Who Is Considered an NRI for Income Tax Purposes?
Under the Income Tax Act, 1961 (Section 6), an individual is classified as a Non-Resident Indian (NRI) if they do NOT meet the criteria for being a resident of India during a financial year.
📅 Residential Status Criteria (FY 2024-25 onwards)
You are RESIDENT if you satisfy ANY ONE of the following:
- 1.Present in India for 182 days or more during the financial year, OR
- 2.Present in India for 60 days or more during the FY + 365 days or more in preceding 4 years
If you DO NOT meet either condition, you are NON-RESIDENT (NRI).
Example 1: NRI Classification
Mr. Sharma lives and works in the USA. He visits India for 45 days during FY 2024-25 (vacation). In the previous 4 years (FY 2020-21 to 2023-24), he was in India for a total of 180 days.
✅ Status: NRI (does not meet 182-day test or 60+365 test)
Example 2: Resident Classification
Ms. Kapoor works in Dubai but frequently visits India. She spends 200 days in India during FY 2024-25.
❌ Status: RESIDENT (meets 182-day test — NOT an NRI for tax purposes)
⚠️ Special Cases
- →Indian citizens working abroad: 60-day limit increased to 182 days if total Indian income (excluding foreign income) does not exceed ₹15 lakh
- →Deemed Residency: If you are Indian citizen with total income > ₹15 lakh and NOT liable to tax in ANY other country, you may be deemed resident (even if outside India)
- →RNOR vs. ROR: Residents are further classified as Resident Not Ordinarily Resident (RNOR) or Resident Ordinarily Resident (ROR) based on additional criteria
Taxvio provides expert residential status determination for NRIs — analyzing days in India, previous year status, income thresholds, and DTAA implications — ensuring correct tax filing across Khatauli, Muzaffarnagar, Noida, Delhi NCR, and pan-India online.
What Income Is Taxable for NRIs in India?
NRIs are taxed in India ONLY on income earned or accrued in India. Foreign income is NOT taxable in India for NRIs (unlike residents who are taxed on worldwide income).
Rental Income from Indian Property
If you own property in India and rent it out, rental income is taxable in India under 'Income from House Property'. TDS @ 30% is deducted by tenant if annual rent > ₹2.4 lakh (Section 194-IB) or @ 30% by tenant (if NRI) under Section 195.
📊 Tax Rate
As per income tax slab after standard deduction (30% of NAV or ₹2 lakh, whichever is lower)
🔻 TDS Rate
30% (can be reduced to 10-15% under DTAA)
💡 Example
Annual rent ₹6 lakh → TDS deducted ₹1.8 lakh → Actual tax (after deductions) may be ₹60,000 → Claim ₹1.2 lakh refund via ITR
Capital Gains on Sale of Property/Shares
Sale of property or shares in India attracts capital gains tax. Long-term capital gains (LTCG) on property held >24 months taxed @ 20% with indexation benefit. LTCG on listed equity shares/mutual funds >12 months taxed @ 10% (above ₹1 lakh). Short-term capital gains taxed as per slab rates.
📊 Tax Rate
LTCG: 20% (property with indexation), 10% (equity); STCG: Slab rates or 15% (equity)
🔻 TDS Rate
20% on LTCG (property) under Section 195; 1% TDS on sale proceeds >₹50 lakh (Section 194-IA)
💡 Example
Sold flat for ₹1 crore (bought 10 years ago for ₹30 lakh) → Indexed cost ₹50 lakh → LTCG ₹50 lakh → Tax @ 20% = ₹10 lakh
Interest on NRO Fixed Deposits/Savings Account
Interest earned on NRO (Non-Resident Ordinary) bank accounts, fixed deposits, recurring deposits is taxable in India. TDS @ 30% deducted by bank (Section 194A). Interest on NRE (Non-Resident External) and FCNR accounts is TAX-FREE in India.
📊 Tax Rate
As per income tax slab (0% to 30%)
🔻 TDS Rate
30% (can be reduced to 10-15% under DTAA with Form 10F)
💡 Example
NRO FD interest ₹2 lakh → TDS deducted ₹60,000 → Actual tax (if no other income) ₹0 → Claim ₹60,000 refund
Salary from Indian Employer
If you work for an Indian company while being NRI (rare, but possible if services rendered abroad), salary income is taxable in India. If salary is for services rendered IN India (even if you are NRI), it's taxable in India. DTAA provisions apply.
