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Australia

Your Indian income while you are on a temporary Australian visa

You are on a 482 or 485 visa and want to know whether Australia taxes your Indian shares, interest and rent, and what changes the day you get permanent residency.

You live in Australia on a temporary visa, a 482, a 485 or similar, and you still hold shares, mutual funds, deposits or property back in India. Everyone tells you Australia taxes residents on their worldwide income, so you assume your Indian income and gains are caught. For a temporary resident they usually are not, and that gap is a real planning window that is easy to overlook. The catch is that the window is fragile and ends in ways that are easy to miss, and one date that decides your future Australian tax on Indian assets is not the date you think it is.
Last reviewed: 6 August 20268 min readReviewed by Preetesh Maloo, CA

The short answer

While you are a temporary resident of Australia (you hold a temporary visa and neither you nor your spouse is a permanent resident or citizen), Australia does not tax most of your Indian income. Your Indian interest, dividends and rent are non-assessable (section 768-910) and your gains on Indian shares, funds and property are disregarded (section 768-915), so during this window India is the only country taxing your Indian income. India still taxes it as an NRI: NRE interest is exempt (Section 10(4)), NRO interest carries Section 195 TDS the treaty caps at 15% with a Tax Residency Certificate and Form 10F (Form 41 from FY 2026-27), and share and property gains fall under Section 112A and Section 112. Two traps decide the tax. First, the status ends the moment you get permanent residency, or even earlier if your spouse becomes an Australian citizen or permanent resident, and all your Indian income turns worldwide-assessable overnight. Second, the arrival-day cost-base reset that shelters your pre-migration Indian gains is dated to the day you cease to be a temporary resident (section 768-955), normally your PR grant, not the day you physically landed. We handle the India side: timing the Indian gains, the reset-date valuation, and the India-tax-paid certificate your Australian accountant needs afterwards.

References on this page

  • Australia: section 768-910, ITAA 1997. Foreign ordinary and statutory income (other than net capital gains) of a temporary resident is non-assessable non-exempt income
  • Australia: section 768-915, ITAA 1997. A temporary resident disregards capital gains and losses on assets that are not taxable Australian property
  • Australia: section 995-1 definition. A temporary resident holds a temporary visa and neither the person nor their spouse is an Australian resident within the Social Security Act 1991 (a citizen or permanent-visa holder)
  • Australia: section 768-955, ITAA 1997. On ceasing to be a temporary resident while staying an Australian resident, each non-taxable-Australian-property asset is taken to be acquired at its market value that day
  • India-Australia DTAA, Article 11: interest taxable in India capped at 15 percent
  • Section 10(4): NRE interest exempt in India. Section 195: TDS on payments to a non-resident. Section 112A and Section 112: capital-gains tax on the Indian sale
  • Form 10F with a Tax Residency Certificate for the treaty rate (Form 10F is replaced by Form 41 for income from FY 2026-27)

Do you pay Australian tax on your Indian income on a 482 or 485 visa?

Generally no, not while you are a temporary resident. Australia gives temporary residents almost the same treatment as non-residents on foreign income. Under section 768-910 your Indian interest, dividends and rent are non-assessable non-exempt income, so they never go on your Australian return. Under section 768-915 your gains on Indian shares, mutual funds and property are disregarded, because these are not taxable Australian property. So the worldwide-income rule you have heard about does not reach your Indian assets yet.

You count as a temporary resident when you hold a temporary visa such as a 482 or 485 and neither you nor your spouse is an Australian resident under the Social Security Act, meaning a citizen or permanent-visa holder. India still taxes your Indian income in its own right, because you remain an NRI there. The point is that during this window India is the only side taxing it, so there is no Australian top-up and no double tax to relieve.

Indian incomeAustralia (temporary resident)India (as NRI)
NRE interestNot taxedExempt, Section 10(4)
NRO interestNot taxedTDS, treaty caps at 15%
Share / fund / property gainsDisregardedSection 112A / Section 112

The planning window most people waste

This is the one period when a sale of your Indian shares or property is taxed once, in India, and not again in Australia. Sell while you are a temporary resident and Australia disregards the gain entirely, so you pay only the Indian capital-gains tax and keep the full benefit of it. Sell after you become a permanent resident and Australia taxes the gain too, credits the Indian tax through a capped foreign income tax offset, and often cannot absorb all of it, so some Indian tax is lost.

So the timing of when you realise Indian gains genuinely matters. If you are planning to sell an Indian holding within a few years of getting PR, doing it while the temporary-resident shield still holds can be the difference between one tax bill and one and a bit. The India side needs to be right either way: a clean Section 112A or Section 112 computation, and where the TDS on a property sale is heavy, a lower-deduction certificate so the buyer withholds closer to the real tax rather than the gross.

