INCOMES TOTALLY EXEMPT FROM INCOME TAX

The following incomes earned by an NRI are totally exempt from Income Tax:

Interest earned on NRI, FCNR and RFC Bank Accounts and Deposits. Interest on RFC A/c is exempt even after the NRI becomes a resident until the time he enjoys the status of 'not ordinarily resident' for tax purposes.

NRI ASSETS EXEMPT FROM WEALTH TAX

No wealth Tax is payable in India by any person on all productive assets. Thus all financial assets such as bank balances, shares, units, debentures, securities, deposits etc. are totally exempt from wealth tax.
Even one residential house and any number of commercial buildings are totally exempt from wealth tax. Even one residential house and any number of commercial buildings are totally exempted from wealth tax.
The only taxable assets are lands, residential houses (if more than one), jewellery and ornaments, motorcars, aircrafts and cash balances in excess of Rs. 50,000. Even these assets, if brought into India by a returning NRI or if acquired by him within one year of his return to India, would qualify for wealth tax exemption for a period of seven assessment years.

The following incomes earned by an NRI enjoy concessional tax treatment @ 20% under the Indian Income Tax Act :

Investment Income arising out of specified foreign exchange assets, being shares of an Indian company, debentures or deposits of an Indian public company and Central Government securities subscribed through foreign currency remittances or out of NRE / FCNR / A/cs.