💰 Tax Savings · Special-status benefits
What income of an NRI is taxable in India — scope & residence (Sections 5 & 6)
✍️ EaseValue Advisors · Updated 17 Jul 2026 · FY 2025-26
In short
The core relief for an NRI: you are taxed in India only on income that is received or that accrues/arises in India — Section 5 (old 5) read with Section 6 (old 6). Your foreign income is outside the Indian tax net.
The rule
- Resident: taxed on global income.
- Non-resident: taxed only on income received in India or that accrues/arises in India (Section 5). Salary earned and received abroad, foreign interest, foreign rent — not taxed in India.
What is Indian-source (taxable) for an NRI
- Salary for services rendered in India.
- Rent from Indian property.
- Capital gains on Indian assets (shares, property).
- Interest from Indian accounts — except tax-free NRE/FCNR interest.
Residence — Section 6
You're a non-resident if you're in India < 182 days in the year (with a 60-day secondary test that's relaxed to 182 for Indians leaving for work or visiting). Manage your day-count and you keep NRI status — and keep foreign income out of India. Returning residents get a cushion via RNOR status.
Who it helps
Every NRI — knowing the scope stops you over-declaring foreign income and helps time your India visits.
The law behind it
Section 5 (old 5) Section 6 (old 6)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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