Moment guide · FY 2026-27

I am leaving India and becoming an NRI

Do I pay Indian tax after I leave India?

Your status depends on the 182-day test: 182 days or more in India makes you a resident for that year, taxable on global income; below that you are a non-resident taxed only on India-source income. NRO interest, rent and capital gains on Indian assets stay taxable, often at higher NRI TDS rates, while NRE interest is tax-free. Convert resident accounts to NRO/NRE within 6 months under FEMA.

The #1 trap

Assuming all your Indian income stops being taxed — NRO interest, rent and capital gains on Indian assets remain taxable, with higher NRI TDS rates (for example flat 30% on NRO interest with no basic-exemption set-off). The other miss is the 6-month FEMA window to convert resident accounts; after it lapses, funds and interest get tangled.

Anil, banker relocating from Mumbai to Singapore

Anil leaves Mumbai for Singapore on 1 November 2025, having spent 304 days in India in FY 2025-26, which is more than 182, so he is a resident for AY 2026-27 and his global income for the full year, including the Singapore salary from November, is taxable in India. He files his Indian return as a resident that year. From FY 2026-27 onward his stay in India is expected to be under 182 days, so he becomes a non-resident. His NRO account continues to hold his old savings, and the bank deducts TDS at 30% on the NRO interest under section 194A without allowing him the basic exemption, because non-residents do not get the resident's exemption set-off for NRO interest. His fixed deposits of ₹25,00,000 earn ₹2,00,000 a year, on which the bank deducts ₹60,000 as TDS. His NRE account, opened on arrival in Singapore, earns interest that is fully tax-free while he remains an NRI. Within six months of his departure, Anil converts his resident savings account into an NRO account, because FEMA requires the conversion and a resident account held by an NRI is not permitted. His rental income of ₹3,60,000 a year from a Mumbai flat is taxable in India, with the tenant deducting TDS under section 195 at the NRI rate. When he later sells the flat, capital gains will be taxed in India with the buyer withholding TDS on the sale consideration. Anil's Singapore salary, once he is a non-resident, is outside the Indian tax net. A quick call with us dials in the final figure. Anil also checks the 182-day test against the alternative residency conditions: if he had ever been in India for 365 days or more in the four preceding years and 60 days or more in the current year, he could be a resident even below 182 days, unless the 60-day test is relaxed for Indian citizens leaving India for employment. As a citizen leaving for employment, the relaxation applies, so his day count alone decides the first year. His NRO interest of ₹2,00,000 attracts 30% TDS, and the bank does not apply the basic exemption, so his refund position depends on his total Indian income. If his total income in the non-resident years is below the exemption limit, he still files to claim the TDS credits. A quick call with us dials in the final figure.