An NRI pays Indian tax only on income earned or received in India, such as rent, interest, capital gains and Indian salary. Residential status depends mainly on days spent in India: 182 days in a year makes you resident, and a lower 120-day test applies to some visiting Indians with Indian income above ₹15 lakh. The Income-tax Act, 2025 applies from 1 April 2026. Treaty relief needs a tax residency certificate and Form 10F. Repatriation from an NRO account is allowed up to USD 1 million a financial year.
NRI tax and FEMA: start with residential status
Everything turns on whether you are resident or non-resident in India for the year. The main test is physical presence: 182 days or more in India in the financial year makes you resident. There is an additional test based on 60 days in the year and 365 days over the previous four years, which for Indian citizens and persons of Indian origin visiting India is relaxed to 182 days, or 120 days if Indian income exceeds ₹15 lakh. An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country can be treated as resident even without visiting.
The Income-tax Act, 2025 came into force on 1 April 2026 and replaced the 1961 Act. The forms and section numbers have changed, but these residence principles continue. Getting your status right first avoids most notices later. See NRI income tax and DTAA.
Treaty relief and double taxation
India has tax treaties with most countries where NRIs live. A treaty can reduce Indian tax on interest or dividends, or let you claim credit abroad for tax paid in India. To claim treaty benefits in India you need a tax residency certificate from your country of residence and Form 10F. Income is usually reported in both countries, so your Indian and overseas returns should be prepared with each other in mind.
Selling property and taking money out
When a non-resident sells property in India, the buyer must deduct tax at source on the gain, and without planning that deduction can be far higher than the tax actually due. A lower deduction certificate applied for before the sale solves this. After the sale, money is moved abroad through the bank with Form 15CA and, where required, a chartered accountant's certificate in Form 15CB.
| Source of funds | Repatriation position |
|---|---|
| NRE and FCNR deposits | Freely repatriable |
| NRO balances, including sale proceeds and inheritance | Up to USD 1 million per financial year, after tax, with Form 15CA/15CB |
| Sale of property bought with foreign funds | Repatriable within limits set by FEMA rules |
See repatriation of funds and FEMA compliance for NRIs for account rules, gifts, loans and fixing past lapses.
Common mistakes we see
- Keeping resident savings accounts and investments after moving abroad instead of redesignating them as NRO accounts.
- Not filing an Indian return because tax was deducted at source, and so losing a refund of excess TDS.
- Claiming treaty relief without a tax residency certificate and Form 10F, so the benefit is denied.
- Selling property without applying for a lower deduction certificate, leaving a large amount locked up until the refund is processed.
- Sending money abroad through informal channels, which creates FEMA and tax problems that are expensive to fix.
- Ignoring a tax notice because it was sent to an old Indian address or email. Keep your contact details on the income tax portal current.
Which service do you need?
| Your situation | Service |
|---|---|
| You need to file an Indian return or answer a tax notice | NRI Income Tax & DTAA |
| You are selling property in India and the buyer will deduct TDS | TDS on Property Sale |
| You want to move sale proceeds, inheritance or savings abroad | Repatriation of Funds |
| Your accounts or investments may not comply with FEMA | FEMA Compliance for NRIs |
| You want treaty relief so Indian income is not taxed twice | NRI Income Tax & DTAA |
| You want to gift or lend money to family in India, or receive it | FEMA Compliance for NRIs |
All cross-border tax & money services
NRI Income Tax & DTAA
Residential status, returns, notices and treaty relief for NRIs.
Learn moreTDS on Property Sale
Lower deduction certificates, capital gains and Form 15CA/15CB.
Learn moreRepatriation of Funds
Moving sale proceeds, inheritance and savings from India within FEMA limits.
Learn moreFEMA Compliance for NRIs
Accounts, investments, gifts, loans and regularising past contraventions.
Learn moreFrequently asked questions
Do NRIs have to file an Indian tax return?
If Indian taxable income exceeds the basic exemption limit, or a return is needed to claim a refund of excess TDS or carry forward a loss, yes. Many NRIs file mainly to recover TDS deducted at higher rates.
Is interest on an NRE account taxable in India?
Interest on NRE deposits is exempt for a person who is non-resident or not ordinarily resident. NRO interest is taxable in India, with TDS.
Can I keep my resident savings account after moving abroad?
No. Under FEMA you should redesignate resident accounts as NRO accounts once you become a person resident outside India.
How much money can I send abroad from my NRO account?
Up to USD 1 million per financial year, out of balances on which tax has been paid, supported by Form 15CA and, where required, Form 15CB.
Will I pay tax twice on Indian income?
Usually not. The tax treaty between India and your country either limits Indian tax or lets you claim credit abroad for Indian tax paid.
Can past FEMA mistakes be fixed?
Yes. Many contraventions can be regularised by late filing with fees or by compounding through the RBI. Coming forward early is usually cheaper.