The most common first question from NRI clients is: am I even taxed in India this year? The answer depends entirely on residential status — which is recalculated every financial year.

How Residential Status Is Determined

Status as Resident, NRI, or RNOR is based on days spent in India during the financial year and preceding years. Always verify for the specific financial year.

What Income Is Taxable in India for NRIs

  • Rent from Indian property — fully taxable
  • Capital gains on sale of Indian assets (property, shares, mutual funds)
  • Interest on NRO accounts — taxable, TDS usually deducted at source
  • Interest on NRE accounts — generally exempt for genuine NRIs

DTAA Relief

India has DTAA agreements with over 90 countries. If you have paid tax in your country of residence, you may be entitled to relief in India. Many NRIs miss this — resulting in paying tax twice on the same income.

Residential status is recalculated every financial year — what applied last year may not apply this year.

Our NRI advisory team works across time zones. Contact us →