India Income Implications
As a Non-Resident Indian (NRI), earning income from India—like rent from property, dividends, interest, or pensions—means you may still have to deal with Indian taxes. The rules can feel confusing, especially when you’re also paying taxes in your country of residence. This page breaks down how Indian income is taxed for NRIs, what you need to declare, and how to stay compliant with both Indian and international tax regulations.
Even if you live abroad, any income that arises in India is taxable in India. Here’s a quick breakdown:
| Type of Income | Taxable in India? | Notes |
|---|---|---|
| Rent from property in India | Yes | Subject to TDS and annual return filing |
| Interest from NRO accounts | Yes | TDS applies |
| Interest from NRE/FCNR | No | Tax-free as long as you retain NRI status |
| Dividends from Indian shares | Yes | Taxable at normal slab rates (TDS may apply) |
| Capital gains (stocks/property) | Yes | Taxed as short-term or long-term gains |
| Pension from Indian employer | Yes | Taxed based on slab; TDS deducted at source |
| Salary received in India | Yes | Taxable if earned for services rendered in India |
Who Qualifies as an NRI for Tax Purposes?
Under the Indian Income Tax Act, your residential status determines your tax liability, not just your citizenship or passport.
You’re treated as an NRI if:
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You spend less than 182 days in India during the financial year (April 1 – March 31)
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OR you were in India for less than 60 days during the financial year and less than 365 days in the past four years
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Your residential status is assessed every financial year, so it can change.
Repatriation & Tax Documentation
When transferring money from India to your overseas account:
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Income must be legally earned and tax-paid
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Submit Form 15CA (self-declaration of tax payment) and Form 15CB (CA certificate)
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Repatriation of NRO account funds is limited to $1 million per financial year
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NRE and FCNR balances are fully repatriable without restrictions.
Avoiding Double Taxation: DTAA Benefits
India has Double Taxation Avoidance Agreements (DTAA) with over 90 countries.
If your income is taxable in India and again in your country of residence (e.g., UK, US, UAE), you can:
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Claim a tax credit in your resident country
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Or pay reduced TDS rates in India (e.g., 15% on dividends instead of 20%)
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To claim DTAA benefits, submit:
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Tax Residency Certificate (TRC) from your resident country
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Form 10F
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Self-declaration of beneficial ownership
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Key Compliance Tips
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Keep your PAN card active and linked with your accounts
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Update your residential status with your bank every year
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Ensure your bank account types (NRE/NRO) are correctly classified
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File Form 15G/H if eligible to avoid TDS on interest
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Don’t ignore your tax obligations in India—even small incomes can lead to notices if not reported properly