When you move back to India during a financial year, your tax status depends on how long you stay in the country. Today's Ask Wallet Wise query helps returning NRIs plan their move and taxes more efficiently.
Moneycontrol's Ask Wallet Wise initiative offers expert advice on matters of personal finance and money. You can email your queries to askwalletwise@nw18.com, and we will try and get a top financial expert to address your queries.
I am an NRI and would like to know whether my income from abroad for the period April 2025 to November 2025 will be taxed if I choose to permanently move to India in December 2025?
Expert's Advice: Taxability of income in India depends on two factors. The source of income and the residential status of the taxpayer. Any income that accrues, arises, or is received in India is taxable here for everyone, irrespective of their residential status, subject to exemptions under Double Tax Avoidance Agreements (DTAAs) between India and other countries.
For a person who is resident in India, global income is taxable in India. For a non-resident, only income that accrues, arises, or is received in India is taxable. Residential status generally depends on the number of days a person stays in India during a financial year.
Since your aggregate physical stay in India during FY 2025–26 will be less than 182 days, you will be treated as a non-resident for tax purposes. Therefore, only your Indian income will be taxable in India, and your foreign income earned before moving (April to November 2025) will not be taxed here.
While filing your ITR, ensure you select your status as non-resident due to your limited stay in India. It is advisable to seek assistance from a qualified professional to avoid any errors in your tax return.
Disclaimer: The views expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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