How Residential Status Is Decided
An individual is a Non-Resident (NRI) for tax if they do not qualify as resident. Broadly, you are resident if you stay in India for 182 days or more in the year, or 60 days or more in the year and 365 days or more in the preceding four years. Indian citizens or persons of Indian origin visiting India get relaxed day limits (120 days, with additional conditions for high Indian income). Status is checked every year.
What Is Taxable for an NRI
NRIs are taxed in India only on income earned or received in India, such as: - Rent from Indian property - Interest on NRO accounts and FDs (interest on NRE accounts and FCNR deposits is exempt while you remain NRI) - Capital gains on Indian shares, mutual funds and property - Salary for services rendered in India - Dividends from Indian companies
Foreign income is not taxed in India for an NRI.
TDS to Watch
- NRO interest: TDS at 30% plus surcharge and cess (treaty rate may be lower)
- Sale of property by an NRI: buyer deducts TDS under Section 195 on the capital gain at 12.5% (long-term) or applicable rates – use a lower-deduction certificate (Form 13) to avoid excess TDS
- Rent paid to an NRI: TDS at 30% under Section 195
Do NRIs Need to File an ITR?
Yes, when Indian taxable income exceeds the basic exemption limit, when you want to claim a TDS refund, or when you have capital gains. Filing is also needed to carry forward losses.
DTAA – Avoiding Double Taxation
India has Double Taxation Avoidance Agreements with many countries. To claim a lower rate you generally need: - Tax Residency Certificate (TRC) from your country of residence - Form 10F filed on the income-tax portal - A self-declaration for the payer
Repatriation Under FEMA
- Up to USD 1 million per financial year can be remitted from NRO accounts (sale proceeds of assets or inherited funds) after paying taxes, with Form 15CA/15CB
- Current income such as rent and dividend can be repatriated after TDS
- NRE and FCNR balances are freely repatriable
NRI Tax Filing with FinTaxVers
We handle NRI ITR filing, lower-TDS certificates, property-sale tax planning, Form 15CA/15CB and FEMA advice for NRIs with India-based income.
Call / WhatsApp: +91-8928895195 | Email: contact@fintaxvers.com
*Note: Treaty rates and RBI limits are revised from time to time. Verify before remitting or filing.*
How is NRI status decided for tax?
You are resident if you stay in India 182 days or more in the year, or 60 days or more in the year plus 365 days in the previous four years; relaxed limits apply to Indian citizens or persons of Indian origin visiting India. Otherwise you are a non-resident.
Is NRE account interest taxable in India?
No, interest on NRE and FCNR deposits is exempt for a person who is a non-resident under tax law. NRO interest is taxable with 30% TDS.
How much can an NRI repatriate from India?
Up to USD 1 million per financial year from NRO balances, including sale proceeds of assets, after paying taxes and filing Form 15CA/15CB.