If you are non-resident in India, you are taxed in India only on income arising in India, such as rent, NRO interest and capital gains on Indian assets. You file an Indian return where your income exceeds the exemption limit or you want a refund of excess tax deducted. The India-US tax treaty decides who taxes what, and the Indian tax you pay is generally claimed as a foreign tax credit on your US return.
- Document route
- US notary, then apostille from the state Secretary of State
- Time difference
- IST is 9h30 (US Eastern, summer) to 13h30 (US Pacific, winter) ahead
- Law
- Income-tax Act 2025, from 1 April 2026
- Main test
- 182 days in the tax year
NRI Income Tax & DTAA from the USA: how it works
We first confirm your residential status for the Indian financial year from April to March, counting days in India; the Income-tax Act 2025, in force from 1 April 2026, keeps the familiar 182-day and 120-day tests. We then collect Form 26AS and AIS data, rental agreements and capital gains workings. If tax was deducted at the higher non-resident rate on a property sale, the Indian return is how you recover the excess. Treaty benefits may require a tax residency certificate from the IRS on Form 6166 and Form 10F filed in India.
The US calendar year and the Indian April to March year do not line up, so the same income may fall in different tax years in each country. We prepare an annual summary that your US accountant can use to claim credit correctly. Indian mutual funds held by US persons raise PFIC issues in the US, and NRE interest, though tax-free in India, is taxable in the US. These are not Indian-law questions, but we flag them so nothing is missed between the two filings.
What clients in the USA should know
- The India-US treaty generally lets India tax rent and gains on Indian immovable property first, with the US giving credit.
- Form 6166 from the IRS is the usual US tax residency certificate when you need treaty rates in India.
- NRE interest is exempt in India but not in the US, which surprises many US-based clients.
Step by step from the USA
Video consultation
A call at a time that suits the USA, after we have read your documents.
Documents signed in the USA
US notary, then apostille from the state Secretary of State
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in the USA where needed.
The full guide
This page covers what changes when you are in the USA. For the law, the documents and the step-by-step procedure, read our main page on NRI Income Tax & DTAA, or see all services for clients in the USA and the Cross-Border Tax & Money practice area.
Questions from clients in the USA
Do I need an Indian return if TDS has been deducted?
Not always, but filing is how you claim a refund of excess TDS and carry forward losses. It is also expected if total Indian income exceeds the basic exemption.
Can I file my Indian return from the US?
Yes. Returns are filed online and verified electronically, usually with an Aadhaar or net-banking link, or by sending a signed verification form.
What is Form 10F?
A self-declaration filed in India, together with a tax residency certificate, to claim treaty rates on income such as interest.