NRI tax jargon,
in plain English.

A treaty between India and another country to prevent the same income from being taxed twice. For NRIs, it means lower TDS rates on Indian income, if you claim it.

The tax your bank or AMC auto-deducts before paying you. For NRIs, default rates are 30% on interest and 20% on dividends. DTAA can reduce these.

A document from your country's tax authority proving you live there. India requires this to give you treaty rates. Without it, default (higher) rates apply.

A form you file on incometax.gov.in with your foreign tax details. Form 10F applies to FY 2025-26 and earlier (Section 90, Rule 21AB). Form 41 replaces it from FY 2026-27 under Section 159(8) and Rule 75 of the Income-tax Act 2025. Takes 5 minutes. Required alongside TRC for any DTAA claim.

Your TDS receipt book. Shows every rupee deducted from your income, who deducted it, when, how much. Upload it on TrustNRI for instant analysis.

Your annual tax filing with India. As an NRI, filing an ITR is the only way to claim refunds on excess TDS. No filing = no refund.

A bank account for managing income earned IN India (rent, dividends, FD interest). Interest is taxable at 30% (effective 31.2% with 4% Health & Education Cess; lower DTAA treaty rate available with TRC + Form 10F / Form 41). Repatriation limited to USD 1 million per financial year (Apr–Mar) under FEMA Master Direction on Remittance of Assets.

A bank account for money earned ABROAD and sent to India. Interest is completely tax-free in India. Fully repatriable.

Profit from listed equity / equity MFs held >12 months (Section 112A: 12.5% above ₹1.25L exemption). All other long-term assets — immovable property, unlisted shares, gold, debt MFs — require >24 months (Section 112: 12.5% without indexation post-23 July 2024). For most major DTAAs (US, UK, Canada, Australia), India retains taxing rights on capital gains under Article 13/14 — DTAA does NOT generally reduce Section 112/112A; Singapore pre-1-April-2017 share holdings are the rare grandfathered exception.

Profit from selling investments before the long-term holding period. Section 111A listed-equity STCG is 20% (raised from 15% by Finance (No. 2) Act 2024 effective 23 July 2024). Other STCG (debt MFs / specified MFs under Section 50AA, unlisted shares, immovable property held ≤24 months) is taxed at slab rate.

The company managing your mutual fund. HDFC AMC, SBI MF, ICICI Prudential, etc. They deduct TDS on your redemptions.

Allows you to file for past-year refunds even after the normal deadline. You can go back up to 5 Assessment Years from the end of the relevant AY (CBDT Circular 11/2024, effective 1 October 2024 — narrowed from the prior 6-year window under Circular 9/2015).

India pays you 6% annual simple interest on refunds that were delayed. Past-year recoveries include interest on top of the refund.

How the US IRS classifies Indian mutual funds. PFIC rules are punitive, up to 37% tax plus daily compounding interest. Only affects US NRIs.

US NRIs must report all foreign bank accounts exceeding $10,000 aggregate on FinCEN Form 114. Penalties for non-filing: up to $16,536 per violation (2025 inflation-adjusted; willful penalties far higher).

An online declaration you file before sending money from India abroad. Has 4 parts, picking the wrong one means the bank rejects it.

A certificate your CA issues after verifying tax compliance on the money being sent abroad. Banks require this for remittances over ₹5 lakh.

An application to the Income Tax Department for reduced TDS on property sales. Must be filed BEFORE the sale.

A transitional tax status for NRIs returning to India. Lasts 1-3 years. Foreign income is NOT taxable during RNOR.

A credit you claim in your country of residence for taxes already paid in India. Prevents double taxation.

Your 10-digit tax ID from India. Required for all tax filings, bank accounts, and investment transactions.

A 4% additional charge on top of your income tax in India. So '30% TDS' is actually 31.2% (30% + 4% cess).