Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Only Indian-source income
An NRI is taxed on income that is received in India, or that accrues or arises in India, or is deemed to accrue here under Section 9. Your overseas salary, foreign rent and foreign investment income fall outside the Indian net entirely.
What counts as Indian income
- Salary for work done in India;
- Rent from property located in India;
- Capital gains on Indian shares, mutual funds or property;
- Interest from an NRO account or Indian deposits (NRE interest is exempt).
A worked example
Example: an NRI in London earns a UK salary, rents out a flat in Pune, and holds Indian mutual funds. India taxes only the Pune rent and the mutual fund gains — the UK salary is ignored here. If total Indian income crosses the exemption limit, you must file an ITR. Two points NRIs often miss: the Section 87A rebate is not available to an NRI under either regime, and there is no higher senior-citizen exemption — so the slab you pay can be higher than a resident on the same Indian income. Even below the limit, filing is usually worth it to reclaim any excess TDS. Confirm current limits per the Finance Act. Our NRI tax service can file it.