TDS and Tax Liability in India

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TDS and Tax Liability in India for NRIs

By Classic Partner – Chartered Accountants for NRI Taxation

Understanding your tax obligations in India can be challenging—especially as a Non-Resident Indian (NRI), RNOR (Resident but Not Ordinarily Resident), or Deemed Resident. At Classic Partner, our team of Chartered Accountants specializes in NRI taxation, helping you stay compliant with the Income-tax Act, 1961 while also leveraging benefits under Double Tax Avoidance Agreements (DTAAs).

How Residential Status Affects Tax Liability

Your residential status determines the scope of income taxable in India. It can fall under one of the three categories:

Resident and Ordinarily Resident (ROR)
Resident but Not Ordinarily Resident (RNOR)
Non-Resident (NR)

Note: A Deemed Resident is always treated as RNOR under Indian tax rules.

Taxability of Income Based on Residential Status

Type of Income	ROR	RNOR	NR
Income from Indian sources (interest, rent, dividends, capital gains)	✅ Taxable	✅ Taxable	✅ Taxable
Income earned or received in India	✅ Taxable	✅ Taxable	✅ Taxable
Foreign income from business/profession controlled from India	✅ Taxable	✅ Taxable	❌ Not Taxable
Other foreign income (earned/received abroad)	✅ Taxable	❌ Not Taxable	❌ Not Taxable

Double Taxation Relief (DTAA)

If the same income is taxed in both India and your country of residence, you can claim relief through DTAA provisions. At Classic Partner, we ensure:

Proper application of treaty benefits
Correct filing of tax residency certificates (TRCs)
Maximum tax credit without compliance risks

TDS Applicability for NRIs

As per Indian tax law, Tax Deducted at Source (TDS) applies to various incomes of NRIs, such as:

Interest earned on NRO accounts
Sale of immovable property in India
Rental income from Indian tenants
Capital gains from shares, mutual funds, or other investments
Professional or consultancy fees

We assist in accurate TDS computation, timely remittance, and filing of Form 15CA/15CB to ensure smooth compliance.

Why Choose Classic Partner?

We provide end-to-end NRI tax compliance and advisory, including:

Expert TDS compliance & certificate management
Comprehensive NRI tax planning for income and investments
Guidance on DTAA benefits and exemptions
Income Tax Return (ITR) filing for NRIs
Assistance with capital gains tax and repatriation planning

Need Help With NRI TDS or Tax Liability?
At Classic Partner, we simplify taxation for NRIs—ensuring accurate TDS deductions, timely filings, and maximum tax relief.