Which Income Is Taxable in India for NRIs?

I'm based in Australia and have investments in India.

My income includes NRO account interest, dividends, and occasional capital gains from mutual funds. I learned that just because I'm an NRI doesn't mean all my worldwide income is taxable in India. The focus is generally on income that is earned, received, or deemed to accrue in India.

I still recommend reviewing the latest Income Tax Department guidance every year because tax rules and reporting requirements can change.

I live in the UAE and sold an apartment in India a couple of years ago.

The capital gains from selling the property were taxable in India, and TDS was deducted at the time of sale. I later filed an ITR to calculate my final tax liability and claim a partial refund.

Apart from that, I also had dividend income from Indian companies. Since tax rules for dividends have changed over the years, I checked the latest provisions before filing my return.

I'm an NRI in Canada and file an ITR every year because I have rental income and interest from my NRO account.

In my case, both the rental income and NRO interest were considered taxable in India. I also claimed deductions that were available and ended up receiving a refund because more TDS had been deducted than my final tax liability.

My Canadian salary wasn't reported in India because it wasn't earned or received there. I still reviewed the DTAA provisions with my accountant before filing.

I'm based in the UK and have both NRE and NRO accounts.

One thing that confused me at first was the difference between them. The interest from my NRO account was treated differently from the interest on my NRE account, so I didn't want to rely on advice from random online posts.

I eventually spoke with a tax professional who reviewed my residential status, investment income, and applicable tax rules. Since tax provisions can change over time, I now get my Indian tax position reviewed every year before filing.

My situation is a little different because I live in Canada and sold some equity mutual funds in India last financial year.

Besides reporting my rental income, I also had to consider the capital gains from those investments. Initially, I assumed the bank's TDS would cover everything, but my tax consultant explained that I still needed to file an Indian tax return based on my overall income and transactions.

I also found it helpful to review my Annual Information Statement (AIS) before filing because it showed many of the financial transactions linked to my PAN.