{"id":11470,"count":1,"description":"Introduction\u00a0<\/b>\r\n\r\nNRI directors of Indian companies may have Indian tax obligations depending on their residential status, the nature of income received from India and the applicable provisions of the Income-tax Act.<\/b> Simply being appointed as a director does not automatically mean that an NRI must pay tax on all income earned worldwide in India. The tax treatment depends on whether the individual is resident or non-resident for the relevant financial year and whether the income is taxable in India. Income such as director remuneration, salary, dividends, interest, rental income and capital gains may need to be examined separately. The Income Tax Department also provides different ITR forms depending on the taxpayer's status and income profile. <\/span>Income Tax Department<\/span><\/a>\r\n\r\nFor example, consider an NRI who is appointed as a director of an Indian private limited company and receives director remuneration. The remuneration may have Indian tax implications depending on the nature of the payment and the circumstances in which services are performed. If the NRI also receives dividends from the Indian company or earns capital gains from Indian investments, these may have separate tax consequences. <\/span>Tax Deducted at Source (TDS)<\/b> may also apply to certain payments made by the Indian company. Therefore, the company and the NRI director should properly document remuneration, deductions and other payments.<\/span>\r\n\r\nNRIs should also consider whether a <\/span>Double Taxation Avoidance Agreement (DTAA)<\/b> between India and their country of residence affects the taxation of particular income. Tax residency certificates and other prescribed documentation may be relevant when claiming treaty benefits. The exact tax position should be assessed based on the individual's circumstances. <\/span>Filing Point<\/b> can assist NRI directors with the corporate side of their appointment, including DIN, DSC, DIR-3, DIR-12 and ROC compliance, while the individual's income-tax position can be reviewed by a qualified tax professional.<\/span>\r\n\r\nParagraph 1 \u2013 What Income of an NRI Director Can Be Taxable in India?<\/b>\r\n\r\nAn NRI director may receive different forms of income connected with an Indian company. Each type of income should be examined under the applicable tax provisions rather than assuming that all payments receive the same treatment.<\/span>\r\n\r\nKey Points<\/b>\r\n