📊 Tax Rate
As per income tax slab after standard deduction (₹50,000)
🔻 TDS Rate
TDS as per applicable rates under Section 192
💡 Example
Worked in India for 3 months, earned ₹3 lakh → Taxable in India → File ITR-2 to claim deductions/DTAA relief
Business/Professional Income in India
If you run a business or provide professional services in India (even remotely), income is taxable in India. Permanent Establishment (PE) rules under DTAA determine taxability. Freelance income from Indian clients is taxable.
📊 Tax Rate
As per slab rates after business expenses and deductions
🔻 TDS Rate
10% TDS on professional fees (Section 194J); 2% on contract payments (194C)
💡 Example
Freelance consulting fees ₹10 lakh from Indian clients → TDS ₹1 lakh → Net receipt ₹9 lakh → File ITR-2/ITR-3
Other Income (Dividends, Royalties, etc.)
Dividends from Indian companies taxable @ slab rates (dividend distribution tax abolished from FY 2020-21). Royalties, technical fees, director fees from Indian entities taxable. Lottery/gambling winnings taxed @ 30%.
📊 Tax Rate
Dividends: Slab rates; Royalties: 10-20% under DTAA; Lottery: 30%
🔻 TDS Rate
10% on dividends (Section 194); 10% on royalties (Section 194J)
💡 Example
Dividend income ₹50,000 → TDS ₹5,000 → Taxable as per slab
Complete NRI ITR Filing Process (Step-by-Step)
NRIs typically file ITR-2 (for salary, capital gains, rental income, foreign income) or ITR-3 (for business income). Here's the complete process:
Residential Status Determination
1 dayTaxvio calculates your days in India (from passport stamps), determines if you are NRI/RNOR/ROR, and assesses tax implications. We identify if you qualify for DTAA benefits based on tax residency in another country.
Income Compilation & Classification
2-3 daysWe gather details of ALL Indian-source income: Rental income (rent agreement, tenant details, TDS certificates - Form 16A), Capital gains (sale deed, purchase deed, indexation computation), Interest on NRO accounts (bank interest certificates, Form 26AS), Salary/business income (Form 16, invoices, contracts), Dividends, royalties, other income. Foreign income details (if any) for Schedule FA/FSI reporting.
TDS & Tax Paid Verification
1 dayWe download Form 26AS (Annual Tax Statement) from e-filing portal to verify: TDS deducted by tenants (194-IB/195), bank (194A), buyers (194-IA), employer (192). Advance tax or self-assessment tax paid (if any). We reconcile TDS with actual income and identify discrepancies.
DTAA Benefit Analysis & Application
2-3 daysWe analyze applicable DTAA treaty between India and your country of residence (USA, UK, UAE, Singapore, etc.). We compute tax savings under DTAA (reduced TDS rates, exemptions). We prepare Form 10F (self-declaration for DTAA benefit) and supporting documents. If TRC (Tax Residency Certificate) from foreign country is available, we attach it for maximum DTAA benefit.
Deduction & Exemption Optimization
1-2 daysWe claim all applicable deductions: Section 80C (maximum ₹1.5 lakh - LIC, PPF, ELSS), Section 80D (health insurance premium), Section 80TTA/TTB (interest on savings account), Standard deduction on rental income (30% of NAV or ₹2 lakh), Home loan interest (Section 24b), Capital gains exemptions (Section 54/54EC/54F). We choose between Old Tax Regime vs. New Tax Regime for optimal tax savings.
ITR-2 Form Preparation
2-3 daysWe prepare ITR-2 with complete details: Personal information, residential status (NRI), Indian income sources, capital gains computation with indexation, rental income with property details, TDS details from Form 26AS, deductions claimed, tax computation, Schedule FA (Foreign Assets - if any), Schedule FSI (Foreign Source Income - if applicable), Form 10F attachment (DTAA benefit). We ensure 100% accuracy and compliance with Income Tax rules.
