India me NRI tax ka complete Hinglish guide FY 2026-27 — Section 6 residency tests, TDS rates, DTAA benefits, NRO vs NRE income, property sale, ITR-2 filing.
NRI ko sirf Indian-source income par tax lagta hai India me — global income tax-free in India (foreign country me hi taxable). Common Indian income types: NRO interest, equity / property capital gains, rental, dividend. DTAA ke through TDS rate significantly reduce ho sakti hai (e.g., NRO interest 30% → 15% with TRC + Form 10F).
Test 1: 182+ din
Current FY me 182+ din India me ho → RESIDENT (worldwide income taxable in India).
Test 2: 60 din + 365 din rule
60+ din current FY + 365+ din previous 4 FYs (cumulative) → RESIDENT. Indian citizens jo employment ke liye abroad jate hain, sirf Test 1 (182-day) apply hota hai.
Test 3: Indian citizens / PIOs ka special rule
Indian citizens / PIOs visiting India with Indian-source income > ₹15 lakh: 60-day threshold 120 din ho jata hai FY 2020-21 se. High-net-worth returning NRIs ke liye relevant.
RNOR (Resident but Not Ordinarily Resident)
Stay < 730 din previous 7 years + non-resident 9 of 10 previous years → RNOR. Taxed like NRI (sirf Indian-source). Transitional status, returning NRIs ke liye useful 2-3 saal ke liye.
| Income Type | TDS Rate | Section |
|---|---|---|
| NRO interest (savings / FD) | 30% default, 10-15% with DTAA | Section 195 |
| Equity LTCG ({'>'}12 months) | 12.5% above ₹1.25L exemption | Section 196 |
| Equity STCG ({'<'}12 months) | 20% | Section 196 |
| Property sale (LTCG, {'>'}24 months) | 12.5% on gross consideration | Section 195 |
| Rental income (India property) | 30% default | Section 195 |
| Dividend (Indian companies) | 20% default, 10-15% with DTAA | Section 196D / 195 |
| Crypto / VDA gains | 30% + 1% TDS | Section 115BBH + 194S |
DTAA TDS rates reduce kar sakti hai — TRC + Form 10F submit karo deductor ko before payment. Use /in/tools/nri-tds-calculator interactive calculation ke liye.
NRE Account
NRO Account
Richify tracks aapka India + foreign portfolio ek app me. Felix flag karta hai DTAA filing requirements, TDS refund opportunities surface karta hai, aur RNOR utilisation decide karne me help karta hai return ke time.
Download Richify — FreeSection 6 of Income Tax Act 1961 me 3 residency tests hain jo determine karte hain aap NRI ho ya nahi. (1) 182+ din India me current FY me → Resident (global income taxable in India). (2) 60+ din current FY + 365+ din cumulatively previous 4 FYs me → Resident (employment ke liye abroad jaane wale Indian citizens ke liye yeh test apply nahi). (3) Indian citizens / PIOs visiting India with Indian-source income > ₹15 lakh: 60-day threshold 120 din ho jata hai FY 2020-21 se. Agar dono tests fail → NRI status (sirf Indian-source income taxable). RNOR: stay < 730 din previous 7 years + non-resident 9 of 10 previous years → taxed like NRI, transitional status returning NRIs ke liye 2-3 saal.
NRE (Non-Resident External): foreign income remitted to India ke liye. Foreign currency ya INR me hold. Principal + interest DONO non-residents ke liye fully tax-free in India. Fully repatriable. NRO (Non-Resident Ordinary): India-source income (rental, dividend, interest, pension) ke liye. INR me only. Interest TAXABLE at 30% TDS under Section 195 — DTAA can reduce to 10-15% with TRC + Form 10F. Principal repatriable up to USD 1 million per FY with proper documentation. Joint with resident allowed. RFC (Resident Foreign Currency): returning NRIs ke liye jab NRE/FCNR balances convert hote hain — interest tax-free if RNOR, taxable when ordinary resident. Most NRIs maintain BOTH NRE + NRO accounts.
Jab NRI India me property bechta hai, BUYER ko Section 195 ke under TDS deduct karna padta hai (Section 194-IA jo resident sellers ke liye hai — alag hai). LTCG (property held > 24 months): 12.5% pe ENTIRE SALE CONSIDERATION (sirf gain nahi) WITHOUT indexation, post 23 July 2024. Pre-Jul-2024 purchases retain option of 20% with indexation. STCG: 30% TDS. Yeh TDS gross sale value par hota hai — often massive over-deduction. NRI files ITR-2, computes actual gain, claims refund of excess TDS. Pro tip: Form 13 (Lower Deduction Certificate) BEFORE sale apply karo from IT Department — buyer can deduct TDS at actual gain rate, avoid cash flow crunch.
