Taxability of income is determined based on taxable status, source of income and derivation of income. Below matrix depicts a high-level tax incidence based on taxable status.
For taxable status refer (FY2020-2021 : Non-Resident Indian Status Determination)
|
Taxable Status |
Tax incidence |
|
Resident & Ordinarily Resident |
All global income is taxable India, subject to double taxation agreement. |
|
Resident, but not Ordinarily Resident |
Income is taxable in India if income is earned and received India |
|
Non-Resident |
Income actually earned in India or deemed to be earned in India |