NRI tax filing in India: what you need to know

NRIs are taxed in India only on income that arises in India or is received there. Common India-sourced income includes NRO FD interest, rental income from Indian property, capital gains from Indian shares or mutual funds, and dividends from Indian companies. NRE FD interest is generally exempt from Indian income tax for eligible non-residents.

TDS is deducted automatically before income reaches NRIs. Banks deduct TDS on NRO FD interest at up to 30% plus surcharge. If your actual Indian tax liability is lower — because your income is below the exemption limit or because a DTAA treaty reduces your rate — you can claim the excess TDS as a refund by filing an income tax return.

A Double Taxation Avoidance Agreement (DTAA) between India and your country of residence can reduce the applicable Indian tax rate on specific income types. To use DTAA relief, you typically need a Tax Residency Certificate (TRC) from your country of residence and a self-declaration to the bank or payer before the financial year ends.

Advance tax applies to NRIs with Indian income above ₹10,000 in a year. It is paid in four instalments: 15 June, 15 September, 15 December and 15 March. Failing to pay advance tax on time attracts interest under Sections 234B and 234C.

Quick answer

File an Indian income tax return by 31 July if your India-sourced income exceeds the basic exemption limit. Collect Form 26AS to see TDS already deducted. Consult a CA with NRI experience for the correct ITR form and advance tax estimate.