Assessment of NRIs

A non-resident may be assessed to tax in India either directly or through agents. Persons in India who may be treated as 'agent1 of a non-resident are:-

i. employee or trustee of the non-resident;

ii. any person who has any business connection with the non-resident;

iii. any person from or through whom the non-resident is in receipt of any income;

iv. any person who has acquired a capital asset in India from the non-resident.

A broker in Indian who has independent dealings with a non-resident broker acting on behalf of a non-resident principal is, however, not treated as an 'agent' of the non-resident, if the transactions between the two brokers are carried on in the ordinary course of their business.

Before any person is treated as an 'agent' of non-resident, he is given an opportunity of being heard and any representation from him in the matter is considered.