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NRI Taxation

NRI Taxation: The Basics Every NRI Should Know

Being classified as a Non-Resident Indian changes how — and how much of — your income gets taxed in India.

Residential Status Comes First

Your tax liability in India depends primarily on your residential status for the year, determined by the number of days you've stayed in India — not your citizenship or passport.

An NRI is generally taxed in India only on income that is earned or received in India — not on global income, unlike a resident.

Income Typically Taxable for NRIs

Rental income from property in India.

Capital gains on sale of Indian assets (property, shares, mutual funds).

Interest on NRO accounts and Indian fixed deposits.

Any salary or business income earned in India.

Common Areas Worth Getting Right

TDS is usually deducted at source on NRI income, often at a higher rate than for residents — this can sometimes be reduced under a Double Taxation Avoidance Agreement (DTAA), if applicable.

Filing a return can help claim a refund where TDS deducted exceeds the actual tax liability.

NRI taxation depends heavily on individual facts (country of residence, income type, applicable DTAA). This is general information, not advice for a specific case.

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