NRI & Global Taxation3 min read

NRI Taxation in India: Residential Status, Taxable Income and Key Rules

Non-resident Indians are taxed in India only on certain income. Here is how residential status is decided and what is taxable.

GOURAV CHOUDHARY1 Nov 2026

If you live abroad but earn or own assets in India, your Indian tax liability depends on your residential status for the year. It is determined by days spent in India, not by citizenship.

How residential status is decided

You are generally a resident if you meet either of these tests in a year:

You stay in India for 182 days or more during the year, or
You stay 60 days or more in the year and 365 days or more in the four preceding years.

The 60-day condition is relaxed to 182 days for an Indian citizen or person of Indian origin who visits India, and for a citizen who leaves India for employment abroad or as a crew member of an Indian ship. A further rule treats an Indian citizen with Indian income above ₹15 lakh who is not taxable in any other country as a resident but “not ordinarily resident”. If you do not meet the residency tests, you are a non-resident. Day-count details should be checked each year, since they decide your whole tax position. These rules continue under the Income-tax Act, 2025 with new section numbers.

What is taxable in India for an NRI

Income received or deemed received in India.
Income that accrues or arises in India, such as rent from Indian property, capital gains on Indian assets, interest from Indian accounts and income from a business connection in India.
Foreign income earned abroad is generally not taxable in India for a non-resident.

NRE, NRO and FCNR accounts

NRE account: holds foreign earnings converted to rupees. Interest is exempt from tax in India while you remain a non-resident, and the balance is freely repatriable.
NRO account: holds India-sourced income such as rent. Interest is taxable, and repatriation is allowed within prescribed limits and with required certificates.
FCNR deposit: a foreign currency deposit, with interest generally exempt while non-resident.

TDS on NRI income

Payers must deduct TDS at rates that are often higher than for residents, depending on the type of income. For example, property sale proceeds are subject to TDS on the capital gains element, and rent paid to an NRI attracts TDS at a higher rate. An NRI can apply for a lower deduction certificate where the actual tax is lower. See our guide on TDS returns for deductor obligations.

Relief from double taxation

India has tax treaties with many countries. Under these, you can generally claim credit in your country of residence for tax paid in India, or claim treaty rates on certain income, if you hold a tax residency certificate and file the required forms.

Filing and remittance

An NRI must file an Indian return if taxable income exceeds the basic exemption limit, or to claim a refund. Remittance of funds abroad generally requires Form 15CA and, in many cases, 15CB certificates.

Frequently asked questions

Is NRE account interest taxable in India?

No, not while you are a non-resident. NRO account interest is taxable.

How many days in India make me a resident?

182 days or more in a year, or 60 days plus 365 days in the previous four years, subject to relaxations for certain persons.

Do NRIs have to pay tax on foreign income?

Generally no. Only income received in, or arising in, India is taxable for a non-resident.

Can an NRI claim a refund of excess TDS?

Yes, by filing an Indian income tax return.

This article is for general information only and is not professional advice. Rules, fees and forms change and vary by state, so confirm the latest position with the official portal or a qualified professional before acting.