Last updated: April 2026

NRI tax compliance refers to the Indian tax obligations of Non-Resident Indians and Persons of Indian Origin. India taxes NRIs only on income that arises in or is received in India; Double Taxation Avoidance Agreements (DTAAs) prevent the same income from being taxed twice.

Key facts:

Residential status under Section 6 is the threshold determination — Resident, Resident-but-Not-Ordinarily-Resident (RNOR), or Non-Resident — and depends on days spent in India in the current and prior years.

Taxable in India for an NRI: Indian salary, rental income from Indian property, NRO interest, capital gains on Indian assets, dividend income from Indian companies. Not taxable: NRE and FCNR account interest.

DTAA relief requires a Tax Residency Certificate (TRC) from the country of residence and Form 10F filed online; without these, treaty rates don't apply.

Schedule FA of the ITR mandates disclosure of foreign assets (bank accounts, brokerage, real estate, signing authorities) for Residents and RNORs. Non-disclosure attracts penalties under the Black Money Act, 2015.

Section 195 TDS on NRI property sales is computed on the full sale consideration (20% LTCG / 30% STCG), not on the gain. A Form 13 lower-deduction certificate from the AO is the cure.

Example. An NRI selling a Mumbai flat for ₹2 crore can face TDS withholding of ₹40+ lakh at registration. Filing Form 13 before the sale, with cost-of-acquisition documentation, typically reduces the rate to the actual capital-gains tax liability.

Related: Indian Income Tax (/glossary/indian-income-tax-guide-revised-tax), Tax Deductions: India Guide (/glossary/tax-deductions-us-india-revised-tax), ReviseTax services (/service)