NRI
Non-Resident Indian (NRI) is an Indian citizen who resides outside India for tax purposes under Section 6 of the Income Tax Act — typically someone who stays in India for less than 182 days in a financial year (with some 60/365-day variants). What ch
Non-Resident Indian (NRI) is an Indian citizen who resides outside India for tax purposes under Section 6 of the Income Tax Act — typically someone who stays in India for less than 182 days in a financial year (with some 60/365-day variants).
What changes for an NRI investor: Investments must flow through an NRE (repatriable) or NRO (non-repatriable) bank account. Equity investing requires a PIS-linked demat. Mutual funds accept NRI subscriptions but most US/Canada-resident NRIs are blocked by FATCA-driven AMC policies. TDS applies on capital gains at source (12.5% on equity LTCG over Rs 1.25 L; 20% on equity STCG; 30% on debt MF STCG).
Example: An NRI in Dubai redeems an equity MF for Rs 5,00,000 gain after 18 months held. AMC deducts TDS at 12.5% (Rs 46,875 after exemption) before crediting the NRE account. Final tax is settled in the year-end ITR.
When relevant: Determining your residential status each financial year — it can flip on a day-count basis and changes your tax treatment.
When NOT to assume: Citizenship and tax residency are independent — OCI cardholders may still be "Resident" Indian for tax if days exceed 182.
Caveat: NRI taxation interacts with the country of residence via DTAA. Always consult a cross-border tax specialist.