Living in Dubai, Toronto or Singapore does not automatically end your relationship with the Indian taxman. It just changes the rules, and the rules start with counting days.
Residential status decides everything
Broadly, spend 182 days or more in India in a financial year (or meet certain combined day counts across years) and you are a resident, taxable in India on global income. Stay under the thresholds and you are a non resident, taxable in India only on income that arises in India. Count your days carefully around travel heavy years.
What India still taxes for an NRI
- ✓Rent from property in India
- ✓Capital gains on Indian shares, mutual funds and property
- ✓Interest on NRO accounts and Indian deposits (NRE and FCNR interest is exempt while you remain an NRI)
- ✓Any salary or fees for services rendered in India
When filing is worth it even if not mandatory
Filing is required when Indian income exceeds the basic exemption limit, but is often smart anyway: TDS on NRO interest is a hefty 30% and TDS on property sales is deducted on the full sale value, so refunds for NRIs are frequently large. Double taxation treaties can also lower rates, claimed through the return.
NRI returns involve Schedule FA style questions and treaty details, so Saathi.Tax pairs NRI filers with the expert plan: you answer the interview from anywhere in the world, a CA finishes the job, and your refund comes home to your Indian account.