Online ITR Filing & Verification
1 dayWe file ITR-2 online on Income Tax e-filing portal using your credentials (or we can file using our Digital Signature Certificate - DSC). We obtain ITR acknowledgment number. We verify ITR using Aadhaar OTP, EVC, or physical ITR-V (as applicable for NRIs). ITR must be verified within 30 days of filing.
Refund Claim & Tracking
2-6 monthsIf excess TDS is deducted, refund is claimed in ITR. We track refund processing on e-filing portal. Refund is directly credited to your pre-validated Indian bank account (NRE/NRO). Typical refund processing time: 2-6 months. We provide regular status updates and follow-up with ITD if delays occur.
✅Total Timeline
Complete ITR filing: 7-10 days from document submission to ITR filing and verification. Refund processing (if applicable) takes 2-6 months depending on ITD workload.
Documents Required for NRI ITR Filing
Mandatory Documents
- ✓PAN card (copy)
- ✓Passport (copy with visa pages showing entry/exit stamps to India)
- ✓Aadhaar card (if available)
- ✓Form 26AS (downloaded from e-filing portal - shows TDS details)
- ✓Bank account details (NRE/NRO account for refund credit)
- ✓Previous year ITR acknowledgment (if filed)
Income-Specific Documents
- ✓Rental income: Rent agreement, tenant PAN/Aadhaar, monthly rent receipts, Form 16A (TDS certificate from tenant)
- ✓Capital gains: Sale deed, purchase deed, indexation calculation, proof of improvements, Form 16A (TDS by buyer)
- ✓Interest income: NRO FD/savings bank interest certificate, Form 16A from bank
- ✓Salary: Form 16 (if salary from Indian employer), salary slips, employment contract
- ✓Foreign income proof: Foreign salary slips, bank statements, tax returns filed abroad (for Schedule FSI)
- ✓DTAA documents: Tax Residency Certificate (TRC) from country of residence, Form 10F self-declaration
How NRIs Can Claim TDS Refund
NRIs often face 30% TDS on rental income, NRO interest, and capital gains — which is usually much higher than actual tax liability. Here's how to claim refund:
📊 TDS Refund Scenario Analysis
Rental Income - High TDS
Income: Annual rent: ₹6 lakh
TDS Deducted: TDS @ 30% = ₹1,80,000
Actual Tax: After standard deduction (30% of NAV = ₹1.8 lakh) → Taxable income ₹4.2 lakh → Tax @ 20% slab = ₹42,000
💰 Refund claimable = ₹1,80,000 - ₹42,000 = ₹1,38,000
NRO FD Interest - Excess TDS
Income: FD interest: ₹2 lakh
TDS Deducted: TDS @ 30% = ₹60,000
Actual Tax: If no other Indian income → Total income ₹2 lakh (below ₹2.5 lakh exemption limit) → Actual tax = ₹0
💰 Full refund = ₹60,000
LTCG with DTAA Benefit
Income: Property sale LTCG: ₹20 lakh
TDS Deducted: TDS @ 20% = ₹4,00,000
Actual Tax: With India-UAE DTAA, LTCG taxed @ 10% (treaty rate) = ₹2,00,000
💰 Refund with DTAA = ₹2,00,000
Multiple Income Sources
Income: Rent ₹3L + Interest ₹1L + Dividend ₹50K = ₹4.5L
TDS Deducted: Total TDS = ₹90K + ₹30K + ₹5K = ₹1,25,000
Actual Tax: After deductions (80C ₹1.5L, standard deduction on rent) → Taxable ₹2L → Tax ₹10,000
💰 Refund = ₹1,15,000
✅ Steps to Claim TDS Refund
- Collect all TDS certificates (Form 16A) from tenant, bank, buyer
- Verify TDS details in Form 26AS (download from e-filing portal)
- File ITR-2 claiming all deductions and DTAA benefits (if applicable)
- In ITR, total tax paid (TDS + advance tax) will be compared with actual tax liability
- If TDS > actual tax, refund amount is auto-calculated in ITR
- Verify ITR within 30 days of filing (mandatory for refund)
- ITD processes refund and credits to your pre-validated bank account (2-6 months)
- Track refund status on e-filing portal under 'Refund/Demand Status'
💡 Pro Tips to Maximize TDS Refund
