If you are an NRI with income from India — rental income, dividends, interest from NRO accounts, capital gains from shares or property — you may have an Indian tax filing obligation. Here is everything NRIs need to know for FY 2024-25.
Determining Your Residential Status
Your tax liability depends on whether you are “Resident” or “Non-Resident” under the Income Tax Act. You are Non-Resident in India if you stayed less than 182 days in India during the financial year, or less than 365 days in the 4 preceding years plus less than 60 days in the current year. NRIs are taxed only on income sourced from India.
Common Income Sources for NRIs
Rental income: Taxable in India. TDS of 31.2% is deducted by tenant (or by buyer’s CA on NRI’s behalf). Can claim 30% standard deduction and home loan interest. Interest on NRO accounts: Fully taxable, subject to 30.9% TDS. Interest on NRE and FCNR accounts is exempt. Capital gains from Indian shares/property: Taxable at applicable rates. DTAA may provide relief.
DTAA Relief
India has treaties with 90+ countries. If you are paying tax in your country of residence on the same India income, you can claim relief under the relevant DTAA article. This requires a Tax Residency Certificate (TRC) from your country and Form 10F filing in India. Our NRI specialists handle the complete DTAA claim process.
📌 Need Help With This?
Our CA experts can help you with all aspects covered in this article. Get a free consultation today.