
Rent from abroad: This is the income earned from renting out property in a foreign country. For instance, the rental income you earn from renting a house/apartment overseas.
Dividend or interest received from investing in deposits and securities: The earnings generated through investments or from dividends or interest payments as investment returns.
Withdrawals from offshore retirement accounts: If you are saving for retirement in an offshore account, and when you decide to access those funds, the withdrawals made from these accounts will be tax-free.
Capital gains from abroad: Capital gains refer to the profits earned from selling assets such as stocks, real estate, or other investments. This applies if you sell assets located in foreign countries and make a profit.
NRE deposit and interest on FCNR deposits, if converted into RFC: NRE deposits are denominated in Indian rupees, while FCNR deposits are held in foreign currencies. If you convert your FCNR deposits into RFC accounts, you can still earn tax-free interest on those deposits.
If you have an RNOR status and want to purchase a life insurance policy for your family’s security, you can simply opt for NRI insurance plans. These policies are designed to offer life cover protection to Non-Resident Indians and those with an RNOR status and their families. With NRI insurance , you can purchase the policy in India and manage the premium payments from another country, which ensures uninterrupted life insurance coverage for your family back in India.
A Tata AIA life insurance policy has several benefits that enable you to purchase any NRI policy of your choice and make the premium payments per your preference. Moreover, depending on your residential status, you can also enjoy the tax benefits of these life insurance policies and the policy benefits.