NRI tax jargon,
in plain English.

A treaty between India and another country to prevent the same income from being taxed twice. For NRIs, it means lower TDS rates on Indian income — if you claim it.

The tax your bank or AMC auto-deducts before paying you. For NRIs, default rates are 30% on interest and 20% on dividends. DTAA can reduce these.

A document from your country's tax authority proving you live there. India requires this to give you treaty rates. Without it, default (higher) rates apply.

A form you file on incometax.gov.in with your foreign tax details. Takes 5 minutes. Required alongside TRC for any DTAA claim.

Your TDS receipt book. Shows every rupee deducted from your income — who deducted it, when, how much. Upload it on TrustNRI for instant analysis.

Your annual tax filing with India. As an NRI, filing an ITR is the only way to claim refunds on excess TDS. No filing = no refund.

A bank account for managing income earned IN India (rent, dividends, FD interest). Interest is taxable at 30% (or DTAA rate). Repatriation limited to $1M/year.

A bank account for money earned ABROAD and sent to India. Interest is completely tax-free in India. Fully repatriable.

Profit from selling investments held over 1 year (equity) or 2 years (property). Taxed at 12.5% for NRIs. DTAA can reduce this for some countries.

Profit from selling equity investments held less than 1 year. Taxed at 20% for NRIs.

The company managing your mutual fund — HDFC AMC, SBI MF, ICICI Prudential, etc. They deduct TDS on your redemptions.

Allows you to file for past-year refunds even after the normal deadline. You can go back up to 6 financial years.

India pays you 6% annual simple interest on refunds that were delayed. Past-year recoveries include interest on top of the refund.

How the US IRS classifies Indian mutual funds. PFIC rules are punitive — up to 37% tax plus daily compounding interest. Only affects US NRIs.

US NRIs must report all foreign bank accounts exceeding $10,000 aggregate on FinCEN Form 114. Penalties for non-filing: up to $12,906 per violation.

An online declaration you file before sending money from India abroad. Has 4 parts — picking the wrong one means the bank rejects it.

A certificate your CA issues after verifying tax compliance on the money being sent abroad. Banks require this for remittances over Rs 5 lakh.

An application to the Income Tax Department for reduced TDS on property sales. Must be filed BEFORE the sale.

A transitional tax status for NRIs returning to India. Lasts 1-3 years. Foreign income is NOT taxable during RNOR.

A credit you claim in your country of residence for taxes already paid in India. Prevents double taxation.

Your 10-digit tax ID from India. Required for all tax filings, bank accounts, and investment transactions.

A 4% additional charge on top of your income tax in India. So '30% TDS' is actually 31.2% (30% + 4% cess).