The reset date is your PR day, not the day you landed

The cost-base reset that shelters your pre-migration Indian gains does not happen on the day you arrived. For someone who came on a temporary visa it happens later, on the day you stop being a temporary resident. Australia gives every migrant this reset, the same one our arrival-day valuation page covers, but the date it uses is not the one most people assume.

Under section 768-955, when you cease to be a temporary resident but stay an Australian resident, each of your Indian assets is treated as acquired at its market value on that day, normally the day your permanent residency is granted. That later date, often years after you landed, is the one your future Australian gain is measured from. Fixing your Indian assets at their arrival-day value instead is a common and expensive mistake: it uses the wrong, usually lower, figure and can overstate your Australian gain for years. The number that matters is a credible India-side market value of each asset as on the day you cease to be a temporary resident.

The spouse who silently ends it

The shield is easy to lose without noticing. Because a temporary resident is defined partly by your spouse's status, you stop being one the moment your spouse or de facto partner becomes an Australian citizen or permanent resident, even though your own visa is still temporary. From that point your Indian interest, dividends, rent and share gains all become assessable in Australia, and your NRE interest, tax-free in India, is suddenly fully taxed there with no offset because India took nothing.

Getting permanent residency yourself does the same thing, on the grant date. And the switch is one-way: once you have been a full Australian resident for tax, you can never be a temporary resident again, even if you later drop back to a temporary visa. NRIs on a 482 whose partner's PR comes through first routinely miss that their Indian income just became worldwide-taxable. Knowing the exact date it flips is what lets you plan around it rather than find out at tax time.

A worked example: shares held through the window

Rohan arrived in Melbourne in 2023 on a 482 visa, so he is a temporary resident. He holds two parcels of Indian listed shares.

Parcel A he bought in 2016 for 8 lakh. In 2026, still on his 482, it is worth 24 lakh and he sells it. India taxes the roughly 16 lakh long-term gain under Section 112A at 12.5% above the yearly 1.25 lakh exemption, about 1.8 lakh of tax plus cess. Australia disregards the gain completely under section 768-915. He pays Indian tax only, with no Australian layer and nothing lost to an offset cap.

Parcel B he bought in 2015 for 6 lakh and keeps. In 2027 his permanent residency is granted, so he ceases to be a temporary resident. Under section 768-955, Parcel B's Australian cost base resets to its market value that day, say 30 lakh, not his 2015 cost and not its 2023 arrival value of about 20 lakh. In 2029 he sells it for 34 lakh. Australia measures its gain from the 2027 reset value, so 4 lakh, and his Australian accountant works the Australian tax on that figure. India taxes the whole gain from his 2015 cost, 28 lakh, under Section 112A. He claims a foreign income tax offset for the Indian tax, and we supply the India-tax-paid certificate behind it. Had he wrongly used his 2023 arrival value, Australia would have measured a 14 lakh gain instead of 4 lakh, and he would have overpaid for years.

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What's involved

What the CA actually does

  1. 1

    We time the Indian gains you realise in the window

    We compute the Indian capital-gains tax under Section 112A or Section 112 so a sale made while you are still a temporary resident is taxed once in India, with no Australian layer, and we get a lower-deduction certificate where the TDS on a property sale would otherwise over-withhold.

  2. 2

    We fix the correct reset date and value

    We value each Indian asset as on the day you cease to be a temporary resident, normally your PR grant date, which is the date Australia's cost-base reset actually uses, and document it so your Australian accountant records the right figure rather than a wrong arrival-day one.

  3. 3

    We cap the NRO TDS at the treaty rate

    We lodge your Tax Residency Certificate and Form 10F, replaced by Form 41 for income from FY 2026-27, so the bank deducts 15% on NRO interest under the treaty, not 30%, and we reclaim any excess already withheld by filing your Indian return.

  4. 4

    We flag the day the shield ends

    We tell you the exact date your temporary-resident status flips, whether from your own PR grant or a spouse becoming an Australian citizen or permanent resident, so your Indian income does not quietly become worldwide-assessable without you planning for it.

  5. 5

    We supply the India-tax-paid certificate for your FITO

    Once you are worldwide-assessable, we certify the Indian tax paid on your Indian income and gains, tied to your Form 26AS and filed return, so your Australian accountant has verifiable evidence to claim the foreign income tax offset.

What to have ready

Documents you'll typically need

  • Your visa subclass and grant date, and your PR grant date if you have one
  • Whether your spouse or de facto partner is an Australian citizen or permanent resident
  • Your Indian shares, mutual funds and property, with the India purchase cost and dates
  • NRE and NRO balances and any TDS the bank deducted
  • Your PAN and Australian tax details

Frequently asked questions

Common questions

On a temporary Australian visa with Indian shares or property?

Tell us your visa, your PR timing and what you hold in India. A practising CA will size the Indian tax and fix the reset date on a free call, no obligation.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.