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ITR

Deemed resident rule for citizens not taxed abroad

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An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country because of residence can be deemed resident in India. Such a person is treated as resident but not ordinarily resident.

Provisions

Sec 6(1A), Income-tax Act 1961; Sec 6(6), Income-tax Act 1961 (now Sec 6, Income-tax Act 2025)

Analysis

UAE has no personal income tax, so this rule can matter for UAE-based Indians. If your Indian income is below ₹15 lakh, it does not apply. If it applies, you are RNOR, so foreign income is broadly not taxed in India unless from an Indian business or profession. Get a tax residency certificate if you rely on a treaty.

Close

  1. Total your Indian income excluding foreign-source income.
  2. Check if it exceeds ₹15 lakh.
  3. Check whether you are liable to tax in your country.
  4. Declare status accordingly in ITR-2.

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