How is an NRI taxed in India?
An NRI is taxed in India only on income earned or received in India — salary for services in India, rent from Indian property, capital gains on Indian assets, and interest from NRO accounts. Foreign income is not taxed in India. NRIs must file an ITR if their Indian income exceeds the basic exemption, and can claim DTAA relief to avoid double taxation.
1What's taxable
Income that accrues or is received in India: Indian salary, house-property rent, capital gains on Indian shares/property, and NRO interest. NRE/FCNR interest is exempt. Foreign income is outside the Indian net.
2Filing and relief
File ITR-2 (or ITR-3 for business) if Indian income crosses the exemption limit or to claim a refund of TDS. Use the DTAA between India and your country of residence, with Form 10F and a Tax Residency Certificate, to avoid double taxation.
Frequently asked questions
Do NRIs have to pay tax on foreign income in India?
No — NRIs are taxed in India only on income earned or received in India. Income earned abroad is not taxable in India, though it may be taxable in the country where you are resident.
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General information for AY 2026-27, not professional advice. Laws change with each Finance Act, notification or amendment and depend on your specific facts — verify the current position with a licensed CA or advocate before acting.