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Taxes

Income tax for NRIs: e-filing, DTAA, TDS and refunds, forms 15CA and 15CB, and capital gains.

Tax for NRIs, in short

  • What India taxes: only income earned or received in India: rent, interest on NRO deposits, capital gains on Indian assets, and salary for work done in India. Income earned abroad is not taxed in India.
  • Tax deducted at source: banks, tenants and buyers of your property deduct tax before paying you, often at higher rates than a resident pays. File a return to claim back any excess.
  • Lower deduction: apply to the Income Tax Department for a certificate if the tax deducted would be more than your real liability.
  • DTAA relief: to use a Double Taxation Avoidance Agreement, get a Tax Residency Certificate from the country you live in and file Form 10F.
  • Sending money abroad from an NRO account: the bank asks for Form 15CA, and for larger sums Form 15CB from a chartered accountant.

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