{"id":17854,"date":"2026-03-30T17:00:14","date_gmt":"2026-03-30T11:30:14","guid":{"rendered":"https:\/\/fastlegal.co.in\/blog\/uncategorized\/income-tax-rules-for-nris-under-new-regime-in-india-step-by-step\/"},"modified":"2026-03-30T17:00:14","modified_gmt":"2026-03-30T11:30:14","slug":"income-tax-rules-for-nris-under-new-regime-in-india-step-by-step","status":"publish","type":"post","link":"https:\/\/fastlegal.co.in\/blog\/business\/income-tax-rules-for-nris-under-new-regime-in-india-step-by-step\/","title":{"rendered":"Income tax rules for NRIs under new regime in India: step by step"},"content":{"rendered":"<p>Income tax rules for NRIs under new regime in India can feel complicated when you have income and assets both in India and abroad. This guide walks through the key income tax rules for NRIs under new regime in India, common income types, and step by step compliance actions.<\/p>\n<h2>Who is an NRI under the new income tax law<\/h2>\n<p>Income tax rules for NRIs under new regime in India start with residential status. An NRI is generally someone who is a non resident in India for the relevant financial year based on day count tests and other conditions under the new law.<\/p>\n<p>Key points:<\/p>\n<ul>\n<li>NRI is a tax concept, not just a FEMA or passport concept<\/li>\n<li>Residential status must be checked every year separately<\/li>\n<li>A person can be resident under income tax but non resident under exchange control, and vice versa<\/li>\n<\/ul>\n<p>Understanding residential status is essential before applying any specific income tax rules for NRIs under new regime in India.<\/p>\n<h2>What income of NRIs is taxable in India<\/h2>\n<p>Under income tax rules for NRIs under new regime in India, tax is generally levied on:<\/p>\n<ul>\n<li>Income received or deemed to be received in India<\/li>\n<li>Income that accrues or arises, or is deemed to accrue or arise, in India<\/li>\n<\/ul>\n<p>Common NRI income sources that may be taxable in India include:<\/p>\n<ul>\n<li>Interest on NRE, NRO and FCNR deposits, subject to conditions<\/li>\n<li>Rent from property situated in India<\/li>\n<li>Capital gains on sale of Indian shares, securities or immovable property<\/li>\n<li>Dividends from Indian companies<\/li>\n<\/ul>\n<p>The exact tax rate and relief available depend on the nature of income, specific provisions in the new law and applicable tax treaties.<\/p>\n<h2>TDS obligations for payers dealing with NRIs<\/h2>\n<p>Income tax rules for NRIs under new regime in India impose higher responsibilities on payers located in India. Examples:<\/p>\n<ul>\n<li>Buyers of property from an NRI may need to deduct TDS at higher rates on the sale consideration<\/li>\n<li>Banks may deduct TDS on interest paid to NRIs at special rates<\/li>\n<li>Companies paying dividends, royalties or fees for technical services to NRIs must apply treaty rates where applicable<\/li>\n<\/ul>\n<p>Practical steps for payers:<\/p>\n<p>1. Obtain correct PAN and residential details of the NRI payee<\/p>\n<p>2. Check relevant sections of the law and applicable DTAA article<\/p>\n<p>3. Collect tax residency certificate and other documents if treaty benefit is claimed<\/p>\n<p>4. Deduct, deposit and report TDS in time<\/p>\n<p>Failure to follow TDS rules can shift the tax burden and penalties to the payer in India.<\/p>\n<h2>Return filing and refunds for NRIs<\/h2>\n<p>Income tax rules for NRIs under new regime in India require return filing if taxable income exceeds the basic exemption limit or certain conditions are met, even when TDS has already been deducted.<\/p>\n<p>NRIs should:<\/p>\n<ul>\n<li>Register and access their account on the income tax e filing portal<\/li>\n<li>Use the correct ITR form based on income type<\/li>\n<li>Report Indian income, TDS and claim treaty relief where applicable<\/li>\n<li>Disclose foreign assets and income if they become resident in a later year and the law requires such disclosure<\/li>\n<\/ul>\n<p>Proper return filing helps NRIs claim refunds where TDS has been deducted at higher rates than the final tax liability.<\/p>\n<h2>Double taxation relief and treaty benefits<\/h2>\n<p>Many countries have double tax avoidance agreements with India. Under income tax rules for NRIs under new regime in India, treaty provisions can override domestic law where they are more beneficial to the taxpayer.<\/p>\n<p>Important aspects:<\/p>\n<ul>\n<li>Determine residency under both Indian law and foreign law<\/li>\n<li>Apply tie breaker rules in the treaty if dual residency arises<\/li>\n<li>Identify the relevant article for interest, dividends, capital gains, royalties or other income<\/li>\n<li>Ensure that tax residency certificate and additional documents required by Indian authorities are obtained<\/li>\n<\/ul>\n<p>NRIs should integrate treaty planning with domestic income tax rules for NRIs under new regime in India to avoid double taxation.<\/p>\n<h2>Practical checklist for NRIs with Indian income<\/h2>\n<p>A quick checklist based on income tax rules for NRIs under new regime in India:<\/p>\n<p>1. Confirm residential status for the year<\/p>\n<p>2. List all Indian income sources and relevant documents<\/p>\n<p>3. Check TDS deducted and reconcile with Form 26AS and AIS on the portal<\/p>\n<p>4. Evaluate treaty relief options and documentation<\/p>\n<p>5. File the return before the due date and track refunds or demands<\/p>\n<p>Related: Tax implications for NRIs selling property in India (link: \/blog\/nri-selling-property-tax-implications)<\/p>\n<p>Related: Repatriation of funds from India for NRIs under income tax and FEMA rules (link: \/blog\/repatriation-funds-nri-india)<\/p>\n<p>Related: Step by step guide to filing ITR for NRIs in India (link: \/blog\/itr-filing-guide-nris-india)<\/p>\n<p>For official rules, procedures and utilities, refer to the Income Tax Department portal at https:\/\/www.incometax.gov.in\/ and CBDT notifications relevant to NRI taxation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Income tax rules for NRIs under new regime in India can feel complicated when you have income and assets both in India and abroad. This guide walks through the key income tax rules for NRIs under new regime in India,&hellip; <a href=\"https:\/\/fastlegal.co.in\/blog\/business\/income-tax-rules-for-nris-under-new-regime-in-india-step-by-step\/\" class=\"more-link\">Continue Reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7146],"tags":[],"class_list":["post-17854","post","type-post","status-publish","format-standard","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts\/17854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/comments?post=17854"}],"version-history":[{"count":0,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/posts\/17854\/revisions"}],"wp:attachment":[{"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/media?parent=17854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/categories?post=17854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fastlegal.co.in\/blog\/wp-json\/wp\/v2\/tags?post=17854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}