Ask a Question
I'm an NRI living in Australia and have been working there for the last five years. While preparing my finances for this year, I realized I'm not entirely sure which income is taxable in India for NRIs.
I don't earn a salary in India, but I do have a few sources of income back home. I receive rent from an apartment in Hyderabad, earn interest from my NRO account, and recently sold some mutual funds that I had invested in before moving abroad. I also have an NRE account, and I've heard that the tax treatment for NRE and NRO accounts is different.
I've come across different answers online. Some people say only income earned in India is taxable, while others mention that certain foreign income may also need to be considered depending on your residential status. It's becoming a bit confusing.
Has anyone here been in a similar situation? Which types of income did you include while filing your Indian Income Tax Return as an NRI? Did you consult a tax professional, or were you able to figure it out yourself?
I know every person's financial situation is different, but I'd really appreciate hearing about your experiences and any practical tips that helped you stay compliant.
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.
I live in the UAE and have rental income from a house in Kochi along with interest from my NRO account. Every year, I include both of these while filing my Indian tax return because they're considered income earned in India.
My salary from the UAE wasn't included in my Indian return because it wasn't taxable in India based on my residential status for that year. I still reviewed everything with a chartered accountant because I wanted to make sure I wasn't missing anything.
The biggest lesson I learned was to keep records of all TDS deductions, especially on rental income and bank interest.
Share Your Thoughts and Connect with Others.
I'm an NRI currently working in Germany and have a question about foreign salary credited abroad. My employer pays my salary directly into my German bank account, and I pay...
I'm an NRI living in California and file tax returns in both India and the USA. This year is the first time I've had income in both countries, including rental...
I'm trying to understand how tax residency works because my situation seems to involve two countries. I'm an Indian citizen currently working in Singapore. I moved there for employment about...
I'm an NRI living in Canada and have been working there for the past four years. I haven't had any salary income in India since moving abroad, but I still...
I'm an NRI currently living in Texas, USA, and I'm trying to understand which types of income are actually tax-free in India for NRIs. I've been reading different articles online,...
I'm an Indian citizen currently living in the USA on an H1B visa and have been working here since 2022. During FY 2025–26, I spent around five months in India...
Foreign Bank Account reporting (FBAR) is an important report that should be submitted by the taxpayers of US citizens and NRIs, which helps them disclose their foreign financial accounts. FBAR...
A foreign tax credit allows residents to pay the tax on their foreign income in another country to lower their tax liability in India. The main purpose of the foreign...
A Form 15CA is a declaration that is used to collect the information which is related to the payments that are chargeable to tax with Non-residents. It is a useful...
Here are the deductions under the Income Tax for the NRIs. For the NRIs, most of the deductions fell under Section 80. A maximum deduction under section 80C is up...
Let Savetaxs guide you to the perfect solution for all your queries.
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.