1Do NRIs pay tax on global income in India?
No — an NRI is taxed only on income that arises or is received in India. Global income stays out of the Indian net, which is why getting your residential status right each year is so important.
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ArticleAs an NRI, you're taxed in India only on income that arises here — not your global income. Getting your residential status, account types and treaty relief right is where the real saving lies. Here's how NRIs can manage Indian tax efficiently. Residential status and treaty positions are confirmed case by case, so confirm yours before acting.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
NRIs are taxed only on Indian income — so residential status, DTAA relief, the right accounts and TDS planning are what matter. Here's the NRI tax guide.
Your tax depends entirely on whether you're a non-resident, resident-but-not-ordinarily-resident, or resident for the year, which turns on your days in India. Track your days carefully — a few extra days can change your status and bring global income into the Indian net. This is the single most important NRI tax decision.
Interest on an NRE account and on FCNR deposits is generally exempt from Indian tax for an NRI, while NRO account income is taxable. Routing funds through the appropriate account for their purpose keeps exempt income exempt and taxable income properly accounted for.
India has Double Taxation Avoidance Agreements with most countries, so income taxed abroad isn't taxed twice — you claim relief either by exemption or by foreign tax credit. Get a Tax Residency Certificate from your country of residence and file the required forms to claim it.
NRIs face higher TDS on many Indian incomes — rent, interest, capital gains on property sales. Where your actual tax is lower, you can apply for a lower/nil deduction certificate, and you can always file a return to claim a refund of excess TDS. Don't let over-deducted TDS sit unclaimed.
NRIs can still claim many old-regime deductions on Indian income — 80C items like life insurance and ELSS, 80D health insurance, and home-loan interest under Section 24(b). Some deductions are restricted for NRIs, so check eligibility, but the core ones are available.
No — an NRI is taxed only on income that arises or is received in India. Global income stays out of the Indian net, which is why getting your residential status right each year is so important.
Generally no — NRE and FCNR interest is exempt for an NRI , while NRO account income is taxable. Routing funds through the right account keeps exempt income exempt.
Through the DTAA between India and their country of residence — claiming either exemption or a foreign tax credit. A Tax Residency Certificate and the required filing are needed to claim treaty relief.
Moving abroad or back, or selling Indian property as an NRI? Write to the firm and we'll get your status and TDS right.