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NRI Taxation and Planning


Tax Filing Guide for NRI Salaried Employees

Being an NRI salaried employee comes with global opportunities — but it also brings the responsibility of handling taxes carefully in India. Here's a simple guide for NRIs to manage their tax filing smoothly.

1. Determine Your Residential Status

Before filing, confirm your status:

  • NRI if you stay outside India for 183 days or more in a financial year.
  • Resident otherwise.

Residential status decides whether your global income is taxable in India or only your Indian income.

2. Understand What Income is Taxable

As an NRI, you are taxed only on:

  • Income received in India (like rent, interest, dividends)
  • Income earned from a business or profession in India
  • Capital gains from property or securities in India

Salary earned abroad for services outside India is not taxed in India.

3. Know Which ITR Form to Use

  • Use ITR-2 if you have income from salary (in India), property, or capital gains but no business income.
  • Use ITR-3 if you have income from business or profession.

4. Claim Benefits Available to NRIs

  • Double Tax Avoidance Agreement (DTAA) relief to avoid being taxed twice.
  • NRE account interest is tax-free.
  • 80C deductions for eligible investments.

5. File Before the Due Date

  • Filing deadline for FY 2024-25 (AY 2025-26) is 31st July 2025 (for non-audited cases).
  • Filing late may attract penalties and loss of carry-forward benefits.

Summary:

NRIs must plan their taxes carefully to avoid double taxation and penalties. Keeping proper documents, understanding Indian tax rules, and consulting a professional when needed ensures smooth compliance.

Need expert help with your NRI tax filing? Contact Us today!


Income Tax