NRI Taxation in India: Complete Guide & Tax Rules#
NRI Taxation Basics#
An NRI (Non-Resident Indian) is taxed based on residential status.
Residential Status#
| Status | Days in India |
|---|---|
| Resident | 182+ days |
| RNOR | 60-182 days |
| Non-Resident | Less than 60 days |
NRI Income Taxable in India#
Indian Income:#
- Salary from India
- Property in India
- Capital gains from India
- Interest from Indian sources
Foreign Income:#
- Not taxable in India (unless remitted)
Tax Rates for NRIs#
Same as resident Indians:
- Up to Rs 2.5 lakh: Nil
- Rs 2.5-5 lakh: 5%
- Rs 5-10 lakh: 20%
- Above Rs 10 lakh: 30%
Deductions Available#
- Section 123 (if paying tax)
- Section 126 (health insurance)
- Home loan interest (property in India)
NRI Investments#
Allowed:#
- FCNR accounts
- NRO accounts
- NRE accounts (interest taxable)
- Mutual funds
- Real estate
Not Allowed:#
- PPF (only if became NRI)
- Senior citizens bonds
ITR Filing for NRIs#
- File if Indian income > Rs 2.5 lakh
- Can use Form 15CA/15CB for remittance
- E-verify with Indian mobile number