Akshay Kumar has a Canadian passport; then why does he pay taxes in India?
2 min read 14 Aug 2022, 02:13 PM ISTAkshay Kumar has said that, even though he is a Canadian citizen, he pays all his taxes in India.
PremiumAkshay Kumar often gets pulled by netizens over his Canadian citizenship even though he has never hidden or denied having a Canadian passport. A few years ago, when his films were not working. He applied for Canadian citizenship and got it. Akshay has also said 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, why does he pay taxes in India? In fact, Akshay Kumar has been recognised by the Income Tax authorities as the nation's "highest taxpayer" in FY22. The Income Tax Department awarded Akshay with an honorary certificate, which has been making the rounds online.
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To understand this, we must know how NRIs pay taxes in India. Your salary income is taxable in India, or it is taxed on your behalf by someone else. You will therefore be liable to Indian tax rules if you are an NRI and get your salary directly into an Indian account. This income is taxed at the applicable slab rate.
Investment
NRIs are subject to a 20% income tax when they invest in specific Indian assets. If the NRI's special investment income is their only source of income for the whole fiscal year and TDS has been withheld, they are exempt from filing an income tax return.
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Real Estate
For NRIs, income from a property located in India is taxable. Income from real estate is taxed at the appropriate slab rates. The method used to determine this income must be the same as that used for residents, no matter if the property is unoccupied or rented out. When paying rent to an NRI in India, you must deduct TDS at a rate of 30%.
Salary
Even if you are an NRI, if your pay is paid for services that you deliver in India, it will be taxed in India. If you provide services in India, your salary will be seen as coming from India.
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Capital Gain
Any capital gain on the sale of a capital asset located in India will be subject to taxation there. Investments in Indian securities and shares will also be subject to taxation in India. When you sell a home and make a long-term capital gain, the buyer is required to deduct TDS at a 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 accrues on NRE and FCNR accounts. NRO account interest is wholly taxed. An NRI must pay taxes on any income derived from a business controlled or established in India.
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Advance tax
NRIs are required to pay advance tax if their tax obligation for a given fiscal year exceeds ₹10,000. If advance tax is not paid, interest under Sections 234B and 234C is applicable.
