Comprehensive tax solutions for NRIs, including income tax filing, compliance, and
advisory on Indian income. Our experts ensure hassle-free management of tax obligations with full legal
accuracy and transparency.
ITR Filing (Salary)
Form 16 Processing
Tax Saving Advisory
Notice Handling
Overview
NRI?
Indian Citizen or person of Indian Origin + Non- Resident
The taxability of a Non-Resident Indian (NRI) is primarily governed by the source-based taxation
principle under the Income Tax Act, 1961 and 2025, and the provisions of the Foreign Exchange
Management Act (FEMA). Unlike residents, NRIs are liable to pay tax in India only on income that is
earned, accrued, or received within the Indian territory, such as rental income from local property,
capital gains from Indian assets, or interest on NRO accounts. To determine this liability, one must
first establish residential status under Section 6, which depends on the duration of physical stay
during the financial year. Furthermore, NRIs can optimize their tax burden by leveraging Double
Taxation Avoidance Agreements (DTAA), ensuring they are not taxed twice on the same income across
different jurisdictions. This framework aims to balance domestic revenue interests with the global
mobility of the Indian diaspora.
To be an NRI for tax purposes in the current year, you must generally Not a resident of India, stay
in India for less than 182 days or do not meet other residential criteria defined in the Act.
If you visit India frequently, ensure your stay is less than 60 days (or 120/182 days depending on
your income level and citizenship status).
Taxability of NRI Income
NRI is taxable in India only when the Income is Accrue or arise in
India or is received in India or deemed to accrue or arise in India (Includes Salary,
House property, capital gain, Interest (NRO Account), dividend)
When to File return?
When Gross Total Income (before any type of deductions) is exceeding
the Basic Exemption Limit applicable in that period. As per New Regime (i.e. Default)
mandatory threshold limit is ₹4,00,000. In case tax has been deducted at source (TDS) to
claim your refund must file your return even if income is below the threshold limit
Filing Deadlines
For A.Y. 2026-27 is 31st July 2026 in case of non- audit return and
31st October 2026 in case of audit (unless extended).
Which ITR Form to File?
ITR-2 is commonly filed by NRI in case of income is salary income,
income from house property, capita gain and ITR-3/ ITR-5 is filed is any income from
business or profession in India.
Benefits of filing return?
Claim refunds for excess TDS deducted, establish proof of income for
visa or bank purposes, avoid penalties and interest under Sections 234A, 234B, and 234C.
Income Tax Slab in New Regime (Section 115BAC)
Taxable Income (₹)
Tax Rate
Up to ₹4,00,000
Nil (0%)
₹4,00,001 – ₹8,00,000
5%
₹8,00,001 – ₹12,00,000
10%
₹12,00,001 – ₹16,00,000
15%
₹16,00,001 – ₹20,00,000
20%
₹20,00,001 – ₹24,00,000
25%
Above ₹24,00,000
30%
On top of the above tax, Health & Education Cess @ 4% is charged on the total tax
liability.
Surcharge
New Tax Regime the maximum surcharge is capped at 25%, even if income exceeds ₹5
crore.
FAQ
Frequently Asked Questions
Who is considered an NRI for income tax
purposes?
An individual is treated as a Non-Resident Indian (NRI) if they do not meet
the residential conditions under Section 6 of the Income Tax Act, 1961. Generally, if you
stay in India for less than 182 days during the financial year, you will qualify as an NRI.
Is NRI income taxable in India?
NRIs are taxed in India only on income that is earned, received, or arises in
India. This includes salary earned in India, rent from Indian property, capital gains from
Indian assets, and interest from NRO accounts. Income earned outside India is not taxable in
India.
When does an NRI need to file an Income Tax Return
(ITR)?
An NRI must file an ITR if their gross total income exceeds ₹4,00,000 under
the New Tax Regime. Even if income is below this limit, filing is necessary to claim a TDS
refund.
Most NRIs file:
Most NRIs file:
ITR-2 for salary, house property, or capital gains income
ITR-3 if they have business or professional income in India
Choosing the correct form ensures proper compliance and avoids notices.
Can NRIs avoid double taxation?
Yes, NRIs can claim benefits under the Double Taxation Avoidance Agreement
(DTAA). This helps avoid paying tax twice on the same income in two countries, provided
proper documents like a Tax Residency Certificate (TRC) are submitted.
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