Residential status, Indian returns, foreign income and treaty relief.
A doctor in Manchester with rent from a flat in Mumbai, a consultant in Singapore who spends long holidays in India, a retired engineer dividing the year between Texas and Pune: each needs to know, first, how India regards them for the year.
Most Indian tax questions for an NRI begin in the same place: your residential status for the year. Whether you are non-resident (NR), resident but not ordinarily resident (RNOR) or resident and ordinarily resident (ROR) largely decides which of your income India can tax. It also decides whether you must disclose foreign assets in Schedule FA, which applies to those who are resident and ordinarily resident.
Status is worked out afresh for each year, from the days you spend in India and, depending on your circumstances, your earlier years of residence, your citizenship and the level of your Indian income. It is a different test from residence under FEMA, so the same person can be non-resident for one purpose and resident for the other.
The Income-tax Act, 1961 governs periods up to 31 March 2026 and the Income-tax Act, 2025 governs periods from 1 April 2026. Where a question spans both, the guide says which Act applies to which year.
Where to begin
- How residential status is determined
- Day counts when you visit India
- RNOR status and how long it lasts
- When an Indian citizen is treated as a deemed resident
- Filing an Indian return as an NRI
- Foreign tax credit, Schedule FSI and Schedule TR
- Treaty rates and tax deducted at source
A tax treaty can reduce or reallocate tax, but it does not remove tax or withholding on its own; its conditions and documents still have to be met. Where another country is involved, its tax and reporting position should be reviewed by an appropriately qualified professional in that country.
All guides in this section
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Forgot to Report a Foreign Asset in Your Indian ITR? What Can You Do?
Foreign assets omitted from an Indian tax return may require different corrective procedures depending on residential status, reporting obligations, source of investment, income and the relevant tax year. This guide…
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What Should You Do If Your Indian AIS Shows Foreign Assets or Income?
A foreign account or amount appearing in AIS is not automatically taxable income or a tax notice. Understand how to reconcile it with Indian residential status, reporting periods and ITR…
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How Are Foreign Dividends and Interest Taxed in India, and Can You Claim Foreign Tax Credit?
Foreign tax deducted by your overseas bank or broker does not settle your Indian tax position. Understand how residential status, gross income, FTC and reporting interact.
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Which ITR Form Should an NRI Use for Rental Income, Bank Interest and Capital Gains?
For an NRI with Indian rent, bank interest and capital gains, ITR-2 is usually the starting point. The correct schedules, taxable amounts and TDS credits need separate attention.
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Does a DTAA Automatically Reduce or Eliminate TDS on Income Paid to an NRI?
A DTAA may change Indian tax and sometimes TDS. The applicable payment category, treaty documents and withholding procedure determine the payer’s obligation.
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What Documents Do Non-Residents Need to Claim DTAA Relief in India?
A TRC and Form 41 support a non-resident’s DTAA claim in India. Understand the legal requirements, certificate periods, additional evidence and withholding distinctions.
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Can an OCI Be Non-Resident for Income Tax but Resident Under FEMA?
An OCI card does not determine residential status under Indian income-tax law or FEMA. The separate tests can produce different outcomes, affecting banking, deposit interest and foreign assets.
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When can an NRI become a deemed resident of India for income tax?
Indian citizens abroad can become deemed residents without meeting the ordinary day-count tests. The controlling conditions concern citizenship, income and foreign tax liability. A person covered by the rule is…
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How Many Days Can an NRI Visit India Without Becoming an Indian Tax Resident?
The number of days you visit India is only part of the residential-status test. Your income, previous travel and deemed-residence provisions can change the answer.
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Leaving India: How Will Your Income Be Taxed in the Year You Move Abroad?
Your departure date does not automatically change your Indian tax status. Here is how the year of leaving, purpose of departure, foreign salary and continuing Indian income interact.
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When Can India Tax an NRI’s Foreign Income Based on Source or First Receipt?
Foreign income, first receipt and subsequent remittance are different legal questions. Here’s how Indian residential status, income source and bank records affect the answer.
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Is Foreign Salary Taxable in India If It Is Credited to an NRE Account?
An Indian NRE credit does not decide foreign salary taxation. The controlling questions include residential status, where services were performed and where income was first received.
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How Do You Claim Foreign Tax Credit in India? Schedule FSI, TR and Required Forms
Foreign tax deducted abroad may differ from the credit India allows. Understand FTC eligibility, calculation, Schedules FSI/TR, Form 67 and Form 44.
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What is Schedule FA, and who must disclose foreign assets in an Indian ITR?
Schedule FA reports specified foreign assets and interests in an Indian income-tax return. Understand who must disclose them, the applicable reporting period and why disclosure is different from taxation.
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Does an NRI Need to File an Income Tax Return in India?
Indian income, TDS and NRI status do not by themselves decide whether an ITR is compulsory. Here are the filing rules, statutory exceptions and facts that change the answer.
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What Income Does India Tax When You Are NR, RNOR or ROR?
NR, RNOR and ROR have different Indian taxable-income scopes. Understand how source, first receipt, foreign income and residential status affect the result.
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When Is Indian Income-Tax Residence Different from FEMA Residence?
One person’s move can produce different classifications under Indian income-tax law and FEMA. Here’s what each law tests and why the distinction matters for your accounts and income.
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What Changes in Your First ROR Tax Year After Returning to India?
Your first ROR year can change how India taxes overseas income and reports foreign assets. Understand what changes, what does not, and which records matter.
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Who Qualifies as RNOR in India, and How Long Can RNOR Status Last?
RNOR turns on two historical tests and two special categories. Either test can qualify you, and the answer can change from one tax year to the next.
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How Is Indian Income-Tax Residential Status Determined for NRIs and Visitors?
Your Indian income-tax residential status depends on more than the 182-day rule. Learn how the applicable tests work for NRIs, visitors and returning Indians.