DTAA (Double Taxation Avoidance Agreement) treaties between India aur 90+ countries (USA, UK, Canada, Australia, UAE, Singapore, Germany, etc.) — DTAA prevents same income ko twice tax hone se — ek baar India me (source country) aur ek baar resident country me. Two methods: (1) Exemption method — income sirf ek country me tax. (2) Tax Credit method (more common) — India me tax pay karo, resident country credit deti hai. DTAA benefit claim karne ke liye NRI ko provide karna padta hai: (a) TRC (Tax Residency Certificate) from resident country. (b) Form 10F (self-declaration). (c) PAN in India. DTAA TDS rates significantly reduce kar sakti hai: NRO interest 30% → 10-15%, dividends 20% → 5-15%, capital gains often source country me hi taxable. India-USA DTAA particularly favourable on interest aur dividends (15%).
ITR filing MANDATORY hai NRI ke liye agar: (1) Total Indian income basic exemption se zyada hai (₹3L old regime / ₹4L new regime). (2) Foreign assets hold karte ho — disclosure mandatory under Black Money Act 2015. (3) TDS deducted at source — even if income below exemption, refund claim ke liye ITR file karna padega. (4) Capital gains transactions in India. NRIs CANNOT file ITR-1 (Sahaj) — must file ITR-2 (no business income) ya ITR-3 (business income wale). Section 87A rebate (₹60K new regime up to ₹12L income, ₹12.5K old up to ₹5L) NRIs ke liye AVAILABLE NAHI. Standard deduction ₹75K new / ₹50K old salary income par AVAILABLE hai. Filing deadline: 31 July (non-audit), 31 October (audit).
Partial yes — NRI kuch deductions claim kar sakte hain, sab nahi. ALLOWED: Section 80C up to ₹1.5 lakh (LIC premium, ELSS, EPF, NSC, home loan principal — NRI naye PPF accounts open nahi kar sakte but existing ones continue till maturity). Section 80D health insurance (₹25K self/family, ₹50K senior parents). Section 80E education loan interest (no cap). Section 80G donations to specified charities. NOT ALLOWED: Section 80TTA (interest on savings — NRIs NRO interest at 30% taxed). Section 80TTB (senior citizen interest deduction). HRA exemption Section 10(13A) — only for salaried in India with employer-paid HRA. Section 87A rebate. NRIs typically old tax regime use karte hain to claim 80C/80D + Section 24(b) interest deduction — new regime favourable only when total deductions < ₹4-5 lakh.
Haan — NRI Indian mutual funds me invest kar sakte hain, equity aur debt dono. Conditions: (1) NRI status update karwana padega AMC me (most platforms — Groww, Zerodha Coin, Kuvera — NRI KYC support karte hain). (2) NRE / NRO bank account linked hona chahiye — investments from NRE accounts repatriable hote hain; NRO se non-repatriable. (3) FATCA / CRS declaration mandatory hai (USA-based NRIs ke liye Form W-9 type). (4) PAN + Aadhaar required. Some AMCs USA / Canada NRIs ko investment NAHI allow karte due to compliance burden — Vanguard, Fidelity equivalent FATCA rules. Workaround: Indian broker via demat (Zerodha NRI, ICICI Direct NRI) jo equity + MF dono support karte hain. NRI ELSS bhi invest kar sakte hain — 80C deduction + 3-year lock-in + equity LTCG 12.5%.
Haan — NRI CAN purchase residential ya commercial property in India (FEMA permits). NAHI khareed sakte: agricultural land, plantation property, ya farmhouse — sirf inherit ya gift receive kar sakte hain. Payment NRE / NRO / FCNR accounts ya normal banking channels se honi chahiye (cash NAHI allowed). Selling: NRI sell kar sakta hai resident, NRI, ya PIO ko. Property hold > 24 months = LTCG (12.5% post-Jul-2024 without indexation). Repatriation rules: sale proceeds from up to 2 residential properties per LIFETIME repatriable to NRE account (with FIRC + Form 15CA/15CB). Excess proceeds + commercial property NRO me go karte hain + need RBI approval for repatriation above USD 1 million per FY.
Haan — agar NRI ki Indian tax liability (after TDS) ₹10,000 se zyada hai annual basis par, advance tax mandatory hai 4 quarterly instalments me (same as residents): 15 June (15%), 15 September (45%), 15 December (75%), 15 March (100%). TDS typically over-deducts on NRO interest, rental, property sale — to often actual advance tax small hota hai. But agar dividend income > ₹10L ho ya capital gains realise ki ho mid-year, advance tax pay karni padti hai us quarter me. Section 234B/234C interest 1%/month for shortfall — NRI ko bhi apply hota hai. Payment Challan ITNS-280 via incometax.gov.in se kar sakte ho from abroad — NRE / NRO account se debit. Senior citizen exemption (60+ no business income) applies to NRI seniors bhi — full advance tax exemption.