Pending professional review. This guide is awaiting review by our Chartered Accountants.
Living abroad does not end your financial ties with India. Rental income, bank interest, investments and property sales can all have Indian tax and foreign-exchange consequences. These are the areas non-residents most often ask us about.
1. Your residential status
Your tax position starts with your residential status for the year, which is determined by the number of days you stay in India and other conditions in the law. It decides which of your income is taxable in India, so confirm it every year rather than assuming it.
2. PAN and the annual return
- A PAN is needed for most financial transactions in India.
- If you have taxable income in India, or tax has been deducted that you want refunded, you may need to file an income-tax return.
3. Tax deducted on payments to you
Payments to non-residents — rent, interest, or the price when you sell property — are often subject to tax deduction at source by the payer. Where the deduction exceeds your actual tax liability, a return is the route to a refund; in some cases a lower-deduction certificate can be applied for in advance.
4. Property
Buying, selling and letting property in India involves both tax and FEMA rules — including what an NRI may acquire and how sale proceeds can be taken abroad. Some matters require an application to the RBI.
5. Repatriation
Moving money out of India usually requires documentation, including a Chartered Accountant's certificate in prescribed cases. Plan this before the transaction, not after.
6. Double taxation
If the same income is taxed in India and in your country of residence, the Double Taxation Avoidance Agreement (DTAA) between the two countries may provide relief. The documents needed vary by treaty.
Every case depends on your facts. See our NRI services or contact us — we work with clients abroad by email, phone and WhatsApp.