Last Updated: June 2026 — FY 2025-26 (AY 2026-27)
Non-Resident Indians (NRIs) have specific income tax obligations in India. Income earned or received in India is taxable, while foreign income is generally exempt.
Who is an NRI for Tax Purposes?
You are an NRI for FY 2025-26 if you stayed in India for less than 182 days during the year. The RNOR (Resident but Not Ordinarily Resident) status has intermediate rules based on cumulative days over 10 years.
What Income is Taxable for NRIs?
- Salary received in India or for services in India
- Rental income from property in India
- Capital gains on assets in India (shares, property)
- Interest on NRO accounts, fixed deposits in India
- Business income from India operations
TDS Rates for NRIs (FY 2025-26)
| Income Type | TDS Rate |
|---|---|
| Short-Term Capital Gains (equity) – Sec 111A | 20% |
| Long-Term Capital Gains (equity) – Sec 112A | 12.5% |
| Long-Term Capital Gains (property) – Sec 112 | 12.5% (without indexation) |
| Interest on NRO Account | 30% |
| Rental Income | 30% |
| Other Income | 30% |
NRI – ITR Filing Requirements
- NRIs must file ITR if their India-sourced income exceeds the basic exemption limit
- No basic exemption benefit on special rate incomes (capital gains, etc.)
- NRIs can claim DTAA benefits to avoid double taxation
- Applicable ITR forms: ITR-2 (no business income) or ITR-3 (business income)
- Filing deadline: 31 July 2026
NRE vs NRO Accounts – Tax Treatment
| Account Type | Interest Taxability |
|---|---|
| NRE Account | Fully Exempt from Indian tax |
| FCNR Account | Fully Exempt from Indian tax |
| NRO Account | Taxable at 30% (TDS deducted) |