For NRIs in India explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
NRIs are taxed in India only on Indian-source income, with special rules for TDS and investments. Here are the key rules.
What is taxable
- Salary earned/received in India
- Rent from Indian property
- Capital gains on Indian assets
- Interest from Indian accounts (NRO)
Key points
- NRE and FCNR interest is tax-free; NRO interest is taxable
- TDS is often deducted at higher rates for NRIs
- DTAA relief and lower-TDS certificates can reduce tax
Filing
File ITR-2 to report Indian income and claim refunds or treaty benefits.
Frequently Asked Questions
What income is taxable for NRIs in India?
Indian-source income — salary, rent, capital gains and NRO interest.
Is NRE interest taxable?
No — NRE and FCNR interest is tax-free; NRO interest is taxable.
Do NRIs face higher TDS?
Often yes — but DTAA and lower-TDS certificates can reduce it.
Which ITR do NRIs use?
Usually ITR-2.
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