NRI taxation refers to the income tax rules that apply to non-resident Indians on income earned or received in India. In general, NRIs are taxed only on India-sourced income — such as rent from Indian property, interest on NRO deposits, dividends and capital gains from Indian assets — while foreign income stays outside the Indian tax net, subject to your residency status. TDS provisions are stricter for NRIs, and relief under a DTAA can reduce double taxation.

Yes, but only on income that accrues or is received in India. Rent from Indian property, NRO interest, dividends and capital gains on Indian assets are taxable for NRIs, while foreign salary and overseas investments are generally not taxable if you remain a non-resident. Double taxation can often be reduced through the DTAA between India and your country of residence.

NRIs are taxed at the same slab rates as resident individuals for most types of income, such as rent or interest. However, certain incomes like capital gains are taxed at special flat rates instead of slab rates, and NRIs cannot claim the Section 87A rebate that is available only to residents. So the slab structure is the same, but some incomes are treated differently.

Your tax residency status is decided by your physical presence in India. Staying in India for fewer than 182 days in a financial year generally makes you a non-resident, with additional conditions for Indian citizens and OCI/PIO holders who have higher Indian income. People returning to India after a long stay may qualify as "resident but not ordinarily resident" (RNOR) for a transitional period. Your status determines which of your incomes are taxable in India.

First confirm your residential status for the financial year, then report all India-sourced income such as rent, NRO interest, dividends and capital gains. NRIs typically file ITR-2, since ITR-1 is only for residents, and you should reconcile all TDS deducted in India using Form 26AS and AIS before filing. Filing a return also allows you to claim a refund if excess TDS was deducted, along with any DTAA relief you are eligible for.

NRIs can invest in Indian mutual funds, and the taxation depends on the fund type and holding period. Gains from equity-oriented funds are short-term before 12 months and long-term after that, with long-term gains taxed at a flat 12.5% beyond the annual exemption, while debt fund gains are added to income and taxed at slab rates. TDS applies on redemptions for NRIs, so it is important to track it and claim credit while filing your return.

When an NRI sells Indian assets such as property or shares, the gains are taxed in India and TDS is deducted by the buyer or fund house before payment. Long-term gains are generally taxed at 12.5% without indexation, short-term gains on listed equity at 20%, and other short-term gains at slab rates. NRI taxation on capital gains also allows DTAA relief in many cases, and a lower TDS certificate can be obtained if your actual tax liability is lower than the TDS deducted.

Capital gains tax is the tax payable on the profit you make from selling a capital asset such as property, shares, mutual funds or gold. If the asset is held for a short period, the profit is a short-term capital gain; held longer, it becomes long-term and usually attracts a lower flat rate. The holding period and asset type decide the applicable rate.

For most assets, long-term capital gains are currently taxed at 12.5% without indexation, with listed shares and equity mutual funds exempt up to ₹1.25 lakh of gains per year. Short-term gains on listed equity and equity mutual funds are taxed at 20%, while short-term gains on other assets are added to your income and taxed at slab rates. Rates vary by asset type and date of transfer, so the rules applicable to your specific transaction should be checked.

When you sell a house or plot, the profit is a capital gain. If you held the property for more than 24 months, it is a long-term gain, generally taxed at 12.5% without indexation, with an option of 20% with indexation in certain cases for property bought before 23 July 2024; property held for a shorter period is taxed at your slab rate. The buyer must also deduct 1% TDS when buying from a resident seller, and higher TDS applies when the seller is an NRI.

Capital gains are calculated as the sale price minus the cost of acquiring and improving the asset, minus transfer expenses such as brokerage, with indexation applied where allowed. Whether the gain is short-term or long-term depends on the holding period — 12 months for listed shares and equity mutual funds, 24 months for property. The rate applicable to that category is then applied to the gain.

The common legal routes are reinvesting the gain in another residential property under Section 54, investing in specified bonds such as NHAI or REC bonds up to ₹50 lakh under Section 54EC, or parking the gains in the Capital Gains Account Scheme before your return filing deadline if you have not yet found a new property. For inherited property, the original owner's cost and any applicable indexation can reduce the taxable gain. The right option depends on your plans for the sale proceeds.

It depends on the type of fund. Gains on equity mutual funds are long-term after 12 months and taxed at 12.5% beyond the ₹1.25 lakh annual exemption, while short-term equity gains are taxed at 20%. Debt fund gains are added to your income and taxed at your applicable slab rate.

Income tax planning is the process of arranging your income, investments and deductions through the year so that you legally pay the minimum tax possible. It includes choosing between the old and new tax regimes, using deductions such as 80C and 80D, timing income and capital gains, and structuring investments tax-efficiently. Done early in the year, it prevents last-minute investments made only to save tax.

Key strategies include comparing both tax regimes before choosing one, fully using employer benefits like HRA and PF, claiming deductions under 80C and 80D, adding NPS for an extra ₹50,000 deduction under 80CCD(1B), and submitting investment proofs to your employer on time so TDS is adjusted correctly. Planning the timing of bonuses and capital gains can also help keep you in a lower tax bracket.