Residential status, NRE/NRO accounts, Indian property, TDS, DTAA basics and returning to India.
Last updated 2026-06-12 · Covers FY 2025-26 and FY 2026-27
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Residential status is decided by day-count and specific Indian tax rules, not by passport alone. Count India-stay days for the relevant financial year and apply the resident/non-resident/RNOR tests. A mid-year move can still leave you resident for that year.
2What is RNOR and why does it matter when I return?
RNOR is a transitional status for some returning Indians. It can limit taxation of foreign income for a period after return, depending on past residency and stay history. The day-count history matters, so compute it before filing.
3Does citizenship decide whether I am resident for tax?
Residential status is decided by day-count and specific Indian tax rules, not by passport alone. Count India-stay days for the relevant financial year and apply the resident/non-resident/RNOR tests. A mid-year move can still leave you resident for that year.
B · Bank accounts and filing
4Is NRE interest really tax-free? What about NRO?
NRE interest is generally exempt for a non-resident; NRO interest is generally taxable in India. NRO accounts are meant for Indian income and usually suffer TDS. Resident accounts should normally be redesignated when status changes.
5Do I need to file an ITR if I only have NRE interest?
NRE interest is generally exempt for a non-resident; NRO interest is generally taxable in India. NRO accounts are meant for Indian income and usually suffer TDS. Resident accounts should normally be redesignated when status changes.
6Can an NRI keep using a resident savings account?
Money transfers by themselves are not automatically income. Tax depends on source and relationship: remittance of your own funds is different from Indian income, rent, capital gains or taxable gifts.
C · Indian income and DTAA
7US salary plus Indian rental — where is what taxed?
India taxes Indian-source income for non-residents; DTAA relief prevents or reduces double taxation where conditions are met. Home-country treatment depends on that country's law, so keep the Indian answer separate from foreign tax advice.
8How does DTAA relief work in plain language?
India taxes Indian-source income for non-residents; DTAA relief prevents or reduces double taxation where conditions are met. Home-country treatment depends on that country's law, so keep the Indian answer separate from foreign tax advice.
9Do I pay tax in India on money sent home?
Money transfers by themselves are not automatically income. Tax depends on source and relationship: remittance of your own funds is different from Indian income, rent, capital gains or taxable gifts.
D · Property and TDS
10Selling my Hyderabad flat from the US — what is the TDS?
NRI property sales usually attract section 195 TDS on the buyer side, often at a higher effective rate than resident sales. A lower-deduction certificate can reduce cash blockage where the actual gain is lower than the gross sale consideration.
11Can I apply for a lower-deduction certificate?
NRI property sales usually attract section 195 TDS on the buyer side, often at a higher effective rate than resident sales. A lower-deduction certificate can reduce cash blockage where the actual gain is lower than the gross sale consideration.
12Sending money to parents — taxable for them?
Money transfers by themselves are not automatically income. Tax depends on source and relationship: remittance of your own funds is different from Indian income, rent, capital gains or taxable gifts.
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This guide is general information for understanding the topic, not advice on your specific situation, and not solicitation of work. Tax positions turn on your full facts and on the law in force for the relevant year. Confirm your position with a qualified professional before acting.