- →Submit Form 10F and TRC from your country of residence to claim DTAA benefits (reduces TDS rate from 30% to 10-15%)
- →Request tenant/bank to deduct TDS at lower rate (under Section 197 certificate) — avoids refund waiting time
- →Pre-validate your NRE/NRO bank account on e-filing portal to ensure smooth refund credit
- →File ITR before July 31 deadline to get faster refund processing (post-deadline filings processed later)
- →Claim all applicable deductions (80C, 80D, etc.) even as NRI to reduce tax liability and increase refund
- →If refund is delayed beyond 6 months, raise grievance on e-filing portal or contact Assessing Officer
DTAA Benefits for NRIs (Country-Wise)
Double Taxation Avoidance Agreement (DTAA) allows NRIs to reduce or eliminate double taxation on same income in both India and country of residence. Here's how DTAA benefits NRIs in popular countries:
🇺🇸 India-USA DTAA (for NRIs in USA)+
📊 Rental Income from India
❌ Without DTAA
30% TDS in India + taxed again in USA
✅ With DTAA
15% TDS in India (with Form 10F + US TRC) + claim Foreign Tax Credit (FTC) in USA for Indian tax paid
📊 Interest on NRO FD
❌ Without DTAA
30% TDS in India
✅ With DTAA
15% TDS in India (with TRC) + claim FTC in USA
📊 Capital Gains on Property Sale
❌ Without DTAA
20% LTCG tax in India + taxed in USA
✅ With DTAA
20% LTCG tax in India (as per treaty, India has primary taxing rights) + claim FTC in USA
🇦🇪 India-UAE DTAA (for NRIs in Dubai/UAE)+
📊 Rental Income
❌ Without DTAA
30% TDS in India (UAE has 0% tax, so no relief)
✅ With DTAA
12.5% TDS in India (with UAE TRC and Form 10F) — significant savings
📊 Interest Income
❌ Without DTAA
30% TDS
✅ With DTAA
12.5% TDS with DTAA
📊 Capital Gains
❌ Without DTAA
20% LTCG
✅ With DTAA
10% LTCG (treaty rate) — saves 10% on entire LTCG
🇬🇧 India-UK DTAA (for NRIs in UK)+
📊 Rental Income
❌ Without DTAA
30% TDS in India + UK tax (20-40%)
✅ With DTAA
15% TDS in India + claim FTC in UK for Indian tax paid
📊 Pension from India
❌ Without DTAA
Taxed in both countries
✅ With DTAA
Taxable only in country of residence (UK) — exempt in India with DTAA claim
🇸🇬 India-Singapore DTAA+
📊 Interest Income
❌ Without DTAA
30% TDS in India
✅ With DTAA
15% TDS with TRC
📊 Capital Gains on Shares
❌ Without DTAA
Taxed in both countries
✅ With DTAA
Taxable only in country of residence (India or Singapore depending on where shares are located)
📋How to Claim DTAA Benefits
- Obtain Tax Residency Certificate (TRC) from your country of residence (USA, UAE, UK, Singapore, etc.)
- Fill Form 10F (self-declaration for DTAA benefit)
- Submit TRC + Form 10F to Indian deductor (tenant, bank, buyer) BEFORE TDS is deducted
- Deductor will deduct TDS at treaty rate (instead of 30%) as per DTAA
- If TDS already deducted at 30%, claim refund by filing ITR-2 with Form 10F and TRC attachment
- In ITR, mention DTAA country and article number in Schedule TR (Tax Relief)
- If claiming Foreign Tax Credit (FTC) in your country of residence, file Form 67 in India (for residents) or equivalent in foreign country
Taxvio's NRI Tax Filing Services
Complete end-to-end NRI tax compliance — from residential status determination to ITR filing, DTAA application, and refund tracking.
NRI Residential Status Assessment
Detailed analysis of days in India (passport verification), determination of NRI/RNOR/ROR status, assessment of DTAA applicability, professional opinion on tax residency.
💰 ₹999
ITR-2 Filing (Simple - Rental/Interest)
Complete ITR-2 preparation and filing for NRIs with simple income sources (rental income from 1 property, interest on NRO FD). Includes Form 26AS verification, TDS reconciliation, basic deductions (80C, 80D), online filing, and e-verification.
💰 ₹2,999
ITR-2 Filing (Complex - Capital Gains)
ITR-2 filing for NRIs with capital gains (property sale, shares), multiple properties, business income. Includes indexation calculation, exemption claims (54/54EC/54F), DTAA benefit computation, Form 10F filing.
💰 ₹5,999
DTAA Benefit Application & TRC Support
Complete DTAA treaty analysis, Form 10F preparation, TRC application assistance (if needed from India), submission guidance to deductors, treaty rate computation, Schedule TR filling in ITR.
💰 ₹3,999
TDS Refund Claim & Follow-Up
Specialized service for NRIs who have excess TDS deducted. We file ITR optimizing all deductions and DTAA benefits to maximize refund. Includes refund tracking and ITD follow-up until credit.
💰 ₹1,999 (+ 5% of refund amount)
Form 10F & Lower TDS Certificate
Preparation of Form 10F for DTAA benefit. Application for Lower TDS Certificate under Section 197 (if applicable). Coordination with tenant/bank for reduced TDS deduction.
💰 ₹1,499
Foreign Income Reporting (Schedule FA/FSI)
If you have foreign assets (bank accounts, property, shares abroad) or foreign income (even if exempt in India), reporting in Schedule FA (Foreign Assets) and Schedule FSI (Foreign Source Income) is mandatory. We prepare accurate disclosures.
💰 ₹2,499
NRI Tax Planning & Advisory
Strategic tax planning for NRIs — optimizing rental income taxation, capital gains exemptions, DTAA benefits, repatriation planning, NRE vs. NRO account strategy, return to India tax planning.
💰 ₹4,999
📦 Complete Package Pricing
Basic NRI Filing
₹2,999
- ✓Residential status check
- ✓ITR-2 (rental/interest)
- ✓Form 26AS verification
- ✓Basic deductions
- ✓E-filing & verification
Standard (with DTAA)
₹5,999
- ✓Everything in Basic
- ✓DTAA benefit analysis
- ✓Form 10F filing
- ✓Capital gains (1 property)
- ✓Refund tracking
Premium (Complete)
₹9,999
- ✓Everything in Standard
- ✓Multiple properties/gains
- ✓Foreign income reporting
- ✓Tax planning advisory
- ✓Priority support
Real Stories from NRIs We've Helped
"I have 2 rental properties in India. Banks and tenants were deducting 30% TDS (₹3.5 lakh annually). Taxvio helped me file ITR with DTAA benefits and got ₹2.2 lakh refund. They also applied for Lower TDS Certificate for next year. Excellent NRI tax experts!"
Amit Patel (NRI - USA)
California → India
"Sold my flat in Mumbai and had ₹15 lakh LTCG. Buyer deducted 20% TDS. Taxvio filed my ITR claiming India-UAE DTAA benefit at 10% treaty rate and got me ₹1.5 lakh refund. Very professional and responsive team."
Priya Sharma (NRI - Dubai)
Dubai → India
"I was confused about residential status and foreign income reporting. Taxvio clearly explained my NRI status, filed ITR-2 with Schedule FA for my UK bank accounts, and claimed DTAA relief. Refund of ₹85,000 received in 4 months. Highly recommended for NRIs."
Rajesh Kumar (NRI - UK)
London → India
NRI Tax Filing Services — Worldwide Support
Taxvio is based in Khatauli, Muzaffarnagar, UP and provides specialized NRI tax filing services for Indians living in USA, UK, UAE, Singapore, Canada, Australia and 90+ countries worldwide. Complete online support via email, WhatsApp, and video calls.
Frequently Asked Questions — NRI Tax Filing
What is the ITR filing deadline for NRIs?+
Can NRIs file ITR-1 (Sahaj)?+
Is it mandatory for NRIs to report foreign assets and income in ITR?+
Can NRIs claim deduction under Section 80C, 80D while filing ITR?+
How long does it take to get TDS refund for NRIs?+
Do NRIs need to pay advance tax?+
Can Taxvio file ITR on behalf of NRIs if they are abroad?+
File Your NRI ITR Today
Complete NRI Tax Filing & Compliance
Expert ITR-2 filing for NRIs with Indian income. Complete TDS refund claims, DTAA benefit application, foreign income reporting, capital gains computation. Serving NRIs in USA, UK, UAE, Singapore, and worldwide. Starting ₹